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HOUSE BILL 176
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Harlan Vincent and Luis M. Terrazas and Rebecca Dow
AN ACT
RELATING TO TAXATION; CREATING THE BACKUP POWER GENERATOR
INCOME TAX CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Income Tax Act is enacted
to read:
"[NEW MATERIAL] BACKUP POWER GENERATOR INCOME TAX
CREDIT.--
A. For taxable years prior to January 1, 2035, a
taxpayer who is not a dependent of another individual and who,
on or after March 1, 2025, purchases and permanently installs
in New Mexico a backup power generator may claim a credit
against the taxpayer's tax liability imposed pursuant to the
Income Tax Act in an amount provided in Subsection B of this
section. The tax credit provided by this section may be
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referred to as the "backup power generator income tax credit".
B. The amount of credit that may be allowed shall
be in an amount equal to fifty percent of the purchase and
installation costs of the backup power generator.
C. A taxpayer shall apply for certification of
eligibility for the credit from the energy, minerals and
natural resources department on forms and in the manner
prescribed by that department. Except as provided in
Subsections F and G of this section, only one tax credit shall
be certified per taxpayer. The total annual aggregate amount
of credits that may be certified in any calendar year is five
million dollars ($5,000,000). Completed applications shall be
considered in the order received. Applications for
certification received after this limitation has been met in a
calendar year shall not be approved for that calendar year, but
shall be considered for certification in the following calendar
year. The application shall include proof that the taxpayer is
eligible for certification. For taxpayers approved to receive
the credit, the energy, minerals and natural resources
department shall issue a certificate of eligibility stating the
amount of credit to which the taxpayer is entitled and the
taxable year in which the credit may be claimed. The
certificate of eligibility shall be numbered for identification
and declare the date of issuance and the amount of the tax
credit allowed.
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D. A taxpayer may claim the credit for the taxable
year in which the taxpayer purchases and permanently installs a
backup power generator. To receive the credit, the taxpayer
shall apply to the department on forms and in the manner
prescribed by the department. The application shall include a
certification made pursuant to Subsection C of this section.
E. That portion of a credit that exceeds a
taxpayer's tax liability in the taxable year in which the
credit is claimed shall be refunded to the taxpayer.
F. Married individuals filing separate returns for
a taxable year for which they could have filed a joint return
may each claim only one-half of the credit that would have been
claimed on a joint return.
G. A taxpayer may be allocated the right to claim
the credit in proportion to the taxpayer's ownership interest
if the taxpayer owns an interest in a business entity that is
taxed for federal income tax purposes as a partnership or
limited liability company and that business entity has met all
of the requirements to be eligible for the credit. The total
credit claimed by all members of the partnership or limited
liability company shall not exceed the maximum amount of the
credit allowed pursuant to this section.
H. A taxpayer allowed the credit shall report the
amount of the credit to the department in a manner required by
the department.
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I. The credit provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the total annual aggregate cost of
the credit.
J. As used in this section, "backup power
generator" means a device that automatically provides temporary
or permanent power when the main power source fails."
SECTION 2. DELAYED REPEAL.--Section 1 of this act is
repealed effective January 1, 2035.
SECTION 3. APPLICABILITY.--The provisions of this act
apply to taxable years beginning on or after January 1, 2025.
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