NMSA 1978, § 7-9-98 — 7-9-98

Deduction; compensating tax; biomass-related equipment;
biomass materials.

# A.

The value of a biomass boiler, gasifier, furnace, turbine-generator, storage
facility, feedstock processing or drying equipment, feedstock trailer or interconnection
transformer may be deducted in computing the compensating tax due.

# B.

The value of biomass materials used for processing into biopower, biofuels or
biobased products may be deducted in computing the compensating tax due.

# C.

As used in this section:
(1) "biobased products" means products created from plant- or crop-based
resources such as agricultural crops and crop residues, forestry, pastures and
rangelands that are normally made from petroleum
(2) "biofuels" means biomass converted to liquid or gaseous fuels such as
ethanol, methanol, methane and hydrogen;
(3) "biomass material" means organic material that is available on a
renewable or recurring basis, including:
(a) forest-related materials, including mill residues, logging residues, forest
thinnings, slash, brush, low commercial value materials or undesirable species, salt
cedar and other phreatophyte or woody vegetation removed from river basins or
watersheds and woody material harvested for the purpose of forest fire fuel reduction or
forest health and watershed improvement;
(b) agricultural-related materials, including orchard trees, vineyard, grain or
crop residues, including straws and stover, aquatic plants and agricultural processed
co-products and waste products, including fats, oils, greases, whey and lactose;
(c) animal waste, including manure and slaughterhouse and other processing
waste;
(d) solid woody waste materials, including landscape or right-of-way tree
trimmings, range land maintenance residues, waste pallets, crates and manufacturing,
construction and demolition wood wastes, excluding pressure-treated, chemically
treated or painted wood wastes and wood contaminated with plastic;
(e) crops and trees planted for the purpose of being used to produce energy;
(f) landfill gas, wastewater treatment gas and biosolids, including organic
waste byproducts generated during the wastewater treatment process; and
(g) segregated municipal solid waste, excluding tires and medical and
hazardous waste; and
(4) "biopower" means biomass converted to produce electrical and thermal
energy.