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Advanced Energy Equipment Tax Credit

The Advanced Energy Equipment tax credit (Corporate – NMSA 7-2A-19.3.) (Personal Income – NMSA 7-2-18.39.) offsets the costs of equipment needed to produce components that qualify under the federal Inflation Reduction Act’s 45X provision for solar energy, wind energy, battery manufacturing, and rare earth element production. The credit is equal to 20 percent of qualified equipment costs up to a maximum $25 million per project. The total annual aggregate amount of advanced energy equipment tax credits that may be certified in a calendar year cannot exceed $25 million.

To apply for the credit, applicants must first fill out and submit Form 45.A which is the application for preliminary certification of eligibility. Once submitted, the Energy, Minerals and Natural Resources Department (EMNRD), in partnership with the Department of Economic Development (EDD), will review the application. If the application meets the criteria of NMSA 7-2A-19.3. or NMSA 7-2-18.39., EMNRD will issue a letter to the applicant confirming pre-certification, at which point the applicant can confidently move forward with qualified equipment procurement.

Within twelve months of commencement of production of any advanced energy product, the applicant shall seek final certification from EMNRD through Form 45.B.

EMNRD and EDD will review the application and make a final determination on certification. As part of the final certification process, EMNRD staff will conduct a site visit to verify the accuracy of the applicant’s submissions. The tax credit shall be claimed within one year of receiving final certification from EMNRD.  Any amount of credit that exceeds the taxpayer’s income tax liabilities may be carried forward for five consecutive taxable years. 

The credit also includes claw back provisions if the facility stops operations for 180 days within two years of claiming the credit. Therefore, the tax credit recipient will have to fill out Form 45.D two years after receiving the credit.

All forms should be submitted to: advanced.energy.equipment@emnrd.nm.gov

• Corporate – NMSA 7-2A-19.3
• Personal Income – NMSA 7-2-18.39
• Form 45.A: Application for Preliminary Certification of Eligibility
• Form 45.B: Advance Energy Equipment Tax Credit Application
• Form 45.D: Ensuring Manufacturing within 2-Years of receiving the credit