Program Overview
- Tax credit for $0.015/kWh ($15/MWh) of geothermal electricity generated.
- Maximum annual aggregate of $5 million.
Who is eligible?
- Individual or corporate taxpayers who hold an interest in a geothermal electricity generation facility in New Mexico.
What is offered?
- Tax credit for $0.015/kWh ($15/MWh) of geothermal electricity generated per taxable year.
How can I apply?
- Submit a completed application form to emnrd-geothermal@emnrd.nm.gov.
- Include the certificate of eligibility when filing state taxes.
Frequently Asked Questions
When is the Geothermal Electricity Generation Tax Credit available?
The tax credit is available prior to January 1, 2032.
Is the Geothermal Electricity Generation Tax Credit refundable or transferable?
No, the Geothermal Electricity Generation Tax Credit is neither refundable nor transferable. Excess tax credit may be carried forward for up to three years.
Is the Geothermal Electricity Generation Tax Credit first come, first served?
Yes, applications for the Geothermal Electricity Generation Tax Credit are considered in the order received. Applications received after the $5 million maximum annual aggregate is met are considered in the following year.
Are pre-2025 facilities eligible for the Geothermal Electricity Generation Tax Credit?
A geothermal facility built before January 1, 2025 may be eligible for the tax credit if the facility increased the amount of electricity generated from geothermal sources by at least 100% on or after January 1, 2025.
Who can I contact with additional questions?
Please contact emnrd-geothermal@emnrd.nm.gov.