This bill amends the New Solar Market Development Income Tax Credit and introduces a new corporate income tax credit aimed at promoting the installation of solar thermal and photovoltaic systems in New Mexico. Key changes include expanding eligibility to taxpayers who install photovoltaic systems and sell electricity under power purchase agreements. The bill increases the tax credit amount to 20% for photovoltaic systems with at least fifteen kilowatt-hours of storage capacity, while the maximum credit allowed is set at $6,000 per property per taxable year, or $12,000 for qualifying systems. Additionally, the bill mandates that the systems must be certified and inspected to qualify for the credit.

Furthermore, the bill establishes a new corporate income tax credit with similar provisions to the individual income tax credit, allowing businesses to claim credits for solar installations. The aggregate amount of credits available for both individual and corporate tax credits is capped at $30 million per year. The bill also includes provisions for the transfer of eligibility certificates and requires reporting on the credits in the tax expenditure budget. The changes will apply to taxable years beginning on or after January 1, 2025.

Statutes affected:
introduced version: 7-2-18.31