This 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 applicable for taxable years prior to January 1, 2030. The income tax credit allows individual taxpayers who purchase and install energy storage systems on their properties to receive a credit of 40% of the installation costs, capped at $6,000 for residential properties and $150,000 for nonresidential properties. Similarly, the corporate income tax credit provides the same percentage and cap for businesses installing energy storage systems. Both credits require certification from the energy, minerals, and natural resources department, and the total amount of credits available for certification each year is limited to $6 million.

The bill outlines the application process for taxpayers, including the need for proof of purchase and compliance with technical specifications. It also specifies that taxpayers cannot claim both credits for the same energy storage system and that any unused portion of the credit can be carried forward for up to five years. Additionally, the bill includes provisions for reporting and certification between departments and establishes a delayed repeal of the credits effective January 1, 2031. The provisions of this act will apply to taxable years beginning on or after January 1, 2025.