The Renewable Energy Production Tax Act establishes an excise tax on electricity generated from renewable energy resources in New Mexico. This tax is set at three and three-fourths percent of the taxable value of each megawatt-hour of electricity produced. The taxable value is determined by the wholesale price of electricity in the southwest regional market, and the tax is due on the twenty-fifth day of the month following the generation of electricity. The Act also outlines specific exemptions from the tax, including electricity produced by government entities, Indian nations, and for personal consumption by the producer, provided it does not exceed 500 kilowatt-hours in a 24-hour period.

Additionally, the Act mandates that the net receipts from the renewable energy production tax be distributed to the severance tax permanent fund. The provisions of this Act will apply to electricity production from renewable energy resources starting January 1, 2027, and it is officially cited as the "Renewable Energy Production Tax Act." The Act also amends existing tax law to include this new tax under the jurisdiction of the Tax Administration Act.

Statutes affected:
introduced version: 7-1-2