New Mexico SB 55: SOLAR MARKET INCOME TAX CREDIT

Bill Text

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SENATE BILL 55
57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
INTRODUCED BY
Mimi Stewart and Reena Szczepanski
and Micaelita Debbie O’Malley and Elizabeth "Liz" Stefanics
and Nicole Tobiassen
AN ACT
RELATING TO TAXATION; INCREASING THE AMOUNT OF THE NEW SOLAR
MARKET DEVELOPMENT INCOME TAX CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-2-18.31 NMSA 1978 (being Laws 2020,
Chapter 13, Section 1, as amended) is amended to read:
"7-2-18.31. NEW SOLAR MARKET DEVELOPMENT INCOME TAX
CREDIT.--
A. For taxable years ending prior to January 1,
2032, a taxpayer who is not a dependent of another individual
and who, on or after March 1, [2020] 2026, purchases and
installs a solar thermal system or a photovoltaic system in a
residence, business or agricultural enterprise in New Mexico
owned by that taxpayer or by a federally recognized Indian
nation, tribe or pueblo and held in leasehold by that taxpayer
.232297.3

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may claim, and the department may allow, a credit against the
taxpayer's tax liability imposed pursuant to the Income Tax Act
in an amount provided in Subsection C of this section. The tax
credit provided by this section may be referred to as the "new
solar market development income tax credit".
B. The purpose of the new solar market development
income tax credit is to encourage the installation of solar
thermal and photovoltaic systems in residences, businesses and
agricultural enterprises.
C. The department may allow a new solar market
development income tax credit of [ten] thirty percent of the
purchase and installation costs of a solar thermal or
photovoltaic system.
D. The new solar market development income tax
credit shall not exceed [six thousand dollars ($6,000)] fifteen
thousand dollars ($15,000) per taxpayer per taxable year. The
department shall allow a tax credit only for solar thermal and
photovoltaic systems certified pursuant to Subsection E of this
section.
E. Subject to the limitation provided in Subsection
F of this section, a taxpayer shall apply for certification of
eligibility for the new solar market development income tax
credit from the energy, minerals and natural resources
department on forms and in the manner prescribed by that
department. Completed applications shall be considered in the
.232297.3
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order received. The application shall include proof of
purchase and installation of a solar thermal or photovoltaic
system, that the system meets technical specifications and
requirements relating to safety, code and standards compliance,
solar collector orientation and sun exposure, minimum system
sizes, system applications and lists of eligible components and
any additional information that the energy, minerals and
natural resources department may require to determine
eligibility for the credit. A dated certificate of eligibility
shall be issued to the taxpayer providing the amount of the new
solar market development income tax credit for which the
taxpayer is eligible and the taxable year in which the credit
may be claimed. A certificate of eligibility for a new solar
market development income tax credit may be sold, exchanged or
otherwise transferred to another taxpayer for the full value of
the credit. The parties to such a transaction shall notify the
department of the sale, exchange or transfer within ten days of
the sale, exchange or transfer. The energy, minerals and
natural resources department shall provide the department
appropriate information for all certificates of eligibility in
a secure manner on regular intervals agreed upon by both
departments.
F. The annual aggregate amount of credits that may
be certified pursuant to Subsection E of this section in a
calendar year is [as follows] thirty million dollars
.232297.3
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($30,000,000), and applications for certification received
after [these limitations have] this limitation has been met
shall not be approved.
[(1) for calendar years 2020 through 2023,
twelve million dollars ($12,000,000) for each calendar year;
provided that if this limitation has been met for any of those
calendar years, an additional total of twenty million dollars
($20,000,000) in credits may be certified for all of those
calendar years; and provided further that credits certified
pursuant to this paragraph shall be claimed only for taxable
year 2023; and
(2) for calendar years 2024 and thereafter,
thirty million dollars ($30,000,000) for each calendar year.]
G. A taxpayer may claim a new solar market
dev