New Mexico 2025 Regular Session

New Mexico House Bill HB176 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	underscored material = new
2	2	[bracketed material] = delete
3	3	1
4	4	2
5	5	3
6	6	4
7	7	5
8	8	6
9	9	7
10	10	8
11	11	9
12	12	10
13	13	11
14	14	12
15	15	13
16	16	14
17	17	15
18	18	16
19	19	17
20	20	18
21	21	19
22	22	20
23	23	21
24	24	22
25	25	23
26	26	24
27	27	25
28	28	HOUSE BILL 176
29	29	57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
30	30	INTRODUCED BY
31	31	Harlan Vincent and Luis M. Terrazas and Rebecca Dow
32	32	AN ACT
33	33	RELATING TO TAXATION; CREATING THE BACKUP POWER GENERATOR
34	34	INCOME TAX CREDIT.
35	35	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
36	36	SECTION 1. A new section of the Income Tax Act is enacted
37	37	to read:
38	38	"[NEW MATERIAL] BACKUP POWER GENERATOR INCOME TAX
39	39	CREDIT.--
40	40	A. For taxable years prior to January 1, 2035, a
41	41	taxpayer who is not a dependent of another individual and who,
42	42	on or after March 1, 2025, purchases and permanently installs
43	43	in New Mexico a backup power generator may claim a credit
44	44	against the taxpayer's tax liability imposed pursuant to the
45	45	Income Tax Act in an amount provided in Subsection B of this
46	46	section. The tax credit provided by this section may be
47	47	.228613.4 underscored material = new
48	48	[bracketed material] = delete
49	49	1
50	50	2
51	51	3
52	52	4
53	53	5
54	54	6
55	55	7
56	56	8
57	57	9
58	58	10
59	59	11
60	60	12
61	61	13
62	62	14
63	63	15
64	64	16
65	65	17
66	66	18
67	67	19
68	68	20
69	69	21
70	70	22
71	71	23
72	72	24
73	73	25
74	74	referred to as the "backup power generator income tax credit".
75	75	B. The amount of credit that may be allowed shall
76	76	be in an amount equal to fifty percent of the purchase and
77	77	installation costs of the backup power generator.
78	78	C. A taxpayer shall apply for certification of
79	79	eligibility for the credit from the energy, minerals and
80	80	natural resources department on forms and in the manner
81	81	prescribed by that department. Except as provided in
82	82	Subsections F and G of this section, only one tax credit shall
83	83	be certified per taxpayer. The total annual aggregate amount
84	84	of credits that may be certified in any calendar year is five
85	85	million dollars ($5,000,000). Completed applications shall be
86	86	considered in the order received. Applications for
87	87	certification received after this limitation has been met in a
88	88	calendar year shall not be approved for that calendar year, but
89	89	shall be considered for certification in the following calendar
90	90	year. The application shall include proof that the taxpayer is
91	91	eligible for certification. For taxpayers approved to receive
92	92	the credit, the energy, minerals and natural resources
93	93	department shall issue a certificate of eligibility stating the
94	94	amount of credit to which the taxpayer is entitled and the
95	95	taxable year in which the credit may be claimed. The
96	96	certificate of eligibility shall be numbered for identification
97	97	and declare the date of issuance and the amount of the tax
98	98	credit allowed.
99	99	.228613.4
100	100	- 2 - underscored material = new
101	101	[bracketed material] = delete
102	102	1
103	103	2
104	104	3
105	105	4
106	106	5
107	107	6
108	108	7
109	109	8
110	110	9
111	111	10
112	112	11
113	113	12
114	114	13
115	115	14
116	116	15
117	117	16
118	118	17
119	119	18
120	120	19
121	121	20
122	122	21
123	123	22
124	124	23
125	125	24
126	126	25
127	127	D. A taxpayer may claim the credit for the taxable
128	128	year in which the taxpayer purchases and permanently installs a
129	129	backup power generator. To receive the credit, the taxpayer
130	130	shall apply to the department on forms and in the manner
131	131	prescribed by the department. The application shall include a
132	132	certification made pursuant to Subsection C of this section.
133	133	E. That portion of a credit that exceeds a
134	134	taxpayer's tax liability in the taxable year in which the
135	135	credit is claimed shall be refunded to the taxpayer.
136	136	F. Married individuals filing separate returns for
137	137	a taxable year for which they could have filed a joint return
138	138	may each claim only one-half of the credit that would have been
139	139	claimed on a joint return.
140	140	G. A taxpayer may be allocated the right to claim
141	141	the credit in proportion to the taxpayer's ownership interest
142	142	if the taxpayer owns an interest in a business entity that is
143	143	taxed for federal income tax purposes as a partnership or
144	144	limited liability company and that business entity has met all
145	145	of the requirements to be eligible for the credit. The total
146	146	credit claimed by all members of the partnership or limited
147	147	liability company shall not exceed the maximum amount of the
148	148	credit allowed pursuant to this section.
149	149	H. A taxpayer allowed the credit shall report the
150	150	amount of the credit to the department in a manner required by
151	151	the department.
152	152	.228613.4
153	153	- 3 - underscored material = new
154	154	[bracketed material] = delete
155	155	1
156	156	2
157	157	3
158	158	4
159	159	5
160	160	6
161	161	7
162	162	8
163	163	9
164	164	10
165	165	11
166	166	12
167	167	13
168	168	14
169	169	15
170	170	16
171	171	17
172	172	18
173	173	19
174	174	20
175	175	21
176	176	22
177	177	23
178	178	24
179	179	25
180	180	I. The credit provided by this section shall be
181	181	included in the tax expenditure budget pursuant to Section
182	182	7-1-84 NMSA 1978, including the total annual aggregate cost of
183	183	the credit.
184	184	J. As used in this section, "backup power
185	185	generator" means a device that automatically provides temporary
186	186	or permanent power when the main power source fails."
187	187	SECTION 2. DELAYED REPEAL.--Section 1 of this act is
188	188	repealed effective January 1, 2035.
189	189	SECTION 3. APPLICABILITY.--The provisions of this act
190	190	apply to taxable years beginning on or after January 1, 2025.
191	191	- 4 -
192	192	.228613.4