Advanced Energy Gross Receipts Tax Deduction (New Mexico)

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Last modified on February 12, 2015.

Financial Incentive Program

Place New Mexico

Name Advanced Energy Gross Receipts Tax Deduction
Incentive Type Sales Tax Incentive
Applicable Sector Commercial, Construction, Installer/Contractor, Retail Supplier
Eligible Technologies Solar Thermal Electric, Photovoltaics, Geothermal Electric
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100% of gross receipts from sale and installation of an eligible facility

Equipment Requirements Solar and Geothermal: 1 Megawatt minimum

Recycled Energy: 15 Megawatt maximum

Start Date 2010-07-01

Maximum Incentive 60 million

Program Administrator Taxation and Revenue Department

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


New Mexico has a gross receipts tax structure for businesses instead of a sales tax. Businesses are taxed on the gross amount of their business receipts each year before expenses are deducted. Revenue generated by the sale and installation of a "qualified generating facility" may be deducted from gross receipts before the gross receipts tax is calculated. The deductions are allowed for a 10-year period starting the year construction begins. Qualified generating facilities have a minimum nameplate capacity of 1 megawatt (MW) and include geothermal thermal electric, photovoltaic, solar thermal electric, and recycled energy systems.

To qualify for the exemption, the owner of a qualified generating facility must first obtain a certificate of eligibility from the Department of Environment. The owner must then present the certificate of eligibility to the Taxation and Revenue Department to obtain a nontaxable transaction certificate. The owner must then give the nontaxable transaction certificate to the seller of the equipment. This credit can be claimed on equipment leased in addition to equipment purchased.

Incentive Contact

Contact Name Information Specialist
Department New Mexico Taxation & Revenue Department
Address 1100 South St. Francis Drive
Place Santa Fe, New Mexico
Zip/Postal Code 87504
Phone (505) 827-0700


Authorities (Please contact the if there are any file problems.)

Authority 1: N.M. Stat. § 7-9-114
Date Effective 2010-07-01
Date Enacted 2010-03-08

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


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