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 application process, including the requirement for proof of eligibility and the issuance of a certificate of eligibility by the department. Additionally, it includes stipulations for married individuals filing separately, allocation of credit for business entities, and the reporting of the credit amount to the department. The credit will be included in the tax expenditure budget and is set to be repealed effective January 1, 2035, with applicability to taxable years beginning on or after January 1, 2025.