The proposed bill establishes two new tax credits in New Mexico: the Energy Storage System Income Tax Credit and the Energy Storage System Corporate Income Tax Credit. Both credits are available for taxpayers who purchase and install energy storage systems on their residential or nonresidential properties, respectively, prior to January 1, 2030. The income tax credit allows for a 40% credit on the purchase and installation costs, capped at $6,000 for residential systems and $150,000 for nonresidential systems. The corporate tax credit mirrors these provisions for commercial, industrial, or agricultural properties. Taxpayers must apply for certification within twelve months of the system becoming operational, and the total amount of credits available each year is limited to $6 million.

Additionally, the bill outlines the application process, eligibility requirements, and stipulations regarding the claiming of credits. Notably, taxpayers cannot claim both credits for the same energy storage system, and any unused credit can be carried forward for up to five years. The bill also includes a delayed repeal of the tax credits effective January 1, 2031, and specifies that the provisions apply to taxable years beginning on or after January 1, 2025.