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 storage capacity. Additionally, the bill requires certification of eligibility from the energy, minerals, and natural resources department, which includes proof of installation and compliance with safety standards.

Furthermore, the bill establishes a new corporate income tax credit with similar provisions, allowing businesses and agricultural enterprises to claim credits for solar system installations. The aggregate amount of credits for both the individual and corporate tax credits is capped at $30 million per year. The bill also stipulates that any excess credit beyond a taxpayer's liability will be refunded, and it mandates reporting requirements to ensure transparency in the tax expenditure budget. 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