New Mexico Renewable Energy Production Tax Credit Claim Form

Renewable Energy Production Tax Credit Claim Form
Form RPD-41227
RPD-41227
08/17/2021

Name of the claimant

State of New Mexico - Taxation and Revenue Department

RENEWABLE ENERGY PRODUCTION TAX CREDIT
CLAIM FORM
Claimant New Mexico Business Tax Identification Number (NMBTIN)

Federal employer identification number (FEIN)

Name of qualified energy generator if different from claimant

Address	

City / state / ZIP code

Name of contact person	

Phone number and e-mail address

Section I. Calculate credit claimed for the current tax year.
1.	 Enter the tax year in which the electricity was produced for this claim; or
	if the taxpayer files a fiscal-year or a short-year return, enter the beginning
	 and ending dates of the tax year.	
					
2.	 Enter the date the qualified energy generator began producing electricity.
3.	
	
	
	

Enter the lesser of either the kilowatt-hours of electricity produced by the qualified
energy generator using a qualified energy resource in the current tax year, or the
qualified annual production potential of the generating facility as certified by
the Energy, Minerals and Natural Resources Department (EMNRD).

4.	 Enter the amount of tax credit per kilowatt-hour to be applied to electricity produced
during the current tax year. See "THE AMOUNT OF THE CREDIT" in the instructions.	
5.	 Multiply line 3 by line 4. This is the amount of credit that may be claimed by the qualified
energy generator in the current tax year.
6.	 Enter the percentage of the renewable energy production tax credit that may be claimed
by the claimant. The percentage must match the percentage for the claimant as shown
on the Notice of Allocation issued by EMNRD for the year of this claim.
7.	 Multiply line 5 by line 6. This is the amount of renewable energy production tax credit
that may be claimed by the claimant for the current tax year.

_________________
OR

From __________ to __________

____ / ____ / ____
mm

dd

ccyy

$ _________________
_________________
$ _________________
%
_________________
$ _________________

Section II. Calculate unused credits for carry forward from prior tax year claims.
Use Schedule A to calculate the credits carried forward from claims approved for prior-years. NOTE: Any portion of the tax
credit unused at the end of the claimant's tax year may be carried forward for five (5) consecutive tax years.
8.	 Total unused credits for carry forward from prior claims. (Enter the sum of
	 column (d), Schedule A.)

$ _________________

Section III. Credit taken in current tax year.
9.	 Total credit available in the current tax year (add lines 7 and 8).

$ _________________

10.Credit taken in the current tax year. Enter the portion of total credit available in the
current tax year, line 9, that you wish to claim against the current income tax return.

$ _________________

11.Credit to be refunded to the claimant. Excess credit is refunded if the qualified energy
generator first produced electricity using a qualified energy resource on or after
October 1, 2007.

$ _________________

Enter the credit taken (the amount on line 10 of this form) on the corporate, personal or fiduciary income tax return.
NOTE: Failure to attach this form and required attachments (Certificate of Eligibility and
Notice of Allocation from EMNRD) to your return will result in denial.
I declare I have examined this application, including accompanying schedules and statements, and to the best of my knowledge and
belief this application is true, correct and complete.

_____________________________________________	 __________________________	__________________
Authorized Signature	
Title	
Date

RPD-41227, Sch A
08/17/2021

State of New Mexico - Taxation and Revenue Department

RENEWABLE ENERGY PRODUCTION TAX CREDIT
Schedule A

To complete Section II of the claim Form RPD-41227, Renewable Energy Production Tax Credit Claim Form, attach a completed Schedule A to compute unused credits for carry forward from prior tax year claims.
(a) Tax year of previous claim. For each credit claimed in a previous tax year with unused credit available for carry forward,
enter the tax year in which the credit was first claimed. Enter the four-digit year if the credit was claimed in a calendar year.
For fiscal-year and short-year returns, enter the beginning and ending dates of the tax year. For example, enter 2003 if the
tax year is a calendar year, or enter 07/01/2002 to 07/30/2003, if the tax year is a fiscal year. Do not enter a credit if the credit
is no longer available for carry forward. Excess renewable energy production tax credit may only be carried forward for five
years following the tax year that the credit is first claimed.
(b) Credit claimed. For each credit claimed in column (a), enter the amount of credit that was approved for that tax year.
(c) Total credit taken in previous tax years. For each credit amount listed in column (b), enter the total amount of credit
applied to personal or corporate income tax liabilities in prior year returns.
(d) Unused credit available for carry forward from prior claims. Subtract column (c) from column (b) and enter the difference.
Total unused credit available for carry forward. Enter the sum of all amounts in column (d). Also enter this amount on
line 8 of Form RPD-41227.
You must apply credit approved to be claimed in the tax year first. If the credit amount approved to be claimed in a tax year is
less than the personal or corporate income tax liability for that year, you may apply unused credit available for carry forward
next. When applying excess credits available for carry forward, apply the oldest credit first.
NOTE: Taxpayers who have received approval for tax credits for facilities that first produced electricity on, or after, October
1, 2007, can claim a refund for any credits in excess of their tax liability.
(a) Tax year of previous
claim

(b) Credit claimed

(c) Total credit taken in
previous tax years

Total unused credit available for carry forward. Enter the sum of
all amounts in column (d). Also enter this amount on line 8 of Form
RPD-41227.

(d) Unused credit for carry forward
from prior claims [(b) - (c)]

RPD-41227
08/17/2021

State of New Mexico - Taxation and Revenue Department

RENEWABLE ENERGY PRODUCTION TAX CREDIT
CLAIM FORM INSTRUCTIONS

ABOUT THIS CREDIT: For tax years beginning on or after
July 1, 2002, a corporate taxpayer who owns a qualified energy generator is eligible for a tax credit in an amount equal to
one cent ($.01) per kilowatt-hour of electricity produced by the
qualified energy generator using a qualified energy resource in
the tax year. Taxpayers certified under the old law are eligible
for the tax credit for ten consecutive years, beginning on
the date the qualified energy generator begins producing
electricity, or until either the facility goes out of production
for more than six consecutive months in a year or until the
facility's ten-year eligibility has expired. Prior to January 1,
2008, the credit may be deducted from the claimant's New
Mexico corporate income tax liability for the tax year.

Beginning January 1, 2008, the 2007 New Mexico Legislature
expanded the credit as follows:
•	 The credit is allowed only for facilities that first produce
electricity before January 1, 2018.
•	 The credit is expanded to includetaxpayers in the Income
Tax Act.
•	 A variable rate of credit is added for electricity produced
using solar energy.
•	 The definition of biomass was amended to include a variety
of organic materials that are available on a renewable basis
including landfill gas and municipal solid waste.
•	 The minimum size of an eligible facility for the credit is
reduced from ten megawatts to one megawatt.
•	 The maximum amount of electricity that can be certified as
eligible for the credit is increased for solar facilities only.
An additional 500,000 megawatt hours (MWh) of solargenerated power -- in addition to the two million MWh from
wind and biomass power sources -- can be approved for
credits.
•	 Taxpayers who have received approval for tax credits for
facilities that first produced electricity on, or after, October
1, 2007, can claim a refund for any credits in excess of their
tax liability.
•	 The total amount of electricity that can qualify for the corporate and individual income tax credits is two million MWh,
plus an additional 500,000 MWh for solar facilities.
Beginning July 1, 2021, the 2021 New Mexico Legislature
clarified that the credit is for 120 months in place of ten
years. It also added an 11th taxable year credit rate for
solar-light-derived or solar-heat-derived qualified energy
rescource.
The remaining instructions have been modified to include
current law.
WHO MAY CLAIM THE CREDIT: A taxpayer who files a New
Mexico personal income tax and who is not a dependent of
another taxpayer or who files a New Mexico personal, corporate or fiduciary tax return and who:
(1)	 holds title to a qualified energy generator that first pro-

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duced electricity on or before January 1, 2018; or
(2) 	 leases such a facility from a county or municipality under
the authority of an industrial revenue bond and if the
qualified energy generator first produced electricity on
or before January 1, 2018,may claim all or a portion of
the renewable energy production tax credit.
A taxpayer may be allocated all or a portion of the right to claim
the credit without regard to proportional ownership interest if:
1.	 the taxpayer owns an interest in a business entity that is
taxed federally as a partnership,
2.	 the business entity:
	 a.	 would qualify for the renewable energy production tax
credit,
	 b. 	owns an interest in a business entity that is also taxed
as a partnership and that would qualify for the renewable
energy production tax credit; or
	 c.	 owns, through one or more intermediate business entities that are each taxed as a partnership, an interest in the
business entity described in the previous paragraph (b).
3.	 the taxpayer and all other taxpayers allocated a right to
claim the credit own collectively at least five percent interest in a qualified energy generator;
4.	 the business entity provides notice of the allocation and
the taxpayer's interest to the New Mexico Energy, Minerals
and Natural Resources Department (EMNRD); and
5.	 EMNRD certifies the allocation in writing to the taxpayer.
To allocate or apportion the right to claim all or a portion of
the renewable energy production tax credit a Notice of Allocation for each taxable year the credit is claimed need to be
submitted to EMNRD for approval and once approved it will
need to be provided to the Taxation and Revenue Department
(TRD). Contact Information for EMNRD: New Mexico Energy,
Minerals and Natural Resources Department, Energy Conservation and Management Division, P.O. Box 6429, Santa
Fe, NM 87504-6429, or call (505) 476-3310
or email [email protected]
THE AMOUNT OF THE CREDIT: A taxpayer is eligible for the
renewable energy production tax credit for 120 consecutive
months beginning with the date the qualified energy generator begins producing electricity. Compute the credit based on
actual electricity produced for each of the taxable years that
is within the 120 months.
For a qualified energy generator using a wind- or biomassderived qualified energy resource, the amount of tax credit
is the lesser of $.01 per kilowatt-hour of the first 400,000
megawatt-hours of electricity produced by the qualified energy
generator in the tax year or the estimated annual production
potential of the generating facility as determined by EMNRD.
For a qualified energy generator using a solar-light-derived
or solar-heat-derived qualified energy resource, the amount
of tax credit varies based on the tax year following the date

RPD-41227
08/17/2021

State of New Mexico - Taxation and Revenue Department

RENEWABLE ENERGY PRODUCTION TAX CREDIT
CLAIM FORM INSTRUCTIONS

the generator first produces electricity using the qualified
energy resource. The chart below shows the amount of tax
credit for the first 200,000 megawatt-hours of electricity
produced by the qualified energy generator in the applicable
tax year following the day the qualified energy generator first
produces electricity.
Tax Credit per kilowatt hour

Tax year

$.015

1st

$.02

2nd

$.025

3rd

$.03

4th

$.035

5th

$.04

6th

$.035

7th

$.03

8th

$.025

9th

$.02

10th

$.015

11th

The total renewable energy tax credit allowed by all claimants
may not exceed the limits set for the renewable energy tax
credit allowed for the qualified energy generator. Credit may
not be claimed with respect to the same electricity production under both Section 7-2-18.18 and 7-2A-19 NMSA 1978.
A facility's credit for a tax year is limited to the qualified annual production potential of the generating facility as certified
by EMNRD.
APPLYING FOR CERTIFICATION FROM EMNRD:
EMNRD certifies the eligibility of an energy generator and
the estimated annual production potential of the generating
facility. The facility's estimated annual production potential
limits the facility's energy production eligible for the tax credit
for the tax year. The total amount of electricity that may be
produced annually by all qualified energy generators that
are certified may not exceed a total of two million megawatthours plus an additional 500,000 megawatt-hours produced
by qualified energy generators using a solar-light-derived or
solar-heat-derived qualified energy resource. Applications
will be considered in the order received.
Note: If allocating the right to claim all or a portion of the renewable energy production tax credit, a Notice of Allocation
will have to be approved for each taxable year the qualified
energy generator produces energy and qualfies for the credit.
To obtain a certificate of eligibility and an Notice of Allocation
for the right to claim all or a portion of the renewable energy
production tax credit contact: New Mexico Energy, Minerals
and Natural Resources Department, Energy Conservation
and Management Division, P.O. Box 6429, Santa Fe, NM

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87504-6429, or call (505) 476-3310.
or email [email protected]
Once the certificate of eligibility and the Notice of Allocation,
is approved by EMNRD you may submit the approved Notice
of Allocation to the New Mexico Taxation and Revenue Department (TRD) along with this completed form, see below
for more information.
HOW TO CLAIM THE CREDIT:
A taxpayer may claim the renewable energy production tax
credit by submitting to TRD, a completed Form RPD-41227,
New Mexico Renewable Energy Production Tax Credit Claim
Form, the Certificate of Eligibility issued by EMNRD, the Notice of Allocation approved by EMNRD and documentation
showing the amount of electricity produced by the facility in
the taxable year. TRD may require additional information to
verify eligibility. If the requirements have been complied with,
TRD shall approve the claim and any avaliable payment for
the renewable energy production tax credit as indicated on
the claim form and the associated personal, corporate or
fiduciary tax return Schedule CR for the taxable year.
The credit may be deducted from a taxpayer's New Mexico
corporate, personal, and fiduciary income tax liability for the
tax year for which the credit is claimed. If the amount of tax
credit exceeds the taxpayer's personal, corporate, or fiduciary
income tax liability for the tax year:
(1) 	 the excess may be carried forward for a period of five
tax years; or
(2)	 if the tax credit was issued with respect to a qualified
energy generator that first produced electricity using a
qualified energy resource on or after October 1, 2007,
the excess shall be refunded to the taxpayer.
Renewable energy production tax credit approved to be
claimed for the current tax year must be applied first. If the
credit amount approved to be claimed in a tax year is less
than the personal or corporate income tax liability for that
year, you may apply unused credit available for carry forward.
When applying unused credits available for carry forward,
apply the oldest credit first.
Report the credit taken on the New Mexico personal income
tax return, corporate income tax return or fiduciary income
tax return. Submit Form RPD-41227, New Mexico Renewable
Energy Production Tax Credit Claim Form, and attachments
with your income tax return.
Once a taxpayer has been granted a renewable energy production tax credit for a given facility, that taxpayer shall be
allowed to retain the facility's original date of application for
tax credits for that facility until either the facility goes out of
production for more than six consecutive months in a year or
until the facility's 120 months eligibility has expired.

RPD-41227
08/17/2021

State of New Mexico - Taxation and Revenue Department

RENEWABLE ENERGY PRODUCTION TAX CREDIT
CLAIM FORM INSTRUCTIONS
IMPORTANT DEFINITIONS:
Biomass means organic material that is available on a renewable or recurring basis, including:
(a) 	 forest-related materials, including mill residues, logging
residues, forest thinnings, slash, brush, low-commercial
value materials or undesirable species, salt cedar and
other phreatophyte or woody vegetation removed from
river basins or watersheds and woody material harvested
for the purpose of forest fire fuel reduction or forest health
and watershed improvement;
(b) 	agricultural-related materials, including orchard trees,
vineyard, grain or crop residues, including straw and
stover, aquatic plants and agricultural processed coproducts and waste products including fats, oils, greases,
whey and lactose;
(c) 	animal waste, including manure and slaughterhouse and
other processing waste;
(d) 	solid woody waste materials, including landscape or rightof-way tree trimmings, rangeland maintenance residues,
waste pallets, crates and manufacturing, construction
and demolition wood wastes, excluding pressure-treated,
chemically treated or painted wood wastes and wood
contaminated with plastic;
(e) 	crops and trees planted for the purpose of being used to
produce energy;

(f) 	 landfill gas, wastewater treatment gas and biosolids,
including organic waste byproducts generated during
the wastewater treatment process; and
(g) 	segregated municipal solid waste, excluding tires and
medical and hazardous waste.
Qualified energy generator means an electric generating
facility with at least one megawatt generating capacity located
in New Mexico that produces electricity using a qualified
energy resource and the electricity produced is sold to an
unrelated person.
Qualified energy resource means a resource that generates
electrical energy by means of a fluidized bed technology or
similar low-emissions technology, or a zero-emissions generation technology that has substantial long-term production
potential and that uses only solar light, solar heat, wind, or
biomass.

POINTS OF CONTACT:
New Mexico Energy, Minerals and Natural Resources Department
Energy Conservation and Management Division
P.O. Box 6429
Santa Fe, NM 87504-6429
or call (505) 476-3310
or email [email protected]
New Mexico Taxation and Revenue Department
Business Credit Claim Unit
P.O. Box 630
Santa Fe, NM 87504-0630
or call (505) 827-0792
[email protected]

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