RENAME GEOTHERMAL TAX CREDITS

SB 163 renames New Mexico's "geothermal electricity generation" tax credits to "geothermal energy production" credits and establishes a tiered credit system based on kilowatt-hour output. The credit rate starts at $0.015 per kilowatt-hour in the first operational year, increases to $0.04 by year six, then decreases over the next four years, with a yearly production cap of 200,000 megawatt-hours per facility. Total annual credits are capped at $55 million, including $11 million reserved for tribal and small businesses, and credits can be transferred to other taxpayers. This bill directly affects geothermal energy producers in New Mexico who own or hold an interest in geothermal facilities.