This bill establishes two new tax credits in New Mexico: the School Solar Income Tax Credit and the School Solar Corporate Income Tax Credit, both aimed at incentivizing the installation of photovoltaic systems on public school properties and public post-secondary educational institutions. For taxable years prior to January 1, 2037, eligible taxpayers can claim a credit equal to 40% of the installation costs or the appraised value of the photovoltaic system. The total aggregate amount of these credits is capped at $300 million, with a maximum of $100 million available for certification in any calendar year prior to 2028. Taxpayers must apply for certification from the energy, minerals, and natural resources department, providing proof of installation and compliance with safety and technical standards.

The bill outlines the application process, including the necessary documentation required for certification, and stipulates that any portion of the tax credit exceeding a taxpayer's liability will be refunded. Additionally, the credits can be transferred between taxpayers, and the bill includes provisions for married individuals filing separately and for partnerships or limited liability companies. The provisions of this act will apply to taxable years beginning on or after January 1, 2025.