us-nm/stat
NMSA 1978, § 7-2-18.26 — Agricultural biomass income tax credit
A.
A taxpayer who owns a dairy or feedlot and who files an individual New Mexico
income tax return for a taxable year ending prior to January 1, 2030, may claim, and the
department may allow, a tax credit equal to five dollars ($5.00) per wet ton of
agricultural biomass transported from the taxpayer's dairy or feedlot to a facility that
uses agricultural biomass to generate electricity or make biocrude or other liquid or
gaseous fuel for commercial use. The tax credit created in this section may be referred
to as the "agricultural biomass income tax credit".
B.
Subject to the limitations pursuant to Subsection D of this section, a taxpayer
shall apply for certification of eligibility for the agricultural biomass income tax credit
from the energy, minerals and natural resources department on forms and in the
manner prescribed by that department. Completed applications shall be considered in
the order received. A dated certificate of eligibility shall be issued to the taxpayer
providing the amount of credit for which the taxpayer is eligible and the taxable year in
which the credit may be claimed.
C.
The energy, minerals and natural resources department shall:
(1) adopt rules establishing procedures to provide certification of
transportation of agricultural biomass to a qualified facility that uses agricultural biomass
to generate electricity or make biocrude or other liquid or gaseous fuel for commercial
use for purposes of obtaining an agricultural biomass income tax credit; and
(2) provide the department appropriate information for all certificates of
eligibility in a secure manner on regular intervals agreed upon by both departments.
D.
The aggregate amount of agricultural biomass income tax credits and agricultural
biomass corporate income tax credits that may be certified is five million dollars
($5,000,000) per calendar year. Applications for certification received after this
limitation shall not be approved. Any amount of credit that remains unused in a taxable
year may be available for certification for a maximum of four consecutive taxable years
until the credit is fully utilized.
E.
Any portion of the agricultural biomass income tax credit that exceeds a
taxpayer's income tax liability in the taxable year in which the credit is being claimed
may be carried forward for up to three consecutive taxable years. A certificate of
eligibility for an agricultural biomass income tax credit may be sold, exchanged or
otherwise transferred to another taxpayer for the full value of the credit. The parties to
such a transaction shall notify the department of the sale, exchange or transfer within
ten days of the sale, exchange or transfer.
F.
A taxpayer who otherwise qualifies and claims an agricultural biomass income
tax credit with respect to a dairy or feedlot owned by a partnership or other business
association of which the taxpayer is a member may claim the credit only in proportion to
that taxpayer's interest in the partnership or business association. The total agricultural
biomass income tax credits claimed in the aggregate with respect to the same dairy or
feedlot by all members of the partnership or business association shall not exceed the
amount of the credit that could have been claimed by a single owner of the dairy or
feedlot.
G.
Married individuals who file separate returns for a taxable year in which they
could have filed a joint return may each claim only one-half of the credit that would have
been allowed on a joint return.
H.
A taxpayer who claims an agricultural biomass income tax credit shall not also
claim an agricultural biomass corporate income tax credit for transportation of the same
agricultural biomass on which the claim for that agricultural biomass income tax credit is
based.
I.
A taxpayer allowed a tax credit pursuant to this section shall claim the credit on
forms and in a manner required by the department.
J.
The tax credit provided by this section shall be included in the tax expenditure
budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of
the tax credit.
K.
As used in this section:
(1) "agricultural biomass" means wet manure meeting specifications
established by the energy, minerals and natural resources department from either a
dairy or feedlot commercial operation;
(2) "biocrude" means a nonfossil form of energy that can be transported and
refined using existing petroleum refining facilities and that is made from biologically
derived feedstocks and other agricultural biomass;
(3) "feedlot" means an operation that fattens livestock for market; and
(4) "dairy" means a facility that raises livestock for milk production.
Source: official text