The bill amends existing laws regarding the Agricultural Biomass Income Tax Credit and the Agricultural Biomass Corporate Income Tax Credit in New Mexico. It increases the tax credit amount from five dollars ($5.00) to ten dollars ($10.00) per wet ton of agricultural biomass transported from a dairy or feedlot to a facility that utilizes this biomass for generating electricity or producing biocrude and other fuels. The bill also establishes that taxpayers who qualify for these credits must apply for certification from the energy, minerals, and natural resources department, which will issue certificates detailing the eligible credit amount and taxable year.

Additionally, the bill sets an aggregate limit of five million dollars ($5,000,000) per calendar year for the total amount of both credits that can be certified. It allows unused credits to be carried forward for up to four consecutive taxable years and permits the transfer of credits between taxpayers. The provisions of this act will take effect for taxable years beginning on or after January 1, 2026.

Statutes affected:
introduced version: 7-2-18.26, 7-2A-26