underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
HOUSE BILL 213
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Joanne J. Ferrary and Kathleen Cates and Debra M. Sariñana
AN ACT
RELATING TO TAXATION; CREATING THE SCHOOL SOLAR INCOME TAX
CREDIT AND THE SCHOOL SOLAR CORPORATE 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] SCHOOL SOLAR INCOME TAX CREDIT.--
A. For taxable years prior to January 1, 2037, a
taxpayer who is not a dependent of another individual and who,
on or after the effective date of this section, installs a
photovoltaic system on public school property or the property
of a public post-secondary educational institution for the
purpose of providing electricity to the school's or educational
institution's buildings in New Mexico may claim a credit
against the taxpayer's tax liability imposed pursuant to the
.229676.3 underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Income Tax Act in an amount provided in Subsection B of this
section. The tax credit provided by this section may be
referred to as the "school solar income tax credit".
B. The amount of tax credit that may be allowed
shall be in an amount equal to forty percent of:
(1) the cost to install the photovoltaic
system on a public school property or the property of a public
post-secondary educational institution, including labor,
engineering, permitting, interconnection, support structure,
racking, batteries, subcontracting costs as normally invoiced
by the installer and other related costs; or
(2) the value of the system, as determined by
a licensed appraiser and established by the taxpayer's
application to the federal internal revenue service for a
federal tax credit for a photovoltaic system.
C. A taxpayer who seeks to claim the tax credit
provided by this section shall apply for certification of
eligibility in the taxable year that the solar panels of the
photovoltaic system are installed from the energy, minerals and
natural resources department on forms and in the manner
prescribed by that department. Completed applications shall be
considered in the order received. The application shall
include:
(1) proof of installation of a photovoltaic
system on public school property or the property of a public
.229676.3
- 2 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
post-secondary educational institution;
(2) proof that the system meets technical
specifications and requirements relating to safety, code and
standards compliance;
(3) proof that the system has passed
inspection by an inspector certified by a political subdivision
of the state or, if there is no certified inspector that
services the location of the system's installation, a statement
of such fact;
(4) proof that the system has system
applications appropriate to the school or educational
institution;
(5) a list of eligible components;
(6) if using appraised valuation to determine
the amount of tax credit pursuant to Paragraph (2) of
Subsection B of this section, proof of appraisal by a licensed
appraiser, including the taxpayer's application to the federal
internal revenue service for a federal tax credit for the
photovoltaic system; and
(7) any additional information that the
energy, minerals and natural resources department may require
to determine eligibility for the credit.
D. If the energy, minerals and natural resources
department determines that the taxpayer meets the requirements
to claim the tax credit, that department shall issue to the
.229676.3
- 3 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
taxpayer a dated certificate of eligibility providing the
amount of the tax credit for which the taxpayer is eligible and
the taxable year in which the credit may be claimed. The
energy, minerals and natural resources department shall provide
the department with the certificates of eligibility issued
pursuant to this subsection in an electronic format at
regularly agreed-upon intervals.
E. The total aggregate amount of school solar
income tax credits and school solar corporate income tax
credits pursuant to Section 2 of this 2025 act that may be
certified as eligible is three hundred million dollars
($300,000,000), and the maximum that may be certified for a
calendar year prior to 2028 is one hundred million dollars
($100,000,000). If a taxpayer applies for and meets the
requirements for the tax credit, but the maximum aggregate
amount of credits has been certified for that taxable year, the
department shall issue the taxpayer a certificate of
eligibility for the next taxable year in which there are
available certifications.
F. To receive the tax credit provided by this
section, a taxpayer shall claim the credit on forms and in the
manner prescribed by the department. The claim shall include a
certificate of eligibility issued pursuant to this section.
G. That portion of tax credit that exceeds a
taxpayer's tax liability in the taxable year in which the
.229676.3
- 4 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
credit is claimed shall be refunded to the taxpayer.
H. A certificate of eligibility for the tax credit
may be sold, exchanged or otherwise transferred to another
taxpayer for the full value of the credit. The parties to such
a transaction shall notify the department of the sale, exchange
or transfer within ten days of the sale, exchange or transfer.
I. 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 tax credit that would have
been claimed on a joint return.
J. A taxpayer may be allocated the right to claim
the tax 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 allowable credit
pursuant to this section.
K. The department shall include the tax credit in
the tax expenditure budget compiled pursuant to Section 7-1-84
NMSA 1978.
L. As used in this section:
(1) "photovoltaic system" means an energy
system that collects or absorbs sunlight for conversion into
.229676.3
- 5 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
electricity;
(2) "public school" means that part of a
school district that is a single attendance center in which
instruction is offered by one or more teachers and is
discernible as a building or group of buildings generally
recognized as either an elementary, middle, junior high or high
school or any combination of those and includes a charter
school; and
(3) "public school property" means real
property owned by a school district."
SECTION 2. A new section of the Corporate Income and
Franchise Tax Act is enacted to read:
"[NEW MATERIAL] SCHOOL SOLAR CORPORATE INCOME TAX
CREDIT.--
A. For taxable years prior to January 1, 2037, a
taxpayer that installs a photovoltaic system on public school
property or the property of a public post-secondary educational
institution for the purpose of providing electricity to the
school's or educational institution's buildings in New Mexico
may claim a tax credit against the taxpayer's tax liability for
that taxable year imposed pursuant to the Corporate Income and
Franchise Tax Act. The tax credit provided by this section may
be referred to as the "school solar corporate income tax
credit".
B. The amount of tax credit that may be allowed
.229676.3
- 6 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
shall be in an amount equal to forty percent of:
(1) the cost to install the photovoltaic
system on a public school property or the property of a public
post-secondary educational institution, including labor,
engineering, permitting, interconnection, support structure,
racking, batteries, subcontracting costs as normally invoiced
by the installer and other related costs; or
(2) the value of the system, as determined by
a licensed appraiser and established by the taxpayer's
application to the federal internal revenue service for a
federal tax credit for a photovoltaic system.
C. A taxpayer shall apply for certification of
eligibility in the taxable year that the solar panels of the
photovoltaic system are installed from the energy, minerals and
natural resources department on forms and in the manner
prescribed by that department. Completed applications shall be
considered in the order received. The application shall
include:
(1) proof of installation of a photovoltaic
system on public school property or the property of a public
post-secondary educational institution;
(2) proof that the system meets technical
specifications and requirements relating to safety, code and
standards compliance;
(3) proof that the system has passed
.229676.3
- 7 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
inspection by an inspector certified by a political subdivision
of the state or, if there is no certified inspector that
services the location of the system's installation, a statement
of such fact;
(4) proof that the system has system
applications appropriate to the school or educational
institution;
(5) a list of eligible components;
(6) if using appraised valuation to determine
the amount of tax credit pursuant to Paragraph (2) of
Subsection B of this section, proof of appraisal by a licensed
appraiser, including the taxpayer's application to the federal
internal revenue service for a federal tax credit for the
photovoltaic system; and
(7) any additional information that the
energy, minerals and natural resources department may require
to determine eligibility for the credit.
D. If the energy, minerals and natural resources
department determines that the taxpayer meets the requirements
to claim the tax credit, that department shall issue to the
taxpayer a dated certificate of eligibility providing the
amount of the tax credit for which the taxpayer is eligible and
the taxable year in which the credit may be claimed. The
energy, minerals and natural resources department shall provide
the department with the certificates of eligibility issued
.229676.3
- 8 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
pursuant to this subsection in an electronic format at
regularly agreed-upon intervals.
E. The total aggregate amount of school solar
corporate income tax credits and school solar income tax
credits pursuant to Section 1 of this 2025 act that may
be certified as eligible is three hundred million dollars
($300,000,000), and the maximum that may be certified for a
calendar year prior to 2028 is one hundred million dollars
($100,000,000). If a taxpayer applies for and meets the
requirements for the tax credit, but the maximum aggregate
amount of credits has been certified for that taxable year, the
department shall issue the taxpayer a certificate of
eligibility for the next taxable year in which there are
available certifications.
F. To receive the tax credit provided by this
section, a taxpayer shall claim the credit on forms and in the
manner prescribed by the department. The claim shall include a
certificate of eligibility issued pursuant to this section.
G. That portion of tax credit that exceeds a
taxpayer's tax liability in the taxable year in which the
credit is claimed shall be refunded to the taxpayer.
H. A certificate of eligibility for the tax credit
may be sold, exchanged or otherwise transferred to another
taxpayer for the full value of the credit. The parties to such
a transaction shall notify the department of the sale, exchange
.229676.3
- 9 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
or transfer within ten days of the sale, exchange or transfer.
I. A taxpayer may be allocated the right to claim
the tax 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 allowable credit
pursuant to this section.
J. The department shall include the tax credit in
the tax expenditure budget compiled pursuant to Section 7-1-84
NMSA 1978.
K. As used in this section:
(1) "photovoltaic system" means an energy
system that collects or absorbs sunlight for conversion into
electricity;
(2) "public school" means that part of a
school district that is a single attendance center in which
instruction is offered by one or more teachers and is
discernible as a building or group of buildings generally
recognized as either an elementary, middle, junior high or high
school or any combination of those and includes a public
charter school; and
(3) "public school property" means real
.229676.3
- 10 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
property owned by a school district."
SECTION 3. APPLICABILITY.--The provisions of this act
apply to taxable years beginning on or after January 1, 2025.
- 11 -
.229676.3