[1] NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

SPONSOR:

Lujan

 

DATE TYPED:

02/04/02

 

HB

377

 

SHORT TITLE:

Wind Generation Equipment Exclusion

 

SB

 

 

 

ANALYST:

Wilson

 

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

 

 

 

 

($0.1)

Indeterminate

Recurring

General Fund

 

SOURCES OF INFORMATION

 

LFC files

Energy, Minerals & Natural Resources (EMNRD)

Taxation and Revenue (TRD)

 

SUMMARY

 

     Synopsis of Bill

 

HB 377 deletes “a wind generation nacelle, rotor or related equipment installed on a supporting structure” from the definition of “construction materials”. HB 377 will have the effect of deleting wind powered electric generators from the Gross Receipts Tax.

 

    Significant Issues

 

By exempting wind generators from Gross Receipts Tax, the bill encourages the wind industry by lowering the production cost of wind-generated electricity in order to make it more competitive.

 

EMNRD claims that New Mexico has excellent wind resources that are suitable for large-scale commercial development.

 

FISCAL IMPLICATIONS

 

There will be an unknown loss of revenue since wind generation powered electric generators are currently taxed.

 

ENMRD indicates there is currently only one commercial wind turbine operating in New Mexico at the present time. They are hoping to attract more commercial wind development.

 

DW/ar:njw


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