1. A. Receipts from operating a market or exchange for the sale or trading of electricity, rights to electricity and derivative products and from providing ancillary services may be deducted from gross receipts.
2. B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department. The deduction shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the deduction.
3. C. Claiming a deduction provided by this section is authorization by the taxpayer receiving the deduction for the department to reveal return information necessary to comply with the requirements of Section 7-1-84 NMSA 1978.
4. D. As used in this section, "ancillary services" means services that are supplied from or in connection with facilities employing voltage source conversion technology and that are used to support or enhance the efficient and reliable operation of the electric system.

History: Laws 2012, ch. 12, § 3; 2025, ch. 130, § 85.

ANNOTATIONS

The 2025 amendment, effective July 1, 2025, revised reporting requirements, and required that if a taxpayer claims the electricity exchange deduction, such taxpayer consents to the taxation and revenue department reporting the amount of the deduction in an annual tax expenditure report if there are fewer than three taxpayers taking that deduction; in Subsection B, after the subsection designation, deleted "The department shall report annually to the interim revenue stabilization and tax policy committee on use of the deduction provided in this section" and added "A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department. The deduction shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the deduction"; and added new Subsection C and redesignated former Subsection C as Subsection D.