Agricultural Biomass Income Tax Credit (Corporate)

This corporate tax credit does not apply to individual homeowners; it is designed for businesses that operate dairy or feedlot operations and transport agricultural biomass (wet manure) to facilities that generate electricity or produce fuel. If your farm qualifies, you would need to apply to New Mexico's Taxation and Revenue Department for a qualification document on a first-come, first-served basis to receive $5 per wet ton of biomass transported.

Contractors or facilities that process agricultural biomass into electricity or liquid/gaseous fuel can work with qualifying dairy and feedlot operations to capture this credit. Your customers must transport wet manure to your facility between January 1, 2011 and January 1, 2030, and both parties should coordinate on obtaining the required Certificate of Transportation from EMNRD; the program distributes up to $5 million in credits annually on a first-come, first-served basis, so early application is important.

This H.B. 171 corporate tax credit provides $5 per wet ton of agricultural biomass transported from dairy or feedlot operations to energy or fuel production facilities, capped at $5 million in annual distributions awarded first-come, first-served. Eligibility runs from January 1, 2011 through January 1, 2030; applicants must obtain a Certificate of Transportation (Form 8 and Volume Ticket Form 9) from EMNRD and file claims with the Taxation and Revenue Department using Form RPD-41361. EMNRD may establish additional biomass specifications through rule making.