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 caps 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 each year is limited to $6 million.

The bill outlines the application process, eligibility requirements, and stipulations regarding the claiming of credits, including that taxpayers cannot claim both credits for the same energy storage system. Additionally, any unused portion of the credit can be carried forward for up to five years. The provisions of this act will take effect for taxable years beginning on or after January 1, 2025, and both sections of the act will be repealed effective January 1, 2031.