The bill amends the New Mexico Income Tax Act to increase the New Solar Market Development Income Tax Credit. Key changes include the extension of eligibility for the credit to taxpayers who purchase and install solar thermal or photovoltaic systems starting from March 1, 2026, rather than 2020. The credit amount is increased from ten percent to thirty percent of the purchase and installation costs, with a cap raised from $6,000 to $15,000 per taxpayer per taxable year. Additionally, the annual aggregate amount of credits that may be certified is set at $30 million, with applications for certification being denied once this limit is reached.

The bill also outlines the process for taxpayers to apply for certification of eligibility for the tax credit, which includes submitting proof of purchase and installation, as well as meeting specific technical specifications. The provisions of this act will apply to taxable years beginning on or after January 1, 2026, ensuring that the increased credit and eligibility criteria will take effect in the near future.

Statutes affected:
introduced version: 7-2-18.31