NM HB320

Creates two programs in the Economic Development Department: a carbon reduction production incentive program offering $85 per metric ton of CO2 reduced below industry benchmarks, and an investment grant program covering 10% of qualified capital expenditures up to $5 million maximum

Eligible products include concrete, cement, asphalt, iron, steel, glass, hydrogen, ammonia, methanol, ethylene, aluminum, pulp, paper, and critical minerals produced in New Mexico

Facilities must achieve carbon intensity at least 40% below the industry benchmark to qualify for incentives or grants, with eligibility certifications issued for terms of at least 10 years through December 31, 2036

Department of Environment must establish industry benchmarks, carbon intensity measurement methodologies, and recalculate benchmarks every five years; entities claiming federal 45Q carbon sequestration tax credits are ineligible for state production incentives

Transfers $50 million from the general fund to a new carbon reduction production and investment fund on July 1, 2026, with annual reporting to the legislature required by October 1