The Agricultural Biomass Tax Credits allows owners of dairy facilities to engage in biomass energy production and receive a credit as a result.
NMSA Sections 7-2-18.26 and 7-2A-26 creates a personal and corporate income tax credit for dairy or feedlot producers who transport agricultural biomass (i.e., dairy manure) to a qualified energy-production facility that generates electricity, makes biocrude or produces liquid or gaseous fuel for commercial use. The qualified individual or corporate taxpayer who files a New Mexico income tax return for a taxable year beginning on or after January 1, 2011, and ending prior to January 1, 2020, is eligible. A tax credit is an amount equal to no more than $5.00 for every “wet ton” of agricultural transported from the taxpayer’s dairy or feedlot to a qualified energy-production facility. Any portion of the agricultural biomass personal income or corporate income taxpayer credit that remains unused in the taxable year may be carried forward for four consecutive years, following the taxable year in which the tax credit originates. The aggregate amount of all personal and corporate agricultural biomass tax credits shall not exceed $5,000,000 annually. Please review our Comparison Chart here for an overview.