New Mexico 2024 Regular Session

New Mexico House Bill HB252

Introduced
1/25/24  
Report Pass
1/30/24  
Report Pass
2/5/24  
Engrossed
2/7/24  
Report Pass
2/11/24  
Enrolled
2/12/24  
Chaptered
3/6/24  

Caption

Adjust Income Tax Brackets

Impact

The enactment of HB 252 would modify several existing tax laws, enabling local governments to better support green energy projects through tax exemptions and credits. Notably, by including energy storage facilities as eligible projects under the Industrial Revenue Bond Act, it reinforces the state's commitment to sustainable energy practices. Furthermore, modifications to personal income tax brackets and credits, particularly those expanding the approved beneficiaries of various educational and health service tax credits, would increase financial relief for individuals and families engaged in those sectors. The bill's overall objectives reflect a balanced approach to promoting both economic growth and environmental stewardship.

Summary

House Bill 252 introduces a series of tax incentives aimed at boosting renewable energy technology and enhancing educational support. Central to this bill are provisions for offering gross receipts tax deductions for the sale of energy storage equipment, aimed particularly at government entities for their energy storage facility installations. Additionally, the bill enhances certain existing tax credits, including those applicable to geothermal energy, electric vehicles, and school supplies for teachers, which collectively encourage investment in clean energy infrastructure while providing supportive measures for education professionals.

Sentiment

The sentiment surrounding HB 252 appears broadly favorable, with support emanating from various stakeholders, including environmental advocates, educational organizations, and fiscal conservatives who see long-term benefits in incentivizing green energy and supporting educators. Proponents laud the bill's focus on innovative energy solutions, positioning it as a pivotal step towards a more sustainable state economy. However, there are concerns about the overall cost of these tax incentives and their potential impact on state revenues, suggesting a degree of skepticism among some legislators and economic analysts regarding the bill's long-term fiscal implications.

Contention

While the bill has found favor among many, some points of contention include the adequacy of funding for the proposed tax credits, as critics argue that expanding these credits without a clear revenue plan may jeopardize vital public services. Additionally, there is ongoing debate around the prioritization of certain energy projects over others, such as the extent of focus on renewable resources compared to traditional energy sectors. Discussions have also touched on whether the bill effectively aligns with broader state environmental goals, leading to various amendments and proposals designed to address these concerns.

Companion Bills

No companion bills found.

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