Budget & Taxes (Business Taxes)

HB 113, the Renewable Energy Production Tax Act, imposes a 3.75% excise tax on electricity generated from renewable sources (solar, wind, hydropower, geothermal, or qualifying biomass) at commercial facilities in New Mexico. It applies to electricity sold in the wholesale market, with tax calculated based on the monthly average wholesale price, and requires payment by the 25th of the following month. Revenue from this tax will be directed to the Severance Tax Permanent Fund, and the law exempts government entities, tribal lands, and small-scale personal use (under 500 kWh daily). The tax begins on January 1, 2027, affecting commercial renewable energy producers but not residential or exempt entities.