The list below contains summaries of all New Mexico incentives and laws related to Ethanol.
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 April 2012, funding for this program is unavailable. (Reference New Mexico Statutes 71-7-1 to 71-7-7)
Point of Contact
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 Indian nation, tribe or pueblo purposes, is exempt from the state excise tax. (Reference New Mexico Statutes 7-16B-5)
Under the Green Jobs Act, the New Mexico Higher Education Department (Department) must establish a state plan for the development of green jobs training programs focusing on rural and tribal communities, including biofuel production and distribution. In addition, the Department must develop a state research program in partnership with the Workforce Solutions Department to collect labor market data for renewable energy industries. The New Mexico Green Jobs Portal was created to support job seekers through education and career development resources and the New Mexico Department of Finance and Administration administers a green jobs fund to support the programs. (Reference New Mexico Statutes 9-15D)
The Green Jobs Cabinet prepared a statewide strategic plan for clean energy and clean technology economic development and job creation, to include biofuels. The New Mexico Department of Agriculture must 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)