The list below contains summaries of all New Mexico incentives and laws related to Biodiesel.
A tax credit against the state corporate income tax liability is available for each gallon of blended biodiesel fuel containing a minimum of 2% biodiesel (B2), as long as the state special fuel excise tax was paid on the fuel. The credit amounts are as follows:
(Reference New Mexico Statutes 7-2A-23)
A tax credit is available for up to 30% of the cost of purchasing or installing equipment used to produce biodiesel blends containing at least 2% biodiesel (B2). The tax credit is limited to $50,000 per facility and is claimed against gross receipts tax or compensating tax. Individuals or organizations must apply for and obtain a certificate of eligibility from the New Mexico Energy, Minerals, and Natural Resources Department before claiming the credit. (Reference New Mexico Statutes 7-9-79.2)
The cost associated with purchasing qualified biomass feedstocks to be processed into biofuels may be deducted in computing the compensating tax due under the New Mexico Gross Receipts and Compensating Tax Act. For the purpose of this incentive, biofuels include ethanol, methanol, methane, and hydrogen. (Reference New Mexico Statutes 7-9-98)
The New Mexico Energy, Minerals, and Natural Resources Department administers the Clean Energy Grants Program, which, provides grants for projects using clean energy technologies (including alternative fuel vehicles and fueling infrastructure) and projects that provide clean energy education, technical assistance, and training programs. These grants are provided on a competitive basis to qualifying entities such as municipalities and county governments, state agencies, state universities, public schools, post-secondary educational institutions, and Indian nations, tribes, and pueblos. As of February 2011, funding for this program is unavailable. (Reference New Mexico Statutes 71-7-1 to 71-7-7)
Points of Contact
Jeremy Lewis
Clean Energy Specialist
Energy, Mineral, and Natural Resources Department, Energy Conservation and Management Division
Phone: (505) 476-3323
Fax: (505) 476-3322
jeremy.lewis@state.nm.us
Colin Messer
Program Manager
Energy, Mineral, and Natural Resources Department, Energy Conservation and Management Division
Phone: (505) 476-3314
Fax: (505) 476-3322
colinj.messer@state.nm.us
Alternative fuel distributed by or used for U.S. government, state government, or an Indian nation, tribe or pueblo purposes, is exempt from the state excise tax. (Reference New Mexico Statutes 7-16B-5)
After July 1, 2010, all diesel fuel sold to state agencies, political subdivisions of the state, and public schools for use in on-road motor vehicles must contain at least 5% biodiesel (B5). After July 1, 2012, all diesel fuel sold to consumers for use in on-road motor vehicles must contain at least B5. The New Mexico Department of Agriculture and the Energy, Minerals, and Natural Resources Department may suspend these requirements for up to six months if there are insufficient amounts of biodiesel available or if the price of biodiesel significantly exceeds the price of diesel fuel for at least two months. (Reference New Mexico Statutes 57-19-28 and 57-19-29)
Under the Green Jobs Act, the New Mexico Higher Education Department must develop a state plan for the development of green jobs training programs focusing on rural and tribal communities. These programs will train individuals to work in green industries, including biofuel production and distribution. The New Mexico Department of Finance and Administration will administer a green jobs fund to support the program. (Reference New Mexico Statutes 9-15D)
The Green Jobs Cabinet was directed to prepare a statewide strategic plan for clean energy and clean technology economic development and job creation, to include biofuels. Additionally, the New Mexico Department of Agriculture was directed to work with the biofuels industry, state universities, national laboratories, and industry groups to evaluate the economic opportunities of biofuel production in the state. Toward a New Mexico State Plan for Biofuels Leadership, published in May 2010, provides recommendations to grow and develop the biofuels sector in the state. (Reference Executive Order 2009-002, 2009, and Executive Order 2010-001, 2010)
A minimum of 75% of state government and educational institution fleet vehicles purchased must be HEVs or bi-fuel or dedicated AFVs, which includes plug-in electric vehicles. Vehicles must meet or exceed the federal corporate average fuel economy standards. Certified law enforcement pursuit vehicles and emergency vehicles are exempt from this requirement. The New Mexico Energy, Minerals and Natural Resources Department may grant additional exemptions based on the availability and suitability of vehicles, as well as fuel availability and cost.
Up to $5 million is authorized for a revolving loan fund for AFV acquisitions by state agencies, political subdivisions, and educational institutions. The maximum amount of a loan per vehicle must not exceed the actual cost of acquiring the vehicle or $3,000, whichever is less. Projected fuel cost savings from using the AFV is considered when the loan repayment schedule is developed.
(Reference New Mexico Statutes 13-1B)
The definition of an alternative fuel includes natural gas, liquefied petroleum gas, electricity, hydrogen, fuel mixtures containing not less than 85% ethanol or methanol, and fuel mixtures containing not less than 20% vegetable oil, or a water-phased hydrocarbon fuel emulsion in an amount not less than 20% by volume. Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or animal fats and meets current ASTM biodiesel standards. (Reference New Mexico Statutes 13-1B-2 and 57-19-27)
The excise tax imposed on an alternative fuel distributed in New Mexico is $0.12 per gallon. Alternative fuels subject to the excise tax include liquefied petroleum gas or propane, compressed natural gas, and liquefied natural gas. Alternative fuel purchased for distribution is not subject to the excise tax at the time of purchase or acquisition, but the tax is due on any alternative fuel at the time it is dispensed or delivered into the tank of a motor vehicle. Alternative fuel distributors must be licensed by the state.
In lieu of the per gallon tax, owners of alternative fuel vehicles with a gross vehicle weight rating (GVWR) not exceeding 54,000 pounds (lbs.) may pay an annual tax according to the following schedule:
| GVWR | Annual Tax |
|---|---|
| 0 to 6,000 lbs. | $60 |
| 6,001 to 16,000 lbs. | $100 |
| 16,001 to 26,000 lbs. | $300 |
| 26,001 to 40,000 lbs. | $700 |
| 40,001 to 54,000 lbs. | $1,100 |
(Reference New Mexico Statutes 7-16B)