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HOUSE BILL 45
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
John Block
AN ACT
RELATING TO TAXATION; ENACTING THE RENEWABLE ENERGY PRODUCTION
TAX ACT; IMPOSING AN EXCISE TAX ON ELECTRICITY GENERATED FROM
RENEWABLE ENERGY RESOURCES; DISTRIBUTING REVENUE FROM THE TAX
TO THE SEVERANCE TAX PERMANENT FUND; AMENDING AND REPEALING
CERTAIN SECTIONS OF THE NMSA 1978 AND LAWS 2024, CHAPTER 41
THAT ENACTED THE HEALTH CARE DELIVERY AND ACCESS ACT TO CONFORM
THE CONTINGENT EFFECTIVE DATE AND DELAYED REPEAL OF THAT ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1
through 5 of this act may be cited as the "Renewable Energy
Production Tax Act".
SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the
Renewable Energy Production Tax Act:
A. "department" means the taxation and revenue
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department;
B. "generating facility" means a facility that
produces electricity by the use of renewable energy resources;
and
C. "renewable energy resource" means solar, wind,
hydropower, geothermal or biomass used as an energy resource.
As used in this subsection, "biomass" includes agriculture or
animal waste, small diameter timber, salt cedar and other
phreatophyte or woody vegetation removed from river basins or
watersheds in New Mexico, landfill gas and anaerobically
digested waste biomass.
SECTION 3. [NEW MATERIAL] IMPOSITION OF TAX--RATE--
TAXABLE VALUE--DENOMINATION AS "RENEWABLE ENERGY PRODUCTION
TAX".--
A. For the privilege of generating electricity from
renewable energy resources, there is imposed on a generating
facility an excise tax equal to three and three-fourths percent
of the taxable value of each megawatt-hour, or portion thereof,
of electricity generated from renewable energy resources in
this state.
B. The taxable value for electricity generated from
renewable energy resources shall be the wholesale value of
electricity established by the United States energy information
administration for the southwest regional wholesale market.
The taxable event occurs when the electricity is generated.
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The wholesale value shall be the monthly average wholesale
price for the month in which the taxable event occurs.
C. The tax imposed by this section shall be known
as the "renewable energy production tax".
SECTION 4. [NEW MATERIAL] EXEMPTIONS.--
A. Exempted from the renewable energy production
tax is electricity produced from renewable energy resources by:
(1) the United States or any agency,
department or instrumentality thereof;
(2) the state of New Mexico or any political
subdivision thereof;
(3) any Indian nation, tribe or pueblo from
activities or transactions occurring on its sovereign
territory; or
(4) any foreign nation or agency,
instrumentality or political subdivision thereof, but only when
required by a treaty in force to which the United States is a
party.
B. Exempted from the renewable energy production
tax is electricity produced from renewable energy resources for
the personal consumption of the producer, including any excess
production of electricity not consumed by the producer that
does not exceed five hundred kilowatt-hours in a twenty-four-
hour period.
SECTION 5. [NEW MATERIAL] DATE PAYMENT DUE.--The tax
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imposed by the Renewable Energy Production Tax Act is to be
paid on or before the twenty-fifth day of the month following
the month in which the taxable event occurs.
SECTION 6. Section 7-1-2 NMSA 1978 (being Laws 1965,
Chapter 248, Section 2, as amended) is amended to read:
"7-1-2. APPLICABILITY.--The Tax Administration Act
applies to and governs:
A. the administration and enforcement of the
following taxes or tax acts as they now exist or may hereafter
be amended:
(1) Income Tax Act;
(2) Withholding Tax Act;
(3) Oil and Gas Proceeds and Pass-Through
Entity Withholding Tax Act;
(4) Gross Receipts and Compensating Tax Act,
Interstate Telecommunications Gross Receipts Tax Act and Leased
Vehicle Gross Receipts Tax Act;
(5) Liquor Excise Tax Act;
(6) Local Liquor Excise Tax Act;
(7) any municipal local option gross receipts
tax or municipal compensating tax;
(8) any county local option gross receipts tax
or county compensating tax;
(9) Special Fuels Supplier Tax Act;
(10) Gasoline Tax Act;
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(11) petroleum products loading fee, which fee
shall be considered a tax for the purpose of the Tax
Administration Act;
(12) Alternative Fuel Tax Act;
(13) Cigarette Tax Act;
(14) Estate Tax Act;
(15) Railroad Car Company Tax Act;
(16) Investment Credit Act, rural job tax
credit, Laboratory Partnership with Small Business Tax Credit
Act, Technology Jobs and Research and Development Tax Credit
Act, Film Production Tax Credit Act, Affordable Housing Tax
Credit Act and high-wage jobs tax credit;
(17) Corporate Income and Franchise Tax Act;
(18) Uniform Division of Income for Tax
Purposes Act;
(19) Multistate Tax Compact;
(20) Tobacco Products Tax Act;
(21) the telecommunications relay service
surcharge imposed by Section 63-9F-11 NMSA 1978, which
surcharge shall be considered a tax for the purposes of the Tax
Administration Act;
(22) the Insurance Premium Tax Act;
(23) the Health Care Quality Surcharge Act;
[and]
(24) the Cannabis Tax Act;
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(25) the Health Care Delivery and Access Act;
provided that the contingency pursuant to Laws 2024, Chapter
41, Section 14 is met; and
(26) the Renewable Energy Production Tax Act;
B. the administration and enforcement of the
following taxes, surtaxes, advanced payments or tax acts as
they now exist or may hereafter be amended:
(1) Resources Excise Tax Act;
(2) Severance Tax Act;
(3) any severance surtax;
(4) Oil and Gas Severance Tax Act;
(5) Oil and Gas Conservation Tax Act;
(6) Oil and Gas Emergency School Tax Act;
(7) Oil and Gas Ad Valorem Production Tax Act;
(8) Natural Gas Processors Tax Act;
(9) Oil and Gas Production Equipment Ad
Valorem Tax Act;
(10) Copper Production Ad Valorem Tax Act;
(11) any advance payment required to be made
by any act specified in this subsection, which advance payment
shall be considered a tax for the purposes of the Tax
Administration Act;
(12) Enhanced Oil Recovery Act;
(13) Natural Gas and Crude Oil Production
Incentive Act; and
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(14) intergovernmental production tax credit
and intergovernmental production equipment tax credit;
C. the administration and enforcement of the
following taxes, surcharges, fees or acts as they now exist or
may hereafter be amended:
(1) Weight Distance Tax Act;
(2) the workers' compensation fee authorized
by Section 52-5-19 NMSA 1978, which fee shall be considered a
tax for purposes of the Tax Administration Act;
(3) Uniform Unclaimed Property Act (1995);
(4) 911 emergency surcharge and the network
and database surcharge, which surcharges shall be considered
taxes for purposes of the Tax Administration Act;
(5) the solid waste assessment fee authorized
by the Solid Waste Act, which fee shall be considered a tax for
purposes of the Tax Administration Act;
(6) the water conservation fee imposed by
Section 74-1-13 NMSA 1978, which fee shall be considered a tax
for the purposes of the Tax Administration Act; and
(7) the gaming tax imposed pursuant to the
Gaming Control Act; and
D. the administration and enforcement of all other
laws, with respect to which the department is charged with
responsibilities pursuant to the Tax Administration Act, but
only to the extent that the other laws do not conflict with the
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Tax Administration Act."
SECTION 7. A new section of the Tax Administration Act is
enacted to read:
"[NEW MATERIAL] DISTRIBUTION--RENEWABLE ENERGY PRODUCTION
TAX.--A distribution pursuant to Section 7-1-6.1 NMSA 1978
shall be made to the severance tax permanent fund equal to the
net receipts attributable to the renewable energy production
tax."
SECTION 8. Section 7-1-8.8 NMSA 1978 (being Laws 2019,
Chapter 87, Section 2, as amended) is amended to read:
"7-1-8.8. INFORMATION THAT MAY BE REVEALED TO OTHER STATE
AND LEGISLATIVE AGENCIES.--An employee of the department may
reveal confidential return information to the following
agencies; provided that a person who receives the information
on behalf of the agency shall be subject to the penalties in
Section 7-1-76 NMSA 1978 if the person fails to maintain the
confidentiality required:
A. a committee of the legislature for a valid
legislative purpose, return information concerning any tax or
fee imposed pursuant to the Cigarette Tax Act;
B. the attorney general, return information
acquired pursuant to the Cigarette Tax Act for purposes of
Section 6-4-13 NMSA 1978 and the master settlement agreement
defined in Section 6-4-12 NMSA 1978;
C. the commissioner of public lands, return
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information for use in auditing that pertains to rentals,
royalties, fees and other payments due the state under land
sale, land lease or other land use contracts;
D. the secretary of [human services ] health care
authority or the secretary's delegate under a written agreement
with the department:
(1) the last known address with date of all
names certified to the department as being absent parents of
children receiving public financial assistance, but only for
the purpose of enforcing the support liability of the absent
parents by the child support enforcement division or any
successor organizational unit;
(2) return information needed for reports
required to be made to the federal government concerning the
use of federal funds for low-income working families;
(3) return information of low-income taxpayers
for the limited purpose of outreach to those taxpayers;
provided that the [human services department ] health care
authority shall pay the department for expenses incurred by the
department to derive the information requested by the [human
services department] health care authority if the information
requested is not readily available in reports for which the
department's information systems are programmed;
(4) return information required to administer
the Health Care Quality Surcharge Act; [and ]
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(5) return information in accordance with the
provisions of the Easy Enrollment Act; and
(6) return information in accordance with the
Health Care Delivery and Access Act; provided that the
contingency pursuant to Laws 2024, Chapter 41, Section 14 is
met;
E. the department of information technology, by
electronic media, a database updated quarterly that contains
the names, addresses, county of address and taxpayer
identification numbers of New Mexico personal income tax
filers, but only for the purpose of producing the random jury
list for the selection of petit or grand jurors for the state
courts pursuant to Section 38-5-3 NMSA 1978;
F. the state courts, the random jury lists produced
by the department of information technology under Subsection E
of this section;
G. the director of the New Mexico department of
agriculture or the director's authorized representative, upon
request of the director or representative, the names and
addresses of all gasoline or special fuel distributors,
wholesalers and retailers;
H. the public regulation commission, return
information with respect to the Corporate Income and Franchise
Tax Act required to enable the commission to carry out its
duties;
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I. the state racing commission, return information
with respect to the state, municipal and county gross receipts
taxes paid by racetracks;
J. the gaming control board, tax returns of license
applicants and their affiliates as provided in Subsection E of
Section 60-2E-14 NMSA 1978;
K. the director of the workers' compensation
administration or to the director's representatives authorized
for this purpose, return information to facilitate the
identification of taxpayers that are delinquent or noncompliant
in payment of fees required by Section 52-1-9.1 or 52-5-19 NMSA
1978;
L. the secretary of workforce solutions or the
secretary's delegate, return information for use in enforcement
of unemployment insurance collections pursuant to the terms of
a written reciprocal agreement entered into by the department
with the secretary of workforce solutions for exchange of
information;
M. the New Mexico finance authority, information
with respect to the amount of municipal and county gross
receipts taxes collected by municipalities and counties
pursuant to any local option municipal or county gross receipts
taxes imposed, and information with respect to the amount of
governmental gross receipts taxes paid by every agency,
institution, instrumentality or political subdivision of the
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state pursuant to Section 7-9-4.3 NMSA 1978;
N. the superintendent of insurance, return
information with respect to the premium tax and the health
insurance premium surtax;
O. the secretary of finance and administration or
the secretary's designee, return information concerning a
credit pursuant to the Film Production Tax Credit Act;
P. the secretary of economic development or the
secretary's designee, return information concerning a credit
pursuant to the Film Production Tax Credit Act;
Q. the secretary of public safety or the
secretary's designee, return information concerning the Weight
Distance Tax Act;
R. the secretary of transportation or the
secretary's designee, return information concerning the Weight
Distance Tax Act;
S. the secretary of energy, minerals and natural
resources or the secretary's designee, return information
concerning tax credits or deductions for which eligibility is
certified or otherwise determined by the secretary or the
secretary's designee;
T. the secretary of environment or the secretary's
designee, return information concerning tax credits for which
eligibility is certified or otherwise determined by the
secretary or the secretary's designee; and
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U. the secretary of state or the secretary's
designee, taxpayer information required to maintain voter
registration records and as otherwise provided in the Election
Code."
SECTION 9. Laws 2024, Chapter 41, Section 13 is amended
to read:
"SECTION 13. DELAYED REPEAL.--Sections 1 through 7, 9 and
11 of this act are repealed effective July 1, 2030."
SECTION 10. REPEALING CERTAIN SECTIONS OF LAWS 2024.--
Laws 2024, Chapter 41, Sections 8 and 10 are repealed.
SECTION 11. APPLICABILITY.--The provisions of this act
apply to the production of electricity from renewable energy
resources beginning on and after January 1, 2026.
SECTION 12. EFFECTIVE DATE.--The effective date of the
provisions of Sections 1 through 5 and 7 of this act is January
1, 2026.
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