New Mexico 2025 Regular Session

New Mexico House Bill HB51 Compare Versions

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

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28	28	HOUSE BILL 51
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	Debra M. Sariñana
48	48	AN ACT
49	49	RELATING TO TAXATION; CREATING THE ENERGY STORAGE SYSTEM INCOME
50	50	TAX CREDIT; CREATING THE ENERGY STORAGE SYSTEM CORPORATE INCOME
51	51	TAX CREDIT.
52	52	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
53	53	SECTION 1. A new section of the Income Tax Act is enacted
54	54	to read:
55	55	"[NEW MATERIAL] ENERGY STORAGE SYSTEM INCOME TAX CREDIT.--
56	56	A. For a taxable year prior to January 1, 2030, a
57	57	taxpayer who is not a dependent of another individual and
58	58	purchases and installs an energy storage system on the
59	59	taxpayer's residential, commercial, industrial or agricultural
60	60	property in New Mexico may apply for, and the department may
61	61	allow, a credit against the taxpayer's tax liability imposed
62	62	pursuant to the Income Tax Act. The tax credit provided by
63	63	.228901.4 underscored material = new
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90	90	this section may be referred to as the "energy storage system
91	91	income tax credit".
92	92	B. The department may allow an energy storage
93	93	system income tax credit of forty percent of the purchase and
94	94	installation costs of an energy storage system certified
95	95	pursuant to this section, up to a maximum amount of credit of
96	96	six thousand dollars ($6,000) for a system installed on
97	97	residential property and one hundred fifty thousand dollars
98	98	($150,000) for a system installed on nonresidential property,
99	99	including commercial, industrial or agricultural property;
100	100	provided that no more than one system per property shall be
101	101	eligible for the credit. If the energy storage system is
102	102	installed with a system that generates energy, only the costs
103	103	related to the energy storage system shall be eligible for the
104	104	credit.
105	105	C. A taxpayer who seeks to claim the tax credit
106	106	provided by this section shall, within twelve months following
107	107	the calendar year in which the system becomes operational,
108	108	apply for certification of eligibility from the energy,
109	109	minerals and natural resources department on forms and in the
110	110	manner prescribed by that department. The aggregate amount of
111	111	credits that may be certified pursuant to this section and
112	112	Section 2 of this 2025 act for any calendar year is six million
113	113	dollars ($6,000,000). The energy, minerals and natural
114	114	resources department shall publish to its website on a regular
115	115	.228901.4
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143	143	basis the annual aggregate amount of energy storage system
144	144	income tax credits and energy storage system corporate income
145	145	tax credits that have been certified pursuant to this 2025 act
146	146	for each calendar year in which credits are certified.
147	147	Completed applications shall be considered in the order
148	148	received. The application shall include proof of purchase and
149	149	installation of an energy storage system, that the system meets
150	150	technical specifications and requirements relating to safety,
151	151	code and standards compliance, lists of eligible components and
152	152	any additional information that the energy, minerals and
153	153	natural resources department may require to determine
154	154	eligibility for the credit.
155	155	D. If the energy, minerals and natural resources
156	156	department determines that a taxpayer meets the requirements to
157	157	claim a tax credit pursuant to this section, that department
158	158	shall issue a dated certificate of eligibility to the taxpayer
159	159	providing the amount of credit for which the taxpayer is
160	160	eligible and the taxable year for which the credit may be
161	161	claimed. If a taxpayer applies for and meets the requirements
162	162	for a tax credit pursuant to this section, but the maximum
163	163	aggregate amount of credits has been certified for that taxable
164	164	year, the energy, minerals and natural resources department
165	165	shall issue the taxpayer a certificate of eligibility for the
166	166	next taxable year in which there are available certifications.
167	167	E. To receive a tax credit provided by this
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196	196	section, a taxpayer shall claim the credit on forms and in the
197	197	manner prescribed by the department. The claim shall include a
198	198	certification of eligibility issued pursuant to this section.
199	199	A taxpayer shall not be allowed to claim the tax credit for the
200	200	purchase and installation of the same energy storage system for
201	201	which an energy storage system corporate income tax credit was
202	202	claimed pursuant to Section 2 of this 2025 act.
203	203	F. That portion of an energy storage system income
204	204	tax credit that exceeds a taxpayer's tax liability in the
205	205	taxable year in which the credit is claimed shall not be
206	206	refunded and may be carried forward for a maximum of five
207	207	consecutive taxable years.
208	208	G. Married individuals filing separate returns for
209	209	a taxable year for which they could have filed a joint return
210	210	may each claim only one-half of the energy storage system
211	211	income tax credit that would have been claimed on a joint
212	212	return.
213	213	H. A taxpayer may be allocated the right to claim
214	214	an energy storage system income tax credit in proportion to the
215	215	taxpayer's ownership interest if the taxpayer owns an interest
216	216	in a business entity that is taxed for federal income tax
217	217	purposes as a partnership, limited liability company or S
218	218	corporation and that business entity has met all of the
219	219	requirements to be eligible for the credit. The total credit
220	220	claimed by all members of the partnership, limited liability
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249	249	company or S corporation shall not exceed the allowable credit
250	250	pursuant to this section.
251	251	I. A taxpayer allowed a tax credit pursuant to this
252	252	section shall report the amount of the credit to the department
253	253	in a manner required by the department.
254	254	J. The energy, minerals and natural resources
255	255	department shall provide to the taxation and revenue department
256	256	certification information for all taxpayers to whom
257	257	certificates are issued in a secure and regular manner as
258	258	agreed upon by both departments.
259	259	K. The department shall include the tax credit in
260	260	the tax expenditure budget compiled pursuant to Section 7-1-84
261	261	NMSA 1978.
262	262	L. As used in this section:
263	263	(1) "energy storage system" means a
264	264	stationary, commercially available, customer-sited system,
265	265	including a battery and a battery paired with on-site
266	266	generation, that is capable of retaining, storing and
267	267	delivering electrical energy by chemical, thermal, mechanical
268	268	or other means and:
269	269	(a) is installed as a stand-alone energy
270	270	storage system or is grid-tied; provided that if the system is
271	271	grid-tied, the system has the capability to provide grid
272	272	services via control and communication infrastructure;
273	273	(b) has been tested and certified by a
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302	302	nationally recognized testing laboratory; and
303	303	(c) has a rating of three kilowatt-hours
304	304	or greater; and
305	305	(2) "residential property" means real property
306	306	located in New Mexico and improved by a permanent structure of
307	307	one to four living units that are used primarily or designed
308	308	and intended to be used primarily for permanent human
309	309	habitation."
310	310	SECTION 2. A new section of the Corporate Income and
311	311	Franchise Tax Act is enacted to read:
312	312	"[NEW MATERIAL] ENERGY STORAGE SYSTEM CORPORATE INCOME TAX
313	313	CREDIT.--
314	314	A. For a taxable year prior to January 1, 2030, a
315	315	taxpayer that purchases and installs an energy storage system
316	316	on the taxpayer's commercial, industrial or agricultural
317	317	property in New Mexico may apply for, and the department may
318	318	allow, a credit against the taxpayer's tax liability imposed
319	319	pursuant to the Corporate Income and Franchise Tax Act. The
320	320	tax credit provided by this section may be referred to as the
321	321	"energy storage system corporate income tax credit".
322	322	B. The department may allow an energy storage
323	323	system corporate income tax credit of forty percent of the
324	324	purchase and installation costs of an energy storage system
325	325	certified pursuant to this section, up to a maximum amount of
326	326	one hundred fifty thousand dollars ($150,000) for a system
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355	355	installed on nonresidential property, including commercial,
356	356	industrial or agricultural property; provided that no more than
357	357	one system per property shall be eligible for the credit. If
358	358	the energy storage system is installed with a system that
359	359	generates energy, only the costs related to the energy storage
360	360	system shall be eligible for the credit.
361	361	C. A taxpayer that seeks to claim the tax credit
362	362	provided by this section shall, within twelve months following
363	363	the calendar year in which the system becomes operational,
364	364	apply for certification of eligibility from the energy,
365	365	minerals and natural resources department on forms and in the
366	366	manner prescribed by that department. The aggregate amount of
367	367	credits that may be certified pursuant to this section and
368	368	Section 1 of this 2025 act for any calendar year is six million
369	369	dollars ($6,000,000). Completed applications shall be
370	370	considered in the order received. The application shall
371	371	include proof of purchase and installation of an energy storage
372	372	system, that the system meets technical specifications and
373	373	requirements relating to safety, code and standards compliance,
374	374	lists of eligible components and any additional information
375	375	that the energy, minerals and natural resources department may
376	376	require to determine eligibility for the credit.
377	377	D. If the energy, minerals and natural resources
378	378	department determines that a taxpayer meets the requirements to
379	379	claim a tax credit pursuant to this section, that department
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408	408	shall issue a dated certificate of eligibility to the taxpayer
409	409	providing the amount of credit for which the taxpayer is
410	410	eligible and the taxable year for which the credit may be
411	411	claimed. If a taxpayer applies for and meets the requirements
412	412	for a tax credit pursuant to this section, but the maximum
413	413	aggregate amount of credits has been certified for that taxable
414	414	year, the energy, minerals and natural resources department
415	415	shall issue the taxpayer a certificate of eligibility for the
416	416	next taxable year in which there are available certifications.
417	417	E. To receive a tax credit provided by this
418	418	section, a taxpayer shall claim the credit on forms and in the
419	419	manner prescribed by the department. The claim shall include a
420	420	certification of eligibility issued pursuant to this section.
421	421	A taxpayer shall not be allowed to claim the tax credit for the
422	422	purchase and installation of the same energy storage system for
423	423	which an energy storage system income tax credit was claimed
424	424	pursuant to Section 1 of this 2025 act.
425	425	F. That portion of an energy storage system income
426	426	tax credit that exceeds a taxpayer's tax liability in the
427	427	taxable year in which the credit is claimed shall not be
428	428	refunded and may be carried forward for a maximum of five
429	429	consecutive taxable years.
430	430	G. A taxpayer allowed a tax credit pursuant to this
431	431	section shall report the amount of the credit to the department
432	432	in a manner required by the department.
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461	461	H. The energy, minerals and natural resources
462	462	department shall provide to the taxation and revenue department
463	463	certification information for all taxpayers to which
464	464	certificates are issued in a secure and regular manner as
465	465	agreed upon by both departments.
466	466	I. The department shall include the tax credit in
467	467	the tax expenditure budget compiled pursuant to Section 7-1-84
468	468	NMSA 1978.
469	469	J. As used in this section, "energy storage system"
470	470	means a stationary, commercially available, customer-sited
471	471	system, including a battery and a battery paired with on-site
472	472	generation, that is capable of retaining, storing and
473	473	delivering electrical energy by chemical, thermal, mechanical
474	474	or other means and:
475	475	(1) is installed as a stand-alone energy
476	476	storage system or is grid-tied; provided that if the system is
477	477	grid-tied, the system has the capability to provide grid
478	478	services via control and communication infrastructure;
479	479	(2) has been tested and certified by a
480	480	nationally recognized testing laboratory; and
481	481	(3) has a rating of three kilowatt-hours or
482	482	greater."
483	483	SECTION 3. DELAYED REPEAL.--Sections 1 and 2 of this act
484	484	are repealed effective January 1, 2031.
485	485	SECTION 4. APPLICABILITY.--The provisions of this act
486	486	.228901.4
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514	514	apply to taxable years beginning on or after January 1, 2025.
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