Agricultural Biomass Income Tax Credit (Personal)

New Mexico dairy and feedlot operators can earn a $5 tax credit per wet ton of manure transported to facilities that generate electricity or produce fuel, with credits available for biomass delivered between January 1, 2011 and January 1, 2030. To claim the credit, you must apply to the Taxation and Revenue Department and obtain a Certificate of Transportation, then report the credit on your personal income tax return using the required forms.

Your facility becomes eligible for this incentive when it receives agricultural biomass (wet manure) from qualified dairy or feedlot operations; the incentive rewards your feedstock suppliers at $5 per wet ton, making their participation more economically attractive. You should ensure suppliers understand the application process with the Taxation and Revenue Department and help them obtain transportation certificates, as the program distributes up to $5 million in credits annually on a first-come, first-served basis.

This personal income tax credit, established by H.B. 171 (2010), pays $5 per wet ton of agricultural biomass (dairy/feedlot manure) transported to bioconversion facilities, covering taxable years 2011–2029. The Taxation and Revenue Department administers a $5 million annual credit pool awarded on a first-come, first-served basis to applicants who obtain a Certificate of Transportation; EMNRD may adopt additional biomass specifications by rule and issues the transportation certificates that document eligible feedstock movement.