RPD-41227: RPD-41227 Renewable Energy Production Tax Credit Claim Form (Revision)
New Mexico · New Mexico TRD · Used for tax years 2024
New Mexico Form RPD-41227 is used to claim the renewable energy production tax credit. It calculates the current-year credit, unused credits carried forward from prior claims, the amount applied to an income tax return, and any credit to be refunded.
Who files this form
Use Form RPD-41227 to claim the New Mexico renewable energy production tax credit with a personal, corporate, or fiduciary income tax return.
The eligibility provisions cover taxpayers who own a qualified energy generator or lease one from a county or municipality under an industrial revenue bond. The “Who May Claim the Credit” section specifies a generator that first produced electricity on or before January 1, 2018. It also identifies personal income tax filers who are not another taxpayer’s dependent.
A qualified generator must be located in New Mexico, have at least one megawatt of generating capacity, use a qualified energy resource, and sell the electricity to an unrelated person.
Certain owners of interests in businesses taxed as partnerships may receive an allocation of the credit. The allocation rules require, among other things, that the allocated taxpayers collectively own at least a 5% interest in a qualified generator and that EMNRD certify the allocation in writing.
What you'll need
Prepare these items for your claim:
- Completed and signed Form RPD-41227.
- Certificate of Eligibility issued by the Energy, Minerals and Natural Resources Department (EMNRD).
- Notice of Allocation approved by EMNRD for the year claimed.
- Documentation showing how much electricity the facility produced during the tax year.
- Your personal, corporate, or fiduciary income tax return and associated Schedule CR.
- Completed Schedule A if you are carrying forward unused credits from earlier claims.
To complete the form, have your claimant identification and contact information, the generator’s electricity production start date, certified annual production potential, and approved allocation percentage available. For Schedule A, you need the earlier approved credit amounts and the amounts already used.
The Taxation and Revenue Department (TRD) may request additional information to verify eligibility.
How to file
- Obtain the Certificate of Eligibility and approved Notice of Allocation from EMNRD. An allocation must be approved for each taxable year claimed.
- Complete Section I to calculate the current-year credit. Use the lesser of actual electricity production or the certified annual production potential, the applicable credit rate, and your approved allocation percentage.
- Complete Schedule A and Section II for eligible unused credits from prior years.
- Complete Section III to show the available credit, the credit taken, and any refundable credit. Sign and date the form.
- Report the amount from line 10 on your personal, corporate, or fiduciary income tax return. Submit Form RPD-41227 and its required attachments with that return to TRD.
The text lists this TRD contact address:
New Mexico Taxation and Revenue Department
Business Credit Claim Unit
P.O. Box 630
Santa Fe, NM 87504-0630
For eligibility certification and allocation assistance, contact:
New Mexico Energy, Minerals and Natural Resources Department
Energy Conservation and Management Division
P.O. Box 6429
Santa Fe, NM 87504-6429
(505) 476-3310
emnrd.taxcredits@state.nm.us
The supplied text does not provide e-file instructions.
Common mistakes
- Leaving out required attachments. The form warns that failing to attach the claim form, Certificate of Eligibility, and Notice of Allocation to your return will result in denial.
- Using the wrong allocation percentage. Line 6 must match your percentage on EMNRD’s Notice of Allocation for the claim year.
- Carrying forward expired credits. Schedule A says not to enter credits that are no longer available. Unused credits may be carried forward for five consecutive tax years.
- Applying credits in the wrong order. Apply the approved current-year credit first, then eligible carryforward credits, starting with the oldest.
- Reusing an allocation without annual approval. The instructions remind claimants that a Notice of Allocation must be approved for each taxable year the generator produces qualifying energy.
Questions people ask
How long can a generator qualify for the credit?
The credit is available for 120 consecutive months beginning when the qualified generator starts producing electricity. Calculate it using actual electricity produced during the taxable years within that period.
Can unused credit be carried forward?
Yes. Unused credit may be carried forward for five tax years. Use Schedule A to calculate the amount available from earlier claims.
Can excess credit be refunded?
Excess credit is refundable if the qualified generator first produced electricity using a qualified energy resource on or after October 1, 2007.
Is the credit rate the same for every energy source?
No. The instructions provide a rate of $0.01 per kilowatt-hour for wind or biomass, subject to production limits. Solar rates vary by the taxable year following the generator’s production start date. The solar rate table runs from the first through the eleventh taxable year.
Where can I get help with the tax credit claim?
Contact TRD’s Business Credit Claim Unit at (505) 827-0792 or BusinessCredit.Mgr@state.nm.us.