New Mexico Administrative Code

February 25, 2025, unless a later date is cited at the end of a section, in which case the later date is the effective date.

The objective of this part is to interpret, exemplify, implement and enforce the provisions of tax credit acts and tax credits which are regulated specifically under Chapter 3 Article 13 NMAC.

Unless otherwise stated, all citations to statutes in Chapter 3 Article 13 NMAC are to the New Mexico Statutes Annotated 1978.

Energy, Minerals and Natural Resources Department.

A. The division shall consider applications in the order received, according to the day it receives them, but not the time of day. The division shall give applications it receives on the same day equal consideration. If the division approves applications it received on the same d…

A. An applicant may request in writing that the department hold materials submitted as part of the application package and certification process confidential pursuant to NMSA 1978, Section 71-2-8. The applicant shall address the request to the director. B. An applicant may reques…

A. When a qualified energy generator, for which the division has approved a tax credit application package, produces power and it is sold to an unrelated person, then the applicant may request certification from the division. If the applicant is different from the original applic…

A. To claim the renewable energy production tax credit, a taxpayer shall submit to the New Mexico taxation and revenue department the certificate the department issued to the applicant stating that the facility is an eligible qualified energy generator, a copy of the certificate …

A. A business entity may allocate a taxpayer all or a portion of the right to claim a tax credit without regard to proportional ownership if: (1) the taxpayer owns an interest in a business entity that is taxed for federal income tax purposes as a partnership; (2) the business en…

When determining whether a generator is a separate facility or is one of several generators located in the same geographical location (e.g. mesa, section of land) that comprise a single facility, the division shall consider the following factors that indicate whether or not the g…

This part applies to the application and certification procedures for administration of the renewable energy production tax credit.

These rules are established under the authority of NMSA 1978, Sections 7-2A-19 and 9-1-5 E.

Permanent.

March 15, 2003 unless a later date is cited at the end of a section.

This part's objective is to establish procedures for administering the renewable energy production tax credit.

A. "Applicant" means a business entity that holds title to a qualifying energy generator or leases property upon which a qualified energy generator operates from a county or municipality pursuant to an industrial revenue bond, or plans to develop a qualified energy generator and …

A. Only those taxpayers that meet the requirements of 3.13.19.14 NMAC are eligible for a tax credit. B. A proposed project shall meet these required milestones. If a project fails to meet a milestone, the division shall reject the application. (1) Applicant submits a complete ren…

A. A renewable energy production tax credit application form can be obtained from the division. B. An applicant shall submit an application package to the division. C. The application package shall consist of a completed renewable energy production tax credit application form, wi…

Taxation and Revenue Department

The term "manufacturing operation" is defined as a plant where personnel perform production tasks "in conjunction with equipment not previously existing at the site" to produce goods. Equipment need not be employed exclusively in the manufacturing process as long as the equipment…

To calculate the number of full-time-equivalent employees, add the average weekly hours worked or expected to be worked by all employees whose regular weekly work hours are or are expected to be less than forty hours. Divide the total by 40 and round down to the nearest whole num…

A. The investment credit is available only to manufacturers who increase employment in the relevant periods. Manufacturers who do not meet the employment requirement do not qualify for the investment credit, regardless of the amount of equipment acquired. B. Example: (1) X is a m…

The credit allowed by Section 7-9A-8 NMSA 1978 may not be applied against any local option gross receipts tax imposed by a county or municipality.

A. Any amount of investment credit claimed and approved may be applied by the claimant only against the gross receipts, compensating and withholding taxes owed by the claimant. The credit amount may not be transferred to any other person, including an affiliate. B. Example: (1) C…

To meet the employment requirement, the credit claimant must report the number of full-time-equivalent employees employed on the day the credit is applied for. This number is to be compared with the number of full-time-equivalent employees on the same day in the prior year. Becau…

If a taxpayer claims any amount of research and development small business tax credit with respect to a reporting period, the taxpayer may not claim any amount of approved investment credit with respect to that same period. If for the same reporting period an amount of investment…

This part applies to all persons carrying on a manufacturing operation in New Mexico and to any other person eligible to obtain the investment tax credit.

Section 9-11-6.2 NMSA 1978.

Permanent.

April 28, 2000, unless a later date is cited at the end of a section, in which case the later date is the effective date.

The objective of this part is to interpret, exemplify, implement and enforce the provisions of the Investment Credit Act.

For purposes of Section 7-9A-3 NMSA 1978, "subject to depreciation" means the taxpayer's federal income tax return must include a depreciation expense with respect to equipment for which an investment credit is sought or claimed. Equipment depreciated under the accelerated cost r…

A. Any equipment that is placed into service on or after January 1, 1991, under the provisions of either the Industrial Revenue Bond Act or the County Industrial Revenue Bond and that otherwise meets the requirements of the Investment Credit Act is "qualified equipment" for the p…

Tangible personal property which is not a machine, mechanism or tool, or a component or fitting thereof, is not "equipment" for the purpose of the Investment Credit Act. Accordingly such items as furniture, shelving and supplies are not "equipment". Equipment that is neither esse…

Energy, Minerals and Natural Resources Department and the Taxation and Revenue Department.

A. An applicant who submitted an assessment application to the energy, minerals and natural resources department and received a finding from the secretary the donation or proposed donation is for a conservation or preservation purpose and will protect that conservation or preserv…

A. Authority to review. The secretary reviews certification of eligibility applications. B. Appraisal review. Upon receiving the certification of eligibility application, the secretary requests that the taxation and revenue department review the appraisal and forwards the apprais…

A. If after review of a certification of eligibility application, the secretary determines there is cause to reject the certification of eligibility application, the secretary shall issue a letter advising the applicant the secretary is proposing to reject the certification of el…

A. The donation shall meet the following three criteria for the secretary to consider the donation for certification eligibility:(1) the land or interest in land fits one or more of the descriptions of purposes in Subsection D of 3.13.20.7 NMAC; (2) the recipient is a public or p…

A. After obtaining a certificate of eligibility from the energy, minerals and natural resources department, the applicant shall apply for the land conservation incentives tax credit with the taxation and revenue department on a form the taxation and revenue department develops. T…

A. An applicant may sell, exchange or otherwise transfer an approved land conservation incentives tax credit, represented by the document the taxation and revenue department issues, for a conveyance made on or after January 1, 2008. A land conservation incentives tax credit or in…

3.13.20 NMAC, effective on June 16, 2008, shall apply to those applications for a land conservation incentives tax credit, an applicant submits on or after June 16, 2008 even if the applicant conveyed the donation prior to that date.

3.13.20 NMAC applies to application and certification procedures for administration of the land conservation incentives tax credit.

3.13.20 NMAC is adopted pursuant to NMSA 1978, Sections 7-2-18.10; 7-2A-8.9; 9-1-5(E) and 9-11-6.2 and the Land Conservation Incentives Act, NMSA 1978, Sections 75-9-1 to 75-9-6.

Permanent.

June 16, 2008, unless a later date is cited at the end of a section.

3.13.20 NMAC's objective is to establish procedures for certifying whether donations of land or interests in land to public or private conservation agencies made on or after January 1, 2004, are eligible for the land conservation incentives tax credit and to administer the land c…

A. "Applicant" means a taxpayer who on or after January 1, 2004, donates or partially donates (or for purposes of 3.13.20.8 NMAC plans to donate or partially donate) through a bargain sale for a conservation or preservation purpose, a perpetual less-than-fee interest in land that…

A. Only an applicant may apply for a land conservation incentives tax credit. B. A taxpayer shall be listed as an owner on the deed conveying the land or interest in land to be eligible for the land conservation incentives tax credit (see Subsection N of 3.13.20.8 NMAC for use of…