Bill > HB113

This bill, titled the Renewable Energy Production Tax Act, imposes an excise tax on electricity generated from renewable energy resources, such as solar, wind, hydropower, geothermal, and biomass (including agricultural waste, timber, and landfill gas). The tax rate is set at three and three-fourths percent of the wholesale value of each megawatt-hour of electricity produced, with the wholesale value determined by the U.S. Energy Information Administration for the southwest regional market. This tax is intended to be administered by the taxation and revenue department, and payments are due by the 25th of the month following generation. Certain entities, including the U.S. government, state and local governments, and Native American tribes on their sovereign territory, are exempt from this tax, as is electricity produced for personal consumption by the producer, up to a certain limit. Importantly, all revenue collected from this new "renewable energy production tax" will be distributed to the severance tax permanent fund, which is a fund established to save a portion of the state's revenue from natural resource extraction for future generations. The bill also clarifies that the Tax Administration Act will govern the enforcement and administration of this new tax, and its provisions will take effect on January 1, 2027.

Agriculture and Natural Resources

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=113&year=26