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 from this tax for electricity produced by certain entities, including the U.S. government, state and local governments, and Indian nations, as well as for personal consumption by producers under specific conditions. The tax is to be paid by the twenty-fifth day of the month following the generation of electricity.

Additionally, the Act amends existing laws to include the Renewable Energy Production Tax Act within the Tax Administration Act, ensuring its administration and enforcement align with other tax acts. It 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 The provisions of the Act will take effect on January 1, 2026, and certain sections of previous laws are repealed to accommodate this new legislation.

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