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HOUSE BILL 51
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Debra M. Sariñana
AN ACT
RELATING TO TAXATION; CREATING THE ENERGY STORAGE SYSTEM INCOME
TAX CREDIT; CREATING THE ENERGY STORAGE SYSTEM 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] ENERGY STORAGE SYSTEM INCOME TAX CREDIT.--
A. For a taxable year prior to January 1, 2030, a
taxpayer who is not a dependent of another individual and
purchases and installs an energy storage system on the
taxpayer's residential, commercial, industrial or agricultural
property in New Mexico may apply for, and the department may
allow, a credit against the taxpayer's tax liability imposed
pursuant to the Income Tax Act. The tax credit provided by
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this section may be referred to as the "energy storage system
income tax credit".
B. The department may allow an energy storage
system income tax credit of forty percent of the purchase and
installation costs of an energy storage system certified
pursuant to this section, up to a maximum amount of credit of
six thousand dollars ($6,000) for a system installed on
residential property and one hundred fifty thousand dollars
($150,000) for a system installed on nonresidential property,
including commercial, industrial or agricultural property;
provided that no more than one system per property shall be
eligible for the credit. If the energy storage system is
installed with a system that generates energy, only the costs
related to the energy storage system shall be eligible for the
credit.
C. A taxpayer who seeks to claim the tax credit
provided by this section shall, within twelve months following
the calendar year in which the system becomes operational,
apply for certification of eligibility from the energy,
minerals and natural resources department on forms and in the
manner prescribed by that department. The aggregate amount of
credits that may be certified pursuant to this section and
Section 2 of this 2025 act for any calendar year is six million
dollars ($6,000,000). The energy, minerals and natural
resources department shall publish to its website on a regular
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basis the annual aggregate amount of energy storage system
income tax credits and energy storage system corporate income
tax credits that have been certified pursuant to this 2025 act
for each calendar year in which credits are certified.
Completed applications shall be considered in the order
received. The application shall include proof of purchase and
installation of an energy storage system, that the system meets
technical specifications and requirements relating to safety,
code and standards compliance, lists of eligible components and
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 a taxpayer meets the requirements to
claim a tax credit pursuant to this section, that department
shall issue a dated certificate of eligibility to the taxpayer
providing the amount of credit for which the taxpayer is
eligible and the taxable year for which the credit may be
claimed. If a taxpayer applies for and meets the requirements
for a tax credit pursuant to this section, but the maximum
aggregate amount of credits has been certified for that taxable
year, the energy, minerals and natural resources department
shall issue the taxpayer a certificate of eligibility for the
next taxable year in which there are available certifications.
E. To receive a tax credit provided by this
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section, a taxpayer shall claim the credit on forms and in the
manner prescribed by the department. The claim shall include a
certification of eligibility issued pursuant to this section.
A taxpayer shall not be allowed to claim the tax credit for the
purchase and installation of the same energy storage system for
which an energy storage system corporate income tax credit was
claimed pursuant to Section 2 of this 2025 act.
F. That portion of an energy storage system income
tax credit that exceeds a taxpayer's tax liability in the
taxable year in which the credit is claimed shall not be
refunded and may be carried forward for a maximum of five
consecutive taxable years.
G. 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 energy storage system
income tax credit that would have been claimed on a joint
return.
H. A taxpayer may be allocated the right to claim
an energy storage system income 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, limited liability company or S
corporation 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, limited liability
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company or S corporation shall not exceed the allowable credit
pursuant to this section.
I. A taxpayer allowed a tax credit pursuant to this
section shall report the amount of the credit to the department
in a manner required by the department.
J. The energy, minerals and natural resources
department shall provide to the taxation and revenue department
certification information for all taxpayers to whom
certificates are issued in a secure and regular manner as
agreed upon by both departments.
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) "energy storage system" means a
stationary, commercially available, customer-sited system,
including a battery and a battery paired with on-site
generation, that is capable of retaining, storing and
delivering electrical energy by chemical, thermal, mechanical
or other means and:
(a) is installed as a stand-alone energy
storage system or is grid-tied; provided that if the system is
grid-tied, the system has the capability to provide grid
services via control and communication infrastructure;
(b) has been tested and certified by a
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nationally recognized testing laboratory; and
(c) has a rating of three kilowatt-hours
or greater; and
(2) "residential property" means real property
located in New Mexico and improved by a permanent structure of
one to four living units that are used primarily or designed
and intended to be used primarily for permanent human
habitation."
SECTION 2. A new section of the Corporate Income and
Franchise Tax Act is enacted to read:
"[NEW MATERIAL] ENERGY STORAGE SYSTEM CORPORATE INCOME TAX
CREDIT.--
A. For a taxable year prior to January 1, 2030, a
taxpayer that purchases and installs an energy storage system
on the taxpayer's commercial, industrial or agricultural
property in New Mexico may apply for, and the department may
allow, a credit against the taxpayer's tax liability imposed
pursuant to the Corporate Income and Franchise Tax Act. The
tax credit provided by this section may be referred to as the
"energy storage system corporate income tax credit".
B. The department may allow an energy storage
system corporate income tax credit of forty percent of the
purchase and installation costs of an energy storage system
certified pursuant to this section, up to a maximum amount of
one hundred fifty thousand dollars ($150,000) for a system
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installed on nonresidential property, including commercial,
industrial or agricultural property; provided that no more than
one system per property shall be eligible for the credit. If
the energy storage system is installed with a system that
generates energy, only the costs related to the energy storage
system shall be eligible for the credit.
C. A taxpayer that seeks to claim the tax credit
provided by this section shall, within twelve months following
the calendar year in which the system becomes operational,
apply for certification of eligibility from the energy,
minerals and natural resources department on forms and in the
manner prescribed by that department. The aggregate amount of
credits that may be certified pursuant to this section and
Section 1 of this 2025 act for any calendar year is six million
dollars ($6,000,000). Completed applications shall be
considered in the order received. The application shall
include proof of purchase and installation of an energy storage
system, that the system meets technical specifications and
requirements relating to safety, code and standards compliance,
lists of eligible components and 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 a taxpayer meets the requirements to
claim a tax credit pursuant to this section, that department
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shall issue a dated certificate of eligibility to the taxpayer
providing the amount of credit for which the taxpayer is
eligible and the taxable year for which the credit may be
claimed. If a taxpayer applies for and meets the requirements
for a tax credit pursuant to this section, but the maximum
aggregate amount of credits has been certified for that taxable
year, the energy, minerals and natural resources department
shall issue the taxpayer a certificate of eligibility for the
next taxable year in which there are available certifications.
E. To receive a 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
certification of eligibility issued pursuant to this section.
A taxpayer shall not be allowed to claim the tax credit for the
purchase and installation of the same energy storage system for
which an energy storage system income tax credit was claimed
pursuant to Section 1 of this 2025 act.
F. That portion of an energy storage system income
tax credit that exceeds a taxpayer's tax liability in the
taxable year in which the credit is claimed shall not be
refunded and may be carried forward for a maximum of five
consecutive taxable years.
G. A taxpayer allowed a tax credit pursuant to this
section shall report the amount of the credit to the department
in a manner required by the department.
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H. The energy, minerals and natural resources
department shall provide to the taxation and revenue department
certification information for all taxpayers to which
certificates are issued in a secure and regular manner as
agreed upon by both departments.
I. The department shall include the tax credit in
the tax expenditure budget compiled pursuant to Section 7-1-84
NMSA 1978.
J. As used in this section, "energy storage system"
means a stationary, commercially available, customer-sited
system, including a battery and a battery paired with on-site
generation, that is capable of retaining, storing and
delivering electrical energy by chemical, thermal, mechanical
or other means and:
(1) is installed as a stand-alone energy
storage system or is grid-tied; provided that if the system is
grid-tied, the system has the capability to provide grid
services via control and communication infrastructure;
(2) has been tested and certified by a
nationally recognized testing laboratory; and
(3) has a rating of three kilowatt-hours or
greater."
SECTION 3. DELAYED REPEAL.--Sections 1 and 2 of this act
are repealed effective January 1, 2031.
SECTION 4. APPLICABILITY.--The provisions of this act
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apply to taxable years beginning on or after January 1, 2025.
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