This bill amends the existing laws governing tax credits for geothermal energy production in New Mexico by renaming the "Geothermal Electricity Generation Income and Corporate Income Tax Credits" to "Geothermal Energy Production Income and Corporate Income Tax Credits." It introduces a new tax credit schedule that adjusts the credit amount based on the number of kilowatt-hours produced, with specific rates established for each of the first ten taxable years. The total annual aggregate amount of credits that can be certified is increased to $55 million, with a portion specifically reserved for tribal and small businesses.

Additionally, the bill allows for the transfer of eligibility certificates for the tax credits, enabling taxpayers to sell or exchange their credits, and streamlines the application process by requiring certification from the energy, minerals, and natural resources department in an electronic format. It clarifies that any excess tax credit beyond a taxpayer's liability cannot be refunded but can be carried forward for up to three years. The bill also updates definitions related to geothermal energy production and mandates that the tax credit be included in the tax expenditure budget, with the provisions applying to taxable years beginning on or after January 1, 2026.

Statutes affected:
introduced version: 7-2-18.38, 7-2A-24.1