Maria Blais Costello
December 05, 2014
The State of New Mexico now has a total renewable generation capacity that is over 1 million kilowatts. This huge milestone for renewable energy in New Mexico would have not been realized so soon without the NM Renewable Energy Production Tax Credit (REPTC). The REPTC is not just a credit on taxes owed, it is a refundable credit and can be allocated at any time to a new owner of renewable electric generation. The program supports utility-scale wind, biomass, and solar projects by providing a refundable corporate income tax credit for companies that generate electricity from renewable energy resources.
For wind and biomass, the credit is applicable on the first 400,000 MWh of electricity in each of 10 consecutive taxable years. There is a 1 cent per kilowatt-hour (kWh) credit for wind or biomass, and between 1.5–4 cents per kWh for solar generation. For solar, the credit is applicable only to the first 200,000 MWh of electricity in each taxable year. To qualify, an energy generator must have a capacity of at least 1 MW and be installed before January 2018.
This innovative program involved collaboration between utilities, industry, and state government. It has resulted in long-term economic and societal benefits, leveraged private investment, and increased renewable energy deployment. For full article.