New Mexico 2025 Regular Session

New Mexico House Bill HB211 Compare Versions

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

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28	28	HOUSE BILL 211
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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37	37	NEW
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39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Joanne J. Ferrary and Kathleen Cates and Marianna Anaya
48	48	and Debra M. Sariñana
49	49	AN ACT
50	50	RELATING TO TAXATION; AMENDING THE ELIGIBILITY AND APPLICATION
51	51	REQUIREMENTS OF THE NEW SOLAR MARKET DEVELOPMENT INCOME TAX
52	52	CREDIT; INCREASING THE AMOUNT OF CREDIT ALLOWED FOR SOLAR
53	53	SYSTEMS WITH AT LEAST FIFTEEN KILOWATT-HOURS OF STORAGE
54	54	CAPACITY; CREATING THE NEW SOLAR MARKET DEVELOPMENT CORPORATE
55	55	INCOME TAX CREDIT.
56	56	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
57	57	SECTION 1. Section 7-2-18.31 NMSA 1978 (being Laws 2020,
58	58	Chapter 13, Section 1, as amended) is amended to read:
59	59	"7-2-18.31. NEW SOLAR MARKET DEVELOPMENT INCOME TAX
60	60	CREDIT.--
61	61	A. For taxable years prior to January 1, 2032, a
62	62	taxpayer who is not a dependent of another individual and who
63	63	[on or after March 1, 2020 ] purchases and installs a solar
64	64	.229837.2 underscored material = new
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91	91	thermal system or a photovoltaic system in a residence,
92	92	business or agricultural enterprise in New Mexico owned by that
93	93	taxpayer or by a federally recognized Indian nation, tribe or
94	94	pueblo and held in leasehold by that taxpayer or a taxpayer who
95	95	is not a dependent of another individual and who installs a
96	96	photovoltaic system on a property and sells electricity from
97	97	that system pursuant to a power purchase agreement to the owner
98	98	or occupant of that property may apply for, and the department
99	99	may allow, a credit against the taxpayer's tax liability
100	100	imposed pursuant to the Income Tax Act in an amount provided in
101	101	Subsection C of this section. The tax credit provided by this
102	102	section may be referred to as the "new solar market development
103	103	income tax credit".
104	104	B. The purpose of the new solar market development
105	105	income tax credit is to encourage the installation of solar
106	106	thermal and photovoltaic systems in residences, businesses,
107	107	nonprofit organizations and agricultural enterprises.
108	108	C. The department may allow a new solar market
109	109	development income tax credit of ten percent of the purchase
110	110	and installation costs of a solar thermal or photovoltaic
111	111	system or twenty percent of the purchase and installation costs
112	112	of a photovoltaic system that has at least fifteen kilowatt-
113	113	hours of solar storage capacity .
114	114	D. The new solar market development income tax
115	115	credit shall not exceed six thousand dollars ($6,000) per
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144	144	[taxpayer] property per taxable year, unless the tax credit is
145	145	for a photovoltaic system that has at least fifteen kilowatt-
146	146	hours of solar storage capacity, in which case the tax credit
147	147	shall not exceed twelve thousand dollars ($12,000) per property
148	148	per taxable year. The department shall allow a tax credit only
149	149	for solar thermal and photovoltaic systems certified pursuant
150	150	to Subsection E of this section.
151	151	E. Subject to the limitation provided in Subsection
152	152	F of this section, a taxpayer shall apply for certification of
153	153	eligibility for the new solar market development income tax
154	154	credit from the energy, minerals and natural resources
155	155	department on forms and in the manner prescribed by that
156	156	department. Completed applications shall be considered in the
157	157	order received. The application shall include proof of
158	158	purchase and installation of a solar thermal or photovoltaic
159	159	system, that the system meets technical specifications and
160	160	requirements relating to safety, code and standards compliance,
161	161	that the system has passed inspection by an inspector certified
162	162	by the political subdivision of the state in which the system
163	163	is located, if required by that political subdivision, a power
164	164	purchase agreement, if applicable , solar collector orientation
165	165	and sun exposure, minimum system sizes, system applications and
166	166	lists of eligible components and any additional information
167	167	that the energy, minerals and natural resources department may
168	168	require to determine eligibility for the credit. A dated
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197	197	certificate of eligibility shall be issued to the taxpayer
198	198	providing the amount of the new solar market development income
199	199	tax credit for which the taxpayer is eligible and the taxable
200	200	year in which the credit may be claimed. A certificate of
201	201	eligibility for a new solar market development income tax
202	202	credit may be sold, exchanged or otherwise transferred to
203	203	another taxpayer for the full [value ] amount of the credit.
204	204	The parties to such a transaction shall notify the department
205	205	of the sale, exchange or transfer within ten days of the sale,
206	206	exchange or transfer. Nothing in this section prohibits the
207	207	sale, exchange or transfer from being agreed upon before the
208	208	installation is made.
209	209	F. The aggregate amount of credits that may be
210	210	certified in a calendar year pursuant to Subsection E of this
211	211	section [is as follows, and applications for certification
212	212	received after these limitations have been met shall not be
213	213	approved:
214	214	(1) for calendar years 2020 through 2023,
215	215	twelve million dollars ($12,000,000) for each calendar year;
216	216	provided that if this limitation has been met for any of those
217	217	calendar years, an additional total of twenty million dollars
218	218	($20,000,000) in credits may be certified for all of those
219	219	calendar years; and provided further that credits certified
220	220	pursuant to this paragraph shall be claimed only for taxable
221	221	year 2023; and
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250	250	(2) for calendar years 2024 and thereafter,
251	251	thirty million dollars ($30,000,000) ] and Subsection D of
252	252	Section 2 of this 2025 act is thirty million dollars
253	253	($30,000,000). If a taxpayer applies for and meets the
254	254	requirements for the tax credit but the maximum aggregate
255	255	amount of credits has been certified for that taxable year, the
256	256	energy, minerals and natural resources department shall issue
257	257	the taxpayer a certificate of eligibility for the next taxable
258	258	year in which there are available certifications .
259	259	G. A taxpayer may claim a new solar market
260	260	development income tax credit for the taxable year in which the
261	261	taxpayer purchases and installs a solar thermal or photovoltaic
262	262	system. To receive a new solar market development income tax
263	263	credit, a taxpayer shall apply to the department on forms and
264	264	in the manner prescribed by the department within twelve months
265	265	following the calendar year in which the system was installed
266	266	[provided that, for a taxpayer who receives a certificate of
267	267	eligibility pursuant to Paragraph (1) of Subsection F of this
268	268	section, the taxpayer shall apply to the department within
269	269	twelve months following the calendar year in which the
270	270	certification is made ]. The application shall include a
271	271	certification made pursuant to Subsection E of this section.
272	272	H. That portion of a new solar market development
273	273	income tax credit that exceeds a taxpayer's tax liability in
274	274	the taxable year in which the credit is claimed shall be
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303	303	refunded to the taxpayer.
304	304	I. Married individuals filing separate returns for
305	305	a taxable year for which they could have filed a joint return
306	306	may each claim only one-half of the new solar market
307	307	development income tax credit that would have been claimed on a
308	308	joint return.
309	309	J. A taxpayer may be allocated the right to claim a
310	310	new solar market development income tax credit in proportion to
311	311	the taxpayer's ownership interest if the taxpayer owns an
312	312	interest in a business entity that is taxed for federal income
313	313	tax purposes as a partnership or limited liability company and
314	314	that business entity has met all of the requirements to be
315	315	eligible for the credit. The total credit claimed by all
316	316	members of the partnership or limited liability company shall
317	317	not exceed the allowable credit pursuant to this section.
318	318	K. A taxpayer allowed a tax credit pursuant to this
319	319	section shall report the amount of the credit to the taxation
320	320	and revenue department in a manner required by that department.
321	321	L. The [taxation and revenue department shall
322	322	compile an annual report on the new solar market development
323	323	income tax credit that shall include ] credit provided by this
324	324	section shall be included in the tax expenditure budget
325	325	pursuant to Section 7-1-84 NMSA 1978, including the total
326	326	annual aggregate cost of the credit , the number of taxpayers
327	327	approved by the department to receive the credit, the aggregate
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356	356	amount of credits approved and any other information necessary
357	357	to evaluate the credit. [The department shall present the
358	358	report to the revenue stabilization and tax policy committee
359	359	and the legislative finance committee with an analysis of the
360	360	cost of the tax credit. ]
361	361	M. As used in this section:
362	362	(1) "photovoltaic system" means an energy
363	363	system that collects or absorbs sunlight for conversion into
364	364	electricity; and
365	365	(2) "solar thermal system" means an energy
366	366	system that collects or absorbs solar energy for conversion
367	367	into heat for the purposes of space heating, space cooling or
368	368	water heating."
369	369	SECTION 2. A new section of the Corporate Income and
370	370	Franchise Tax Act is enacted to read:
371	371	"[NEW MATERIAL] NEW SOLAR MARKET DEVELOPMENT CORPORATE
372	372	INCOME TAX CREDIT.--
373	373	A. For taxable years prior to January 1, 2032, a
374	374	taxpayer that purchases and installs a solar thermal system or
375	375	a photovoltaic system in a business or agricultural enterprise
376	376	in New Mexico owned by that taxpayer or by a federally
377	377	recognized Indian nation, tribe or pueblo and held in leasehold
378	378	by that taxpayer or a taxpayer that installs a photovoltaic
379	379	system on a property and sells electricity from that system
380	380	pursuant to a power purchase agreement to the owner or occupant
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409	409	of that property may apply for, and the department may allow, a
410	410	credit against the taxpayer's tax liability for that taxable
411	411	year imposed pursuant to the Corporate Income and Franchise Tax
412	412	Act in an amount provided in Subsection B of this section. The
413	413	tax credit provided by this section may be referred to as the
414	414	"new solar market development corporate income tax credit".
415	415	B. The department may allow a new solar market
416	416	development corporate income tax credit of ten percent of the
417	417	purchase and installation costs of a solar thermal or
418	418	photovoltaic system or twenty percent of the purchase and
419	419	installation costs of a photovoltaic system that has at least
420	420	fifteen kilowatt-hours of solar storage capacity.
421	421	C. The new solar market development corporate
422	422	income tax credit shall not exceed six thousand dollars
423	423	($6,000) per property per taxable year, unless the tax credit
424	424	is for a photovoltaic system that has at least fifteen
425	425	kilowatt-hours of solar storage capacity, in which case the tax
426	426	credit shall not exceed twelve thousand dollars ($12,000) per
427	427	property per taxable year. The department shall allow a tax
428	428	credit only for solar thermal and photovoltaic systems
429	429	certified pursuant to Subsection D of this section.
430	430	D. Subject to the limitation provided in Subsection
431	431	E of this section, a taxpayer shall apply for certification of
432	432	eligibility for the new solar market development corporate
433	433	income tax credit from the energy, minerals and natural
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462	462	resources department on forms and in the manner prescribed by
463	463	that department. Completed applications shall be considered in
464	464	the order received. The application shall include proof of
465	465	purchase and installation of a solar thermal or photovoltaic
466	466	system, that the system meets technical specifications and
467	467	requirements relating to safety, code and standards compliance,
468	468	that the system has passed inspection by an inspector certified
469	469	by the political subdivision of the state in which the system
470	470	is located, if required by that political subdivision, a power
471	471	purchase agreement, if applicable, solar collector orientation
472	472	and sun exposure, minimum system sizes, system applications and
473	473	lists of eligible components and any additional information
474	474	that the energy, minerals and natural resources department may
475	475	require to determine eligibility for the credit. A dated
476	476	certificate of eligibility shall be issued to the taxpayer
477	477	providing the amount of the new solar market development
478	478	corporate income tax credit for which the taxpayer is eligible
479	479	and the taxable year in which the credit may be claimed. A
480	480	certificate of eligibility for a new solar market development
481	481	corporate income tax credit may be sold, exchanged or otherwise
482	482	transferred to another taxpayer for the full amount of the
483	483	credit. The parties to such a transaction shall notify the
484	484	department of the sale, exchange or transfer within ten days of
485	485	the sale, exchange or transfer. Nothing in this section
486	486	prohibits the sale, exchange or transfer from being agreed upon
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515	515	before the installation is made.
516	516	E. The aggregate amount of credits that may be
517	517	certified pursuant to Subsection D of this section and
518	518	Subsection E of Section 7-2-18.31 NMSA 1978 is thirty million
519	519	dollars ($30,000,000). If a taxpayer applies for and meets the
520	520	requirements for the tax credit but the maximum aggregate
521	521	amount of credits has been certified for that taxable year, the
522	522	energy, minerals and natural resources department shall issue
523	523	the taxpayer a certificate of eligibility for the next taxable
524	524	year in which there are available certifications.
525	525	F. A taxpayer may claim a new solar market
526	526	development corporate income tax credit for the taxable year in
527	527	which the taxpayer purchases and installs a solar thermal or
528	528	photovoltaic system. To receive a new solar market development
529	529	corporate income tax credit, a taxpayer shall apply to the
530	530	department on forms and in the manner prescribed by the
531	531	department within twelve months following the calendar year in
532	532	which the system was installed. The application shall include
533	533	a certification made pursuant to Subsection D of this section.
534	534	G. That portion of a new solar market development
535	535	corporate income tax credit that exceeds a taxpayer's tax
536	536	liability in the taxable year in which the credit is claimed
537	537	shall be refunded to the taxpayer.
538	538	H. A taxpayer allowed a tax credit pursuant to this
539	539	section shall report the amount of the credit to the taxation
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568	568	and revenue department in a manner required by that department.
569	569	I. The credit provided by this section shall be
570	570	included in the tax expenditure budget pursuant to Section
571	571	7-1-84 NMSA 1978, including the total annual aggregate cost of
572	572	the credit, the number of taxpayers approved by the department
573	573	to receive the credit, the aggregate amount of credits approved
574	574	and any other information necessary to evaluate the credit.
575	575	J. As used in this section:
576	576	(1) "photovoltaic system" means an energy
577	577	system that collects or absorbs sunlight for conversion into
578	578	electricity; and
579	579	(2) "solar thermal system" means an energy
580	580	system that collects or absorbs solar energy for conversion
581	581	into heat for the purposes of space heating, space cooling or
582	582	water heating."
583	583	SECTION 3. APPLICABILITY.--The provisions of this act
584	584	apply to the purchase and installation of a solar thermal
585	585	system or a photovoltaic system in taxable years beginning on
586	586	or after January 1, 2025.
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588	588	.229837.2