This bill amends the definitions and provisions related to the "Advanced Energy Equipment Income Tax Credit" and the "Advanced Energy Equipment Corporate Income Tax Credit" in New Mexico. It introduces a new definition of "advanced energy product," which includes various components related to solar and wind energy, battery components, fusion machines, critical minerals, and inverters. The bill specifies that taxpayers making qualified expenditures for a manufacturing facility in New Mexico can claim a tax credit equal to the lesser of 20% of their qualified expenditures or $25 million, with eligibility for the credit applicable to taxable years beginning on or after January 1, 2025, and before January 1, 2033.

Additionally, the bill mandates that the tax credits be included in the tax expenditure budget, ensuring transparency regarding their annual aggregate cost. It also outlines the process for obtaining preliminary and final certification for the tax credits, including the requirement for taxpayers to report on the continued operations of their manufacturing facilities. The provisions of this act will apply to taxable years starting on or after January 1, 2026.

Statutes affected:
introduced version: 7-2-18.39, 7-2A-19.3