The proposed 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 for both 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 various proofs of installation and compliance.

Additionally, the bill outlines the process for claiming the credits, including the issuance of a certificate of eligibility, the ability to transfer credits, and provisions for refunds if the credit exceeds the taxpayer's liability. The definitions of "photovoltaic system," "public school," and "public school property" are also included to clarify the scope of the credits. The provisions of this act will apply to taxable years beginning on or after January 1, 2025.