Alternative Energy Product Manufacturers Tax Credit
Administered by New Mexico Energy, Minerals and Natural Resources Department
This program does not apply to homeowners; it is an industry tax credit for manufacturers of alternative energy products and components.
This program does not apply to contractors; it is a tax credit for companies that manufacture alternative energy equipment, renewable energy systems, fuel cell systems, or electric and hybrid-electric vehicles.
This is a manufacturing tax credit administered by the New Mexico Taxation and Revenue Department. Eligible manufacturers can claim up to 5% of qualified equipment expenditures as a tax credit against gross receipts, compensating, and withholding taxes, with a 5-year carryforward period. Applicants must hire at least one new full-time employee per $500,000 in expenditures (up to $30 million) or per $1 million over that threshold, and the total credit amount is subject to department approval. The program targets manufacturers in renewable energy, fuel cells, and electric vehicle sectors.
Program details
- Program ID
- 2567
- Effective
- 7/1/2006
- Last updated
- 6/3/2025
Eligibility
- Sectors
- commercial industrial
- Technologies
- geothermal electric solar thermal electric solar photovoltaics wind (all) biomass municipal solid waste fuel cells using non-renewable fuels landfill gas wind (small) anaerobic digestion fuel cells using renewable fuels
Program summary
The Alternative Energy Product Manufacturers tax credit may be claimed for manufacturing alternative energy products and components, including renewable energy systems, fuel cell systems, and electric and hybrid-electric vehicles. Alternative energy components include parts, assembly of parts, materials, ingredients, or supplies that are incorporated directly into end-use products. In 2011 S.B. 233 added "products extracted from or secreted by a single cell photosynthetic organism" to the list of eligible alternative energy products.
Tax Credit
The total amount of the credit is approved by the Taxation and Revenue Department and is not to exceed 5% of the taxpayer’s qualified expenditures. A qualified expenditure is the purchase of manufacturing equipment made after July 1, 2006.
Eligibility
To be eligible to claim a credit, the taxpayer must employ at least one new full-time employee for every $500,000 of expenditures up to $30,000,000, and at least one new full-time employee for every $1,000,000 of expenditures over $30,000,000.
Carry Over
The alternative energy product manufacturers tax credit may only be deducted from the taxpayer's modified combined tax liability, which is the total liability for the reporting period for the gross receipts, compensating tax, and withholding tax. Any portion of the alternative energy product manufacturers tax credit that remains unused at the end of the taxpayer's reporting period may be carried forward for 5 years.
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
