Energy Facilities Bonds And Gross Receipts
The bill provisions will enable a gross receipts tax deduction for sales of energy storage equipment to governments, specifically for the purpose of installing renewable energy storage facilities. This is seen as a significant step in supporting local governments' capacity to adopt and implement renewable energy solutions, potentially reducing costs associated with such investments. By incentivizing sales through tax deductions, the bill may stimulate economic activity related to renewable energy manufacturing and installation within the state, which in turn could lead to job creation and bolster the local economy.
House Bill 67, introduced in the 56th Legislature of New Mexico, aims to enhance the state's investment in renewable energy technologies by incorporating certain electric energy storage facilities as eligible projects under the Industrial Revenue Bond Act and the County Industrial Revenue Bond Act. This bill focuses on facilitating the installation and use of renewable energy storage systems, which are essential for managing energy supply and demand. By allowing these facilities to benefit from industrial revenue bonds, the state intends to encourage development and investment in this sector, thereby promoting the use of renewable energy resources.
While the bill tends to be broadly supported in terms of increasing renewable energy infrastructure, there may be concerns from stakeholders regarding the implications of incentivizing energy storage facilities at the potential expense of other energy initiatives or regulations. Discussions among lawmakers will likely revolve around ensuring that such incentives do not inadvertently favor larger corporations over small businesses or local entities, as well as addressing any environmental concerns related to the storage technologies employed.