SB 79 — SOLAR MARKET DEVELOPMENT TAX CREDIT

SENATE BILL 79 53RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION , 2018 INTRODUCED BY Mimi Stewart 6 8 10 AN ACT RELATING TO TAXATION;

156 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 7-2-18.14 NMSA 1978 (being Laws 2006, e t 17 Chapter 93, Section 1, as amended) is repealed and a new w l n d 18 Section 7-2-18.14 NMSA 1978 is enacted to read:

= = 19 a l "7-2-18.14.

[NEW MATERIAL ] SOLAR MARKET DEVELOPMENT i a e r 20 INCOME TAX CREDIT.-- a t m m 21 A.

A taxpayer who is not a dependent of another d r e 22 individual and who purchases and installs a solar thermal c e s k 23 system or a photovoltaic system in a residence, business or e a n b 24 agricultural enterprise after January 1, 2018 may apply for, u [ and the department may allow, a credit against the taxpayer's .209278.1 tax liability imposed pursuant to the Income Tax Act in an amount provided in Subsection C of this section.

SB 79 C.

The department may allow a solar market Page 1 development income tax credit in the following amounts of the purchase and installation costs of a solar thermal or photovoltaic system:

(1) if the system is installed prior to January 1, 2021,2023, up to ten percent of the purchase and installation costs of the system;

and (2) if the system is installed on or after e e 17 January 1, 20212023 and prior to January 1, 2024,2028, up to nineeight e e n d 18 percent of the purchase and installation costs of the system;system.

= = l ] 19 (3) if the system is installed on or after a l r i 20 January 1, 2024 and prior to January 1, 2027, up to eight t e a t percent of the purchase and installation costs of the system;

m m 21 e d r e 22 (4) if the system is installed on or after c e r c 23 January 1, 2027 and prior to January 1, 2030, up to seven e a n b 24 percent of the purchase and installation costs of the system;

u [ and .209278.1 - 2 - (5) if the system is installed on or after January 1, 2030 and prior to January 1, 2033, up to six percent of the purchase and installation costs of the system.

e e 17 To receive a solar market development income tax credit, a e e n d 18 taxpayer shall apply to the department on forms and in the = = l ] 19 manner prescribed by the department within twelve monthsSB a79 lPage r2 imonths 20 following the calendar year in which the system was installed.

t e a t The application shall include a certification made pursuant to m m 21 e d r e 22 Subsection J of this section.

c e r c 23 G.

That portion of a solar market development e a n b 24 income tax credit that exceeds a taxpayer's tax liability in u [ the taxable year in which the credit is claimed may be carried .209278.1 - 3 - forward for a maximum of five consecutive taxable years.

The energy, minerals and natural resources e e 17 department shall adopt rules establishing procedures to provideSB e79 ePage n3 dprovide 18 certification of solar thermal and photovoltaic systems for the = = l ] 19 purposes of obtaining a solar market development income tax a l r i 20 credit.

The rules shall address technical specifications and t e a t requirements relating to safety, code and standards compliance, m m 21 e d r e 22 solar collector orientation and sun exposure, minimum system c e r c 23 sizes, system applications and lists of eligible components.

e a n b 24 The energy, minerals and natural resources department may u [ modify the specifications and requirements as necessary to .209278.1 - 4 - maintain a high level of system quality and performance.

SB 79 Page 4 (1) "photovoltaic system" means an energy e e 17 system that collects or absorbs sunlight for conversion into e e n d 18 electricity;

and = = l ] 19 (2) "solar thermal system" means an energy a l r i 20 system that collects or absorbs solar energy for conversion t e a t into heat for the purposes of space heating, space cooling or m m 21 e d r e 22 water heating." c e r c 23 SECTION 2.

TEMPORARY PROVISION--EXHAUSTION OF CREDITS.-- e a n b 24 A.

If a taxpayer has met the eligibility u [ requirements to apply for and claim a solar market development .209278.1 - 5 - tax credit pursuant to Section 7-2-18.14 NMSA 1978 as that section was in effect on December 31, 2016, the taxpayer may claim, and the taxation and revenue department may approve, the credit for those periods, including amounts that may be carried forward pursuant to Section 7-2-18.14 NMSA 1978 as that section was in effect on December 31, 2016.

SB 79 Page 5 SECTION 3.

eSB e79 17Page - 6 -5 e7 e9 n25 d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .209278.1