RENEWABLE ENERGY PRODUCTION TAX ACT

HB 45 would impose a 3.75% tax on electricity generated from renewable sources (like solar, wind, or biomass) in New Mexico, calculated based on the monthly wholesale market price. This tax applies to commercial renewable energy facilities but exempts government entities, tribal lands, and small-scale personal use (under 500 kWh/day). Revenue from the tax would be directed to the Severance Tax Permanent Fund, as specified in the bill’s amendments to existing tax laws. The legislation aims to create a dedicated funding stream for renewable energy projects through a market-based tax on electricity generation.