1. All NM Taxes
  2. Frequently Asked Questions
  3. How is the intergovernmental tax credit recognized?

How is the intergovernmental tax credit recognized?

Oil & Gas Production Taxes

The tax credit applies only to “qualifying wells.” It is calculated each month by product and production unit at 75% of the lesser of: either the aggregate amount of severance, privilege, ad valorem or similar tax in effect on March 1, 1995, that is imposed by the Indian nation, tribe or pueblo, or the aggregate amount of the oil and gas production tax imposed by the state on qualifying wells.

Severance Tax – Non Oil & Gas

The tax credit is calculated monthly by the mine. It is 75% of the lesser of either the aggregate amount of coal severance, privilege, ad valorem or similar tax in effect on March 1, 1995, that is imposed by the Indian nation, tribe or pueblo, or the aggregate amount of coal severance tax and surtax tax due the state.