Form Rpd-41349 - Advanced Energy Gross Receipts Tax Deduction (Report A) (Page 2 of 3) in pdf

RPD-41349

New Mexico Taxation and Revenue Department

Rev. 2/2/2012

Advanced Energy Deduction Report

Instructions

Page 1 of 2

WHO MUST REPORT. Taxpayers reporting an advanced en-

owner must report any compensating tax deduction due on

ergy deduction from either gross receipts tax or compensating

the CRS-1 Form, and also attach Form RPD-41349-Report

tax must file Form RPD-41349-Report A, Advanced Energy

B, Advanced Energy Compensating Tax Deduction Report,

Gross Receipts Tax Deduction Report, or RPD-41349-Report

stating the amount of advanced energy deductions reported

B, Advanced Energy Compensating Tax Deduction Report, as

on the CRS-1 Form. The amount of the advanced energy

an informational attachment to the CRS-1 Form, Combined

deduction taken prior to calculating compensating tax re-

duces the final compensating tax amount due reported on

Report System.

line 3. Report deductions for tangible personal property only.

File Report A, Advanced Energy Gross Receipts Tax Deduc-

Services do not qualify for the advanced energy compensat-

tion Report, if you accepted a Type 10 Nontaxable transaction

ing tax deduction. The compensating tax rate is 5.125% on

certificate (NTTC) from an interest owner for the purchase

tangible personal property.

or lease of tangible personal property or services that are

eligible generation plant costs. Receipts from selling or leas-

Restrictions: These deductions are available for a 10-year

ing tangible personal property or services that are eligible

period for purchases and 25-year period for leases, from the

advanced energy generation plant costs to a person that holds

year development of the qualified generating facility begins

an interest in a qualified generation facility are deductible

and expenditures are made or until the maximum combined

from gross receipts taxes. The seller or lessor must attach a

benefit allowed has been taken. The maximum combined

completed Form RPD-41349-Report A to their CRS-1 Form

benefit allowed from approved advanced energy tax credits,

for the report period in which the deduction is taken.

advanced energy gross receipts tax deductions and ad-

vanced energy compensating tax deductions for a qualified

File Report B, Advanced Energy Compensating Tax Deduction

generating facility may not exceed $60,000,000. You must

Report, if you are the interest owner and you purchased or

track the deductions taken and advanced energy tax credits

leased tangible personal property that are eligible advanced

approved. Once your deductions and approved tax credits

energy generation plant costs (services do not qualify). The

have reached the $60,000,000 maximum benefit, you must

value of eligible generation plant costs from the sale or lease

stop making tax free purchases of eligible generation plant

of tangible personal property to a person that holds an interest

costs using the advanced energy gross receipts tax deduc-

in a qualified generating facility may be deducted in computing

tions and advanced energy compensating tax deductions.

the compensating tax due. The interest owner must attach a

The interest owner who has obtained Type 10 NTTCs must

completed Form RPD-41349-Report B to their CRS-1 Form

then return those NTTCs to the Department.

for the report period in which the deduction is taken.

Expenditures for which an advanced energy gross receipts

ADVANCED ENERGY TAX CREDITS: An interest owner

or compensating tax deduction were claimed are not eligible

may also be eligible to claim a tax credit for purchases of

for any other deduction or credit against personal income tax,

eligible expenses for a qualified generating facility in lieu of

corporate income tax, compensating tax, gross receipts tax

the Advanced Energy Deduction. See Forms RPD-41333,

or withholding tax.

Advanced Energy Tax Credit Application, and RPD-41334,

How to Complete the Form: Cut along the dotted line and

Advanced Energy Tax Credit Claim Form, for details.

submit the completed top portion of the page if filing Report

About the Gross Receipts Tax Deduction: The owner of

A, or the completed bottom portion of the page if filing Report

the interest in the eligible qualified generating facility must

B, with your CRS-1 Form and any applicable payment by the

execute a Type 10 NTTC to the seller or lessor. In order to

25th of the month following the end of the report period. The

obtain a Type 10 NTTC, the interest owner must first obtain

information at the top of Report A or Report B, must be the

a certificate of eligibility from the New Mexico Environment

information for the business reporting the deduction. Mail to

Department (NMED). The Type 10 NTTCs may only be

Taxation and Revenue Department, P.O. Box 25128, Santa

obtained by the interest owner who has been issued the

Fe, New Mexico 87504-5128. For further assistance call

certificate of eligibility. The seller or lessor that accepts the

(505) 476-3683.

Type 10 NTTC must report the deduction on the CRS-1 Form,

RECAPTURE: If the New Mexico Environment Department

Combined Report System, and if this deduction is taken

(NMED) issues a certificate of eligibility to a taxpayer stating

also attach Form RPD-41349- Report A, Advanced Energy

that the taxpayer holds an interest in a qualified generating

Gross Receipts Tax Deduction Report, stating the amount

of advanced energy deductions taken. The amount of the

facility and the taxpayer does not sequester or control car-

advanced energy deduction claimed against gross receipts

bon dioxide emissions to the extent required by January 1,

tax should be reported in Column E on the CRS-1 Form along

2017, or 18 months after the commercial operation date of

with other allowable deductions.

the qualified generating facility, the taxpayer’s certification

as a qualified generating facility shall be revoked by NMED

About the Compensating Tax Deduction: The owner of the

interest in the eligible qualified generating facility must first

and the taxpayer shall refund to the state tax deductions

obtain a certificate of eligibility from the NMED to claim the

granted. If the taxpayer demonstrates to the NMED that the

advanced energy compensating tax deduction. The interest

taxpayer made every effort to sequester or control carbon

Form Rpd-41349 - Advanced Energy Gross Receipts Tax Deduction (Report A) Page 2

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