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The AgSTAR Program |  |
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| Biomass Equipment & Materials Deduction | |
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| Eligible States | NM |
| Type | Tax Exemption |
| Area of Interest | Renewable Energy |
| Description | Businesses are allowed to deduct the value of biomass equipment and biomass materials used for the processing of biopower, biofuels or biobased products in determining the amount of their Compensating Tax due. New Mexico's Compensating Tax is an excise, or "use" tax, which is typically levied on the purchaser of the product or service for using tangible property in the state. The tax applies to imports of factory and office equipment, and other items. The rate is 5 percent of the value of the property or service. This biomass Compensating Tax deduction is analogous to a sales tax exemption for renewable energy equipment available in some other states. |
| Eligible Organizations | Livestock Producer, Commercial/Industrial Business, Small Business |
| How to Apply | Deductions from compensating tax do not have to be reported to the NM Taxation and Revenue Department but records substantiating the deduction should be kept in the taxpayer's records. |
| For More Information | http://www.state.nm.us/tax/home.htm  |
| Primary Contact | Tax Information Office New Mexico Taxation & Revenue Department P.O. Box 630 Santa Fe, NM 87504 (505) 827-0700 poffice@state.nm.us |
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