The proposed bill establishes a new income tax credit in New Mexico for taxpayers who purchase and permanently install backup power generators. This credit, referred to as the "backup power generator income tax credit," allows eligible taxpayers to claim a credit equal to fifty percent of the purchase and installation costs of the generator, provided they are not dependents of another individual and the installation occurs on or after March 1, 2025. The total annual aggregate amount of credits that can be certified is capped at five million dollars, and taxpayers must apply for certification through the energy, minerals, and natural resources department.

The bill also outlines specific provisions regarding the credit's application and distribution. Taxpayers can claim the credit in the year of installation, and any excess credit beyond their tax liability will be refunded. Additionally, married individuals filing separately can only claim half of the credit they would have received if filing jointly. The bill includes a delayed repeal clause, stating that the provisions will be repealed effective January 1, 2035, and it applies to taxable years beginning on or after January 1, 2025.