RENEWABLE ENERGY projects get help.
New Mexico adopted a tax credit of 1¢ a kilowatt hour for generating electricity from wind or sunlight. The governor signed the measure in March. To qualify, a company must have at least 20 megawatts of windpower or solar generating capacity in the state. The credit can be claimed on up to 400,000 megawatt hours of electricity in total over a period not to exceed 10 years.
Meanwhile, a new law in South Dakota gives a break to wind and other renewable energy projects. The state collects a 2% contractors excise tax on new construction. The new law reduces the tax to 1% — and allows deferred payment over four years — for renewable energy projects that begin generating at least 10 megawatts of electricity after June 30 this year.