AI-assisted research summary: A qualifying taxpayer may claim a $5.00-per-wet-ton credit for agricultural biomass transported from a dairy or feedlot to a qualifying fuel- or electricity-producing facility, if the taxpayer applies for certification and follows department procedures.
7-2-18.26. Agricultural biomass income tax credit. A. A taxpayer who owns a dairy or feedlot and who files an individual New Mexico income tax return for a taxable year ending prior to January 1, 2030, may claim, and the department may allow, a tax credit equal to five dollars ($5.00) per wet ton of agricultural biomass transported from the taxpayer's dairy or feedlot to a facility that uses agricultural biomass to generate electricity or make biocrude or other liquid or gaseous fuel for commercial use. The tax credit created in this section may be referred to as the "agricultural biomass income tax credit". B. Subject to the limitations pursuant to Subsection D of this section, a taxpayer shall apply for certification of eligibility for the agricultural biomass income tax credit from the energy, minerals and natural resources department on forms and in the manner prescribed by that department. Completed applications shall be considered in the order received. A dated certificate of eligibility shall be issued to the taxpayer providing the amount of credit for which the taxpayer is eligible and the taxable year in which the credit may be claimed. C. The energy, minerals and natural resources department shall: (1) adopt rules establishing procedures to provide certification of transportation of agricultural biomass to a qualified facility that uses agricultural biomass to generate electricity or make biocrude or other liquid or gaseous fuel for commercial use for purposes of obtaining an agricultural biomass income tax credit; and (2) provide the department appropriate information for all certificates of eligibility in a secure manner on regular intervals agreed upon by both departments. D. The aggregate amount of agricultural biomass income tax credits and agricultural biomass corporate income tax credits that may be certified is five million dollars ($5,000,000) per calendar year. Applications for certification received after this limitation shall not be approved. Any amount of credit that remains unused in a taxable year may be available for certification for a maximum of four consecutive taxable years until the credit is fully utilized. E. Any portion of the agricultural biomass income tax credit that exceeds a taxpayer's income tax liability in the taxable year in which the credit is being claimed may be carried forward for up to three consecutive taxable years. A certificate of eligibility for an agricultural biomass income tax credit may be sold, exchanged or otherwise transferred to another taxpayer for the full value of the credit. The parties to such a transaction shall notify the department of the sale, exchange or transfer within ten days of the sale, exchange or transfer. F. A taxpayer who otherwise qualifies and claims an agricultural biomass income tax credit with respect to a dairy or feedlot owned by a partnership or other business association of which the taxpayer is a member may claim the credit only in proportion to that taxpayer's interest in the partnership or business association. The total agricultural biomass income tax credits claimed in the aggregate with respect to the same dairy or feedlot by all members of the partnership or business association shall not exceed the amount of the credit that could have been claimed by a single owner of the dairy or feedlot. G. Married individuals who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the credit that would have been allowed on a joint return. H. A taxpayer who claims an agricultural biomass income tax credit shall not also claim an agricultural biomass corporate income tax credit for transportation of the same agricultural biomass on which the claim for that agricultural biomass income tax credit is based. I. A taxpayer allowed a tax credit pursuant to this section shall claim the credit on forms and in a manner required by the department. J. The tax credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the tax credit. K. As used in this section: (1) "agricultural biomass" means wet manure meeting specifications established by the energy, minerals and natural resources department from either a dairy or feedlot commercial operation; (2) "biocrude" means a nonfossil form of energy that can be transported and refined using existing petroleum refining facilities and that is made from biologically derived feedstocks and other agricultural biomass; (3) "feedlot" means an operation that fattens livestock for market; and (4) "dairy" means a facility that raises livestock for milk production. History: Laws 2010, ch. 84, § 1; 2020, ch. 20, § 1; 2025, ch. 130, § 42.