New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 19 - RENEWABLE ENERGY PRODUCTION TAX CREDIT › Section 3.13.19.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. "Applicant"
				means a business entity that holds title to a qualifying energy generator or
				leases property upon which a qualified energy generator operates from a county
				or municipality pursuant to an industrial revenue bond, or plans to develop a
				qualified energy generator and will hold title to the qualified energy
				generator or lease property upon which the qualified energy generator operates
				from a county or municipality pursuant to an industrial revenue bond at the
				time the division certifies that the facility is a qualified energy generator,
				and that applies to receive the renewable energy production tax credit pursuant
				to this part for itself or on other taxpayers' behalf.
B. "Biomass" means agricultural or animal
				waste; thinnings from trees less than 15 inches in diameter; slash and brush;
				lumber mill or sawmill residues; and salt cedar and other phreatophytes removed
				from watersheds or river basins;
C.
				"Confidential information" means information included in the renewable energy
				production tax credit application package or that the department requires the
				applicant to submit as part of the approval process that the applicant requests
				in writing to be held confidential.
D. "Department" means the energy, minerals
				and natural resources department.
E. "Director" means the director or head of
				the department's energy conservation and management division.
F. "Division" means the department's energy
				conservation and management division.
G. "Five percent ownership" means New Mexico
				corporate income taxpayers that individually or collectively, directly or
				indirectly, own at least five percent of a qualified energy generator or of the
				total capitalized cost to construct a qualified energy generator; and are
				entitled to receive at least five percent of cash distributed to owners of the
				qualified energy generator over its useful life.
H. "Generating capacity" means a qualified
				energy generator's nominal rated electrical power output (nameplate capacity)
				in megawatts during optimum resource conditions, as the generator's
				manufacturer specifies. Generating capacity shall be at least 10 megawatts. If
				the prevailing resource conditions at a project site are insufficient for a
				qualified energy generator to attain full nameplate capacity output at the time
				the division issues the certification, the power output shall be that which
				corresponds to at least 10 megawatts nominal rating according to the equipment
				manufacturer's published performance ratings for those prevailing
				conditions.
I. "Interconnection
				agreement" means an agreement allowing the applicant to interconnect the
				qualified energy generator, of a specified type and size, to a suitable
				electric transmission or distribution line.
J. "Land rights agreement" means an agreement
				providing the applicant with control of land and the rights necessary to
				construct and operate a qualified energy generator.
K. "Notice of allocation" means a form the
				division prescribes that an applicant completes indicating the allocation of
				its or another entity's right to claim the tax credit to one or more taxpayers
				and each taxpayer's interest in the qualified energy generator.
L. "Power purchase agreement" means an
				agreement that binds an applicant to provide power at a specified price and a
				buyer to purchase power from the qualified energy generator.
M. "Project finance agreement" means an
				agreement that binds a capable entity to provide the financing necessary for a
				qualified energy generator's construction.
N. "Qualified energy generator" means a
				facility with at least 10 megawatts generating capacity located in New Mexico
				that produces electricity using a qualified energy resource and that sells
				electricity to an unrelated person.
O. "Qualified energy resource" means a
				resource that generates electrical energy by means of a fluidized bed
				technology or similar low-emissions technology or a zero-emissions generation
				technology that has substantial long-term production potential and that uses
				only the following energy sources: solar light, solar heat, wind, or
				biomass.
P. "Renewable energy
				production tax credit application package" or "application package" means the
				application documents submitted by an applicant to the division for
				certification to receive the renewable energy production tax credit.
Q. "Secretary" means the head of the
				department.
R. "Tax credit" means
				the renewable energy production tax credit.
S. "Unrelated person" means a person who is
				not a partner or joint venture participant who owns more than 50 percent of the
				profit interest or capital interest in the partnership or joint venture;
				shareholder who owns more than 50 percent of the shares, subsidiary, or parent
				company; or a trade or business that is under common control. If a corporation
				is a member of an affiliated group of corporations filing a consolidated tax
				return, the division will treat the corporation as selling electricity to an
				unrelated person if another member of the affiliated group sells the
				electricity to the person.