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

RPD-41349

New Mexico Taxation and Revenue Department

Rev. 2/2/2012

Advanced Energy Deduction Report

Page 2 of 2

Instructions

dioxide emissions to the extent feasible and the facility’s in-

dioxide in a manner that prevents its release into the atmo-

ability to meet the sequestration requirements of a qualified

sphere and may include the use of geologic formations and

generating facility was beyond the facility’s control, NMED

enhanced oil, coal bed methane or natural gas recovery

shall determine, after a public hearing, the amount of the tax

techniques.

credit that should be refunded. NMED, in its determination,

“Solar photovoltaic electric generating facility” means

shall consider the environmental performance of the facility

an electric generating facility with a name-plate capacity of

and the extent to which the inability to meet the sequestra-

one megawatt or more that uses solar photovoltaic energy

tion requirements of a qualified generating facility was in the

to generate electricity.

control of the taxpayer. The refund as determined by NMED

“Solar thermal electric generating facility” means an

shall be paid within 180 days following a final order by NMED.

electric generating facility with a name-plate capacity of one

IMPORTANT DEFINITIONS:

megawatt or more that uses solar thermal energy to gener-

“Eligible generation plant costs” are expenditures for the

ate electricity, including a facility that captures and provides

development and construction of a qualified generating facility

solar energy to a preexisting electric generating facility using

including permitting; site characterization and assessment;

other fuels in part.

engineering; design; carbon dioxide capture, treatment, com-

“Interest in a qualified generating facility” means title to a

pression, transportation and sequestration; site and equipment

qualified generating facility; a lessee's interest in a qualified

acquisition; and fuel supply development used directly and

generating facility; and a county or municipality's interest in

exclusively in a qualified generating facility;

a qualified generating facility when the county or municipal-

Value of “eligible generation plant costs” is the adjusted

ity uses an industrial revenue bond for construction of the

basis established for the qualified generating facility under the

qualified generating facility.

applicable provisions of the Internal Revenue Code of 1986.

“Coal-based electric generating facility” means a new or

For purposes of the advanced energy tax credit, eligible

repowered generating facility and an associated coal gasifica-

generation plant costs must be "Subject to depreciation".

tion facility, if any, that uses coal to generate electricity and

“Subject to depreciation” means the taxpayer’s federal income

that meets the following specifications:

tax return must include a depreciation expense with respect

•

emits the lesser of:

to the eligible generation plant costs for which an advanced

1) what is achievable with the best available control

energy tax credit is sought or claimed. Equipment depreciated

technology, or

under the accelerated cost recovery system, Internal Revenue

2) thirty-five thousandths pound per million British ther-

Code Section 168, and property for which the taxpayer makes

mal units of sulfur dioxide, twenty five thousandths

an election under Internal Revenue Code Section 179, is

pound per million British thermal units of oxides of

“subject to depreciation”.

nitrogen and one hundredth pound per million British

“Qualified generating facility” is a facility that begins con-

thermal units of total particulates in the flue gas;

struction no later than December 31, 2015, and is:

•

removes the greater of:

1. a solar thermal electric generating facility that begins

1) what is achievable with the best available control

construction on or after July 1, 2010, and that may include

technology, or

an associated renewable energy storage facility;

2) ninety percent of the mercury from the input fuel;

2. a solar photovoltaic electric generating facility that begins

•

captures and sequesters or controls carbon dioxide emis-

construction on or after July 1, 2010, and that may include

sions so that by the later of January 1, 2017, or 18 months

an associated renewable energy storage facility;

after the commercial operation date of the coal-based

3. a geothermal electric generating facility that begins con-

electric generating facility, no more than one thousand

struction on or after July 1, 2010;

one hundred pounds per megawat-hour of carbon dioxide

4. a recycled energy project if that facility begins construction

is emitted into the atmosphere,

on or after July 1, 2010; or

•

all infrastructure required for sequestration is in place

5. a new or repowered coal-based electric generating facility

by the later of January 1, 2017, or 18 months after the

and an associated coal gasification facility.

commercial operation date of the coal-based electric

generating facility,

“Recycled energy” is energy produced by a generation unit

•

includes methods and procedures to monitor the disposi-

with a name-plate capacity of not more than fifteen megawatts

tion of the carbon dioxide captured and sequestered from

that converts the otherwise lost energy from the exhaust

the coal-based electric generating facility, and

stacks or pipes to electricity without combustion of additional

•

does not exceed a name-plate capacity of 700 net

fossil fuel.

megawatts.

“Sequester” means to store, or chemically convert, carbon

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

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