NM
New Mexico House Bill HB45

New Mexico 2025 Regular Session

New Mexico House Bill HB45 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 underscored material = new
22 [bracketed material] = delete
33 1
44 2
55 3
66 4
77 5
88 6
99 7
1010 8
1111 9
1212 10
1313 11
1414 12
1515 13
1616 14
1717 15
1818 16
1919 17
2020 18
2121 19
2222 20
2323 21
2424 22
2525 23
2626 24
2727 25
2828 HOUSE BILL 45
2929 57
3030 TH LEGISLATURE
3131 -
3232
3333 STATE
3434
3535 OF
3636
3737 NEW
3838
3939 MEXICO
4040
4141 -
4242 FIRST SESSION
4343 ,
4444
4545 2025
4646 INTRODUCED BY
4747 John Block
4848 AN ACT
4949 RELATING TO TAXATION; ENACTING THE RENEWABLE ENERGY PRODUCTION
5050 TAX ACT; IMPOSING AN EXCISE TAX ON ELECTRICITY GENERATED FROM
5151 RENEWABLE ENERGY RESOURCES; DISTRIBUTING REVENUE FROM THE TAX
5252 TO THE SEVERANCE TAX PERMANENT FUND; AMENDING AND REPEALING
5353 CERTAIN SECTIONS OF THE NMSA 1978 AND LAWS 2024, CHAPTER 41
5454 THAT ENACTED THE HEALTH CARE DELIVERY AND ACCESS ACT TO CONFORM
5555 THE CONTINGENT EFFECTIVE DATE AND DELAYED REPEAL OF THAT ACT.
5656 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
5757 SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1
5858 through 5 of this act may be cited as the "Renewable Energy
5959 Production Tax Act".
6060 SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the
6161 Renewable Energy Production Tax Act:
6262 A. "department" means the taxation and revenue
6363 .229155.2 underscored material = new
6464 [bracketed material] = delete
6565 1
6666 2
6767 3
6868 4
6969 5
7070 6
7171 7
7272 8
7373 9
7474 10
7575 11
7676 12
7777 13
7878 14
7979 15
8080 16
8181 17
8282 18
8383 19
8484 20
8585 21
8686 22
8787 23
8888 24
8989 25
9090 department;
9191 B. "generating facility" means a facility that
9292 produces electricity by the use of renewable energy resources;
9393 and
9494 C. "renewable energy resource" means solar, wind,
9595 hydropower, geothermal or biomass used as an energy resource.
9696 As used in this subsection, "biomass" includes agriculture or
9797 animal waste, small diameter timber, salt cedar and other
9898 phreatophyte or woody vegetation removed from river basins or
9999 watersheds in New Mexico, landfill gas and anaerobically
100100 digested waste biomass.
101101 SECTION 3. [NEW MATERIAL] IMPOSITION OF TAX--RATE--
102102 TAXABLE VALUE--DENOMINATION AS "RENEWABLE ENERGY PRODUCTION
103103 TAX".--
104104 A. For the privilege of generating electricity from
105105 renewable energy resources, there is imposed on a generating
106106 facility an excise tax equal to three and three-fourths percent
107107 of the taxable value of each megawatt-hour, or portion thereof,
108108 of electricity generated from renewable energy resources in
109109 this state.
110110 B. The taxable value for electricity generated from
111111 renewable energy resources shall be the wholesale value of
112112 electricity established by the United States energy information
113113 administration for the southwest regional wholesale market.
114114 The taxable event occurs when the electricity is generated.
115115 .229155.2
116116 - 2 - underscored material = new
117117 [bracketed material] = delete
118118 1
119119 2
120120 3
121121 4
122122 5
123123 6
124124 7
125125 8
126126 9
127127 10
128128 11
129129 12
130130 13
131131 14
132132 15
133133 16
134134 17
135135 18
136136 19
137137 20
138138 21
139139 22
140140 23
141141 24
142142 25
143143 The wholesale value shall be the monthly average wholesale
144144 price for the month in which the taxable event occurs.
145145 C. The tax imposed by this section shall be known
146146 as the "renewable energy production tax".
147147 SECTION 4. [NEW MATERIAL] EXEMPTIONS.--
148148 A. Exempted from the renewable energy production
149149 tax is electricity produced from renewable energy resources by:
150150 (1) the United States or any agency,
151151 department or instrumentality thereof;
152152 (2) the state of New Mexico or any political
153153 subdivision thereof;
154154 (3) any Indian nation, tribe or pueblo from
155155 activities or transactions occurring on its sovereign
156156 territory; or
157157 (4) any foreign nation or agency,
158158 instrumentality or political subdivision thereof, but only when
159159 required by a treaty in force to which the United States is a
160160 party.
161161 B. Exempted from the renewable energy production
162162 tax is electricity produced from renewable energy resources for
163163 the personal consumption of the producer, including any excess
164164 production of electricity not consumed by the producer that
165165 does not exceed five hundred kilowatt-hours in a twenty-four-
166166 hour period.
167167 SECTION 5. [NEW MATERIAL] DATE PAYMENT DUE.--The tax
168168 .229155.2
169169 - 3 - underscored material = new
170170 [bracketed material] = delete
171171 1
172172 2
173173 3
174174 4
175175 5
176176 6
177177 7
178178 8
179179 9
180180 10
181181 11
182182 12
183183 13
184184 14
185185 15
186186 16
187187 17
188188 18
189189 19
190190 20
191191 21
192192 22
193193 23
194194 24
195195 25
196196 imposed by the Renewable Energy Production Tax Act is to be
197197 paid on or before the twenty-fifth day of the month following
198198 the month in which the taxable event occurs.
199199 SECTION 6. Section 7-1-2 NMSA 1978 (being Laws 1965,
200200 Chapter 248, Section 2, as amended) is amended to read:
201201 "7-1-2. APPLICABILITY.--The Tax Administration Act
202202 applies to and governs:
203203 A. the administration and enforcement of the
204204 following taxes or tax acts as they now exist or may hereafter
205205 be amended:
206206 (1) Income Tax Act;
207207 (2) Withholding Tax Act;
208208 (3) Oil and Gas Proceeds and Pass-Through
209209 Entity Withholding Tax Act;
210210 (4) Gross Receipts and Compensating Tax Act,
211211 Interstate Telecommunications Gross Receipts Tax Act and Leased
212212 Vehicle Gross Receipts Tax Act;
213213 (5) Liquor Excise Tax Act;
214214 (6) Local Liquor Excise Tax Act;
215215 (7) any municipal local option gross receipts
216216 tax or municipal compensating tax;
217217 (8) any county local option gross receipts tax
218218 or county compensating tax;
219219 (9) Special Fuels Supplier Tax Act;
220220 (10) Gasoline Tax Act;
221221 .229155.2
222222 - 4 - underscored material = new
223223 [bracketed material] = delete
224224 1
225225 2
226226 3
227227 4
228228 5
229229 6
230230 7
231231 8
232232 9
233233 10
234234 11
235235 12
236236 13
237237 14
238238 15
239239 16
240240 17
241241 18
242242 19
243243 20
244244 21
245245 22
246246 23
247247 24
248248 25
249249 (11) petroleum products loading fee, which fee
250250 shall be considered a tax for the purpose of the Tax
251251 Administration Act;
252252 (12) Alternative Fuel Tax Act;
253253 (13) Cigarette Tax Act;
254254 (14) Estate Tax Act;
255255 (15) Railroad Car Company Tax Act;
256256 (16) Investment Credit Act, rural job tax
257257 credit, Laboratory Partnership with Small Business Tax Credit
258258 Act, Technology Jobs and Research and Development Tax Credit
259259 Act, Film Production Tax Credit Act, Affordable Housing Tax
260260 Credit Act and high-wage jobs tax credit;
261261 (17) Corporate Income and Franchise Tax Act;
262262 (18) Uniform Division of Income for Tax
263263 Purposes Act;
264264 (19) Multistate Tax Compact;
265265 (20) Tobacco Products Tax Act;
266266 (21) the telecommunications relay service
267267 surcharge imposed by Section 63-9F-11 NMSA 1978, which
268268 surcharge shall be considered a tax for the purposes of the Tax
269269 Administration Act;
270270 (22) the Insurance Premium Tax Act;
271271 (23) the Health Care Quality Surcharge Act;
272272 [and]
273273 (24) the Cannabis Tax Act;
274274 .229155.2
275275 - 5 - underscored material = new
276276 [bracketed material] = delete
277277 1
278278 2
279279 3
280280 4
281281 5
282282 6
283283 7
284284 8
285285 9
286286 10
287287 11
288288 12
289289 13
290290 14
291291 15
292292 16
293293 17
294294 18
295295 19
296296 20
297297 21
298298 22
299299 23
300300 24
301301 25
302302 (25) the Health Care Delivery and Access Act;
303303 provided that the contingency pursuant to Laws 2024, Chapter
304304 41, Section 14 is met; and
305305 (26) the Renewable Energy Production Tax Act;
306306 B. the administration and enforcement of the
307307 following taxes, surtaxes, advanced payments or tax acts as
308308 they now exist or may hereafter be amended:
309309 (1) Resources Excise Tax Act;
310310 (2) Severance Tax Act;
311311 (3) any severance surtax;
312312 (4) Oil and Gas Severance Tax Act;
313313 (5) Oil and Gas Conservation Tax Act;
314314 (6) Oil and Gas Emergency School Tax Act;
315315 (7) Oil and Gas Ad Valorem Production Tax Act;
316316 (8) Natural Gas Processors Tax Act;
317317 (9) Oil and Gas Production Equipment Ad
318318 Valorem Tax Act;
319319 (10) Copper Production Ad Valorem Tax Act;
320320 (11) any advance payment required to be made
321321 by any act specified in this subsection, which advance payment
322322 shall be considered a tax for the purposes of the Tax
323323 Administration Act;
324324 (12) Enhanced Oil Recovery Act;
325325 (13) Natural Gas and Crude Oil Production
326326 Incentive Act; and
327327 .229155.2
328328 - 6 - underscored material = new
329329 [bracketed material] = delete
330330 1
331331 2
332332 3
333333 4
334334 5
335335 6
336336 7
337337 8
338338 9
339339 10
340340 11
341341 12
342342 13
343343 14
344344 15
345345 16
346346 17
347347 18
348348 19
349349 20
350350 21
351351 22
352352 23
353353 24
354354 25
355355 (14) intergovernmental production tax credit
356356 and intergovernmental production equipment tax credit;
357357 C. the administration and enforcement of the
358358 following taxes, surcharges, fees or acts as they now exist or
359359 may hereafter be amended:
360360 (1) Weight Distance Tax Act;
361361 (2) the workers' compensation fee authorized
362362 by Section 52-5-19 NMSA 1978, which fee shall be considered a
363363 tax for purposes of the Tax Administration Act;
364364 (3) Uniform Unclaimed Property Act (1995);
365365 (4) 911 emergency surcharge and the network
366366 and database surcharge, which surcharges shall be considered
367367 taxes for purposes of the Tax Administration Act;
368368 (5) the solid waste assessment fee authorized
369369 by the Solid Waste Act, which fee shall be considered a tax for
370370 purposes of the Tax Administration Act;
371371 (6) the water conservation fee imposed by
372372 Section 74-1-13 NMSA 1978, which fee shall be considered a tax
373373 for the purposes of the Tax Administration Act; and
374374 (7) the gaming tax imposed pursuant to the
375375 Gaming Control Act; and
376376 D. the administration and enforcement of all other
377377 laws, with respect to which the department is charged with
378378 responsibilities pursuant to the Tax Administration Act, but
379379 only to the extent that the other laws do not conflict with the
380380 .229155.2
381381 - 7 - underscored material = new
382382 [bracketed material] = delete
383383 1
384384 2
385385 3
386386 4
387387 5
388388 6
389389 7
390390 8
391391 9
392392 10
393393 11
394394 12
395395 13
396396 14
397397 15
398398 16
399399 17
400400 18
401401 19
402402 20
403403 21
404404 22
405405 23
406406 24
407407 25
408408 Tax Administration Act."
409409 SECTION 7. A new section of the Tax Administration Act is
410410 enacted to read:
411411 "[NEW MATERIAL] DISTRIBUTION--RENEWABLE ENERGY PRODUCTION
412412 TAX.--A distribution pursuant to Section 7-1-6.1 NMSA 1978
413413 shall be made to the severance tax permanent fund equal to the
414414 net receipts attributable to the renewable energy production
415415 tax."
416416 SECTION 8. Section 7-1-8.8 NMSA 1978 (being Laws 2019,
417417 Chapter 87, Section 2, as amended) is amended to read:
418418 "7-1-8.8. INFORMATION THAT MAY BE REVEALED TO OTHER STATE
419419 AND LEGISLATIVE AGENCIES.--An employee of the department may
420420 reveal confidential return information to the following
421421 agencies; provided that a person who receives the information
422422 on behalf of the agency shall be subject to the penalties in
423423 Section 7-1-76 NMSA 1978 if the person fails to maintain the
424424 confidentiality required:
425425 A. a committee of the legislature for a valid
426426 legislative purpose, return information concerning any tax or
427427 fee imposed pursuant to the Cigarette Tax Act;
428428 B. the attorney general, return information
429429 acquired pursuant to the Cigarette Tax Act for purposes of
430430 Section 6-4-13 NMSA 1978 and the master settlement agreement
431431 defined in Section 6-4-12 NMSA 1978;
432432 C. the commissioner of public lands, return
433433 .229155.2
434434 - 8 - underscored material = new
435435 [bracketed material] = delete
436436 1
437437 2
438438 3
439439 4
440440 5
441441 6
442442 7
443443 8
444444 9
445445 10
446446 11
447447 12
448448 13
449449 14
450450 15
451451 16
452452 17
453453 18
454454 19
455455 20
456456 21
457457 22
458458 23
459459 24
460460 25
461461 information for use in auditing that pertains to rentals,
462462 royalties, fees and other payments due the state under land
463463 sale, land lease or other land use contracts;
464464 D. the secretary of [human services ] health care
465465 authority or the secretary's delegate under a written agreement
466466 with the department:
467467 (1) the last known address with date of all
468468 names certified to the department as being absent parents of
469469 children receiving public financial assistance, but only for
470470 the purpose of enforcing the support liability of the absent
471471 parents by the child support enforcement division or any
472472 successor organizational unit;
473473 (2) return information needed for reports
474474 required to be made to the federal government concerning the
475475 use of federal funds for low-income working families;
476476 (3) return information of low-income taxpayers
477477 for the limited purpose of outreach to those taxpayers;
478478 provided that the [human services department ] health care
479479 authority shall pay the department for expenses incurred by the
480480 department to derive the information requested by the [human
481481 services department] health care authority if the information
482482 requested is not readily available in reports for which the
483483 department's information systems are programmed;
484484 (4) return information required to administer
485485 the Health Care Quality Surcharge Act; [and ]
486486 .229155.2
487487 - 9 - underscored material = new
488488 [bracketed material] = delete
489489 1
490490 2
491491 3
492492 4
493493 5
494494 6
495495 7
496496 8
497497 9
498498 10
499499 11
500500 12
501501 13
502502 14
503503 15
504504 16
505505 17
506506 18
507507 19
508508 20
509509 21
510510 22
511511 23
512512 24
513513 25
514514 (5) return information in accordance with the
515515 provisions of the Easy Enrollment Act; and
516516 (6) return information in accordance with the
517517 Health Care Delivery and Access Act; provided that the
518518 contingency pursuant to Laws 2024, Chapter 41, Section 14 is
519519 met;
520520 E. the department of information technology, by
521521 electronic media, a database updated quarterly that contains
522522 the names, addresses, county of address and taxpayer
523523 identification numbers of New Mexico personal income tax
524524 filers, but only for the purpose of producing the random jury
525525 list for the selection of petit or grand jurors for the state
526526 courts pursuant to Section 38-5-3 NMSA 1978;
527527 F. the state courts, the random jury lists produced
528528 by the department of information technology under Subsection E
529529 of this section;
530530 G. the director of the New Mexico department of
531531 agriculture or the director's authorized representative, upon
532532 request of the director or representative, the names and
533533 addresses of all gasoline or special fuel distributors,
534534 wholesalers and retailers;
535535 H. the public regulation commission, return
536536 information with respect to the Corporate Income and Franchise
537537 Tax Act required to enable the commission to carry out its
538538 duties;
539539 .229155.2
540540 - 10 - underscored material = new
541541 [bracketed material] = delete
542542 1
543543 2
544544 3
545545 4
546546 5
547547 6
548548 7
549549 8
550550 9
551551 10
552552 11
553553 12
554554 13
555555 14
556556 15
557557 16
558558 17
559559 18
560560 19
561561 20
562562 21
563563 22
564564 23
565565 24
566566 25
567567 I. the state racing commission, return information
568568 with respect to the state, municipal and county gross receipts
569569 taxes paid by racetracks;
570570 J. the gaming control board, tax returns of license
571571 applicants and their affiliates as provided in Subsection E of
572572 Section 60-2E-14 NMSA 1978;
573573 K. the director of the workers' compensation
574574 administration or to the director's representatives authorized
575575 for this purpose, return information to facilitate the
576576 identification of taxpayers that are delinquent or noncompliant
577577 in payment of fees required by Section 52-1-9.1 or 52-5-19 NMSA
578578 1978;
579579 L. the secretary of workforce solutions or the
580580 secretary's delegate, return information for use in enforcement
581581 of unemployment insurance collections pursuant to the terms of
582582 a written reciprocal agreement entered into by the department
583583 with the secretary of workforce solutions for exchange of
584584 information;
585585 M. the New Mexico finance authority, information
586586 with respect to the amount of municipal and county gross
587587 receipts taxes collected by municipalities and counties
588588 pursuant to any local option municipal or county gross receipts
589589 taxes imposed, and information with respect to the amount of
590590 governmental gross receipts taxes paid by every agency,
591591 institution, instrumentality or political subdivision of the
592592 .229155.2
593593 - 11 - underscored material = new
594594 [bracketed material] = delete
595595 1
596596 2
597597 3
598598 4
599599 5
600600 6
601601 7
602602 8
603603 9
604604 10
605605 11
606606 12
607607 13
608608 14
609609 15
610610 16
611611 17
612612 18
613613 19
614614 20
615615 21
616616 22
617617 23
618618 24
619619 25
620620 state pursuant to Section 7-9-4.3 NMSA 1978;
621621 N. the superintendent of insurance, return
622622 information with respect to the premium tax and the health
623623 insurance premium surtax;
624624 O. the secretary of finance and administration or
625625 the secretary's designee, return information concerning a
626626 credit pursuant to the Film Production Tax Credit Act;
627627 P. the secretary of economic development or the
628628 secretary's designee, return information concerning a credit
629629 pursuant to the Film Production Tax Credit Act;
630630 Q. the secretary of public safety or the
631631 secretary's designee, return information concerning the Weight
632632 Distance Tax Act;
633633 R. the secretary of transportation or the
634634 secretary's designee, return information concerning the Weight
635635 Distance Tax Act;
636636 S. the secretary of energy, minerals and natural
637637 resources or the secretary's designee, return information
638638 concerning tax credits or deductions for which eligibility is
639639 certified or otherwise determined by the secretary or the
640640 secretary's designee;
641641 T. the secretary of environment or the secretary's
642642 designee, return information concerning tax credits for which
643643 eligibility is certified or otherwise determined by the
644644 secretary or the secretary's designee; and
645645 .229155.2
646646 - 12 - underscored material = new
647647 [bracketed material] = delete
648648 1
649649 2
650650 3
651651 4
652652 5
653653 6
654654 7
655655 8
656656 9
657657 10
658658 11
659659 12
660660 13
661661 14
662662 15
663663 16
664664 17
665665 18
666666 19
667667 20
668668 21
669669 22
670670 23
671671 24
672672 25
673673 U. the secretary of state or the secretary's
674674 designee, taxpayer information required to maintain voter
675675 registration records and as otherwise provided in the Election
676676 Code."
677677 SECTION 9. Laws 2024, Chapter 41, Section 13 is amended
678678 to read:
679679 "SECTION 13. DELAYED REPEAL.--Sections 1 through 7, 9 and
680680 11 of this act are repealed effective July 1, 2030."
681681 SECTION 10. REPEALING CERTAIN SECTIONS OF LAWS 2024.--
682682 Laws 2024, Chapter 41, Sections 8 and 10 are repealed.
683683 SECTION 11. APPLICABILITY.--The provisions of this act
684684 apply to the production of electricity from renewable energy
685685 resources beginning on and after January 1, 2026.
686686 SECTION 12. EFFECTIVE DATE.--The effective date of the
687687 provisions of Sections 1 through 5 and 7 of this act is January
688688 1, 2026.
689689 - 13 -
690690 .229155.2