The Renewable Energy Production Tax Act establishes an excise tax on electricity generated from renewable energy resources in New Mexico, set at three and three-fourths percent of the taxable value of each megawatt-hour produced. The taxable value is determined by the wholesale price of electricity in the southwest regional market. The Act also outlines exemptions for certain entities, including the U.S. government, state and local governments, Indian nations, and for personal consumption by producers, provided the excess does not exceed 500 kilowatt-hours in a 24-hour period. The tax is to be paid by the 25th day of the month following the taxable event.

Additionally, the Act amends existing laws to include the Renewable Energy Production Tax Act within the Tax Administration Act and mandates that the net receipts from this tax be distributed to the severance tax permanent fund. The provisions of the Act will take effect on January 1, 2026, and certain sections of previous laws are repealed to align with this new legislation. The Act also includes a delayed repeal clause, indicating that specific sections will be repealed effective July 1, 2030.

Statutes affected:
introduced version: 7-1-2, 7-1-8.8