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 per property per taxable year is set at $6,000, or $12,000 for systems with the specified storage capacity. Additionally, the bill mandates that 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 and agricultural enterprises 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 outlines the application process for certification and the reporting requirements for taxpayers claiming these credits. The provisions of this act will apply to installations made in taxable years beginning on or after January 1, 2025.

Statutes affected:
introduced version: 7-2-18.31