HB 15 — SUSTAINABLE BUILDING TAX CREDIT

b r e t º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 8 - e a n e d r e l u [ A d HTRC/HB 15 the building owner is eligible.

If the requirements of this section have been complied with, the department shall issue to the building owner a document granting a [new ] 2015 sustainable building tax credit.

If the approved amount of a [new ] 2015 sustainable building tax credit for a taxpayer in a taxable year represented by a document issued pursuant to Subsection K of this section is:

hHTRC/HB 15/a Page 8 (1) less than one hundred thousand dollars g o ($100,000), a maximum of twenty-five thousand dollars ($25,000) t hr g e shall be applied against the taxpayer's income tax liability i k h r i s for the taxable year for which the credit is approved and the h , t, next three subsequent taxable years as needed depending on the e u g e b l amount of credit;

or e e h n d d i (2) one hundred thousand dollars ($100,000) or = = o h l ] b ,d i a º e more, increments of twenty-five percent of the total credit r i = r t e w d amount in each of the four taxable years, including the taxable myear afor nwhich othe dcredit mis :approved and the three subsequent taxable years, shall be applied against the taxpayer's income tax liability.

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 9 - e a n e d r e l u [ A d HTRC/HB 15 year for which the credit is approved and the three subsequent taxable years, shall be applied against the taxpayer's income tax liability.

If the sum of all [new ] 2015 sustainable building tax credits that can be applied to a taxable year for a taxpayer, calculated according to Paragraph (1) or (2) of Subsection L of this section, exceeds the taxpayer's income tax liability for that taxable year, the excess may be carried forward for a period of up to seven years.

A taxpayer who otherwise qualifies and claims a [new ] 2015 sustainable building tax credit with respect to a sustainable building owned by a partnership or other business association of which the taxpayer is a member may claim a credit only in proportion to that taxpayer's interest in the partnership or association.

The total credit claimed in the aggregate by all members of the partnership or association withHTRC/HB h15/a Page 9 with respect to the sustainable building shall not exceed the amount g o of the credit that could have been claimed by a sole owner of t hr g e the property.

i k h r i s O.

Married individuals who file separate returns h , t, for a taxable year in which they could have filed a joint e u g e b l return may each claim only one-half of the [new ] 2015 e e h n d d i sustainable building tax credit that would have been allowed on = = o h l ] b ,d i a º e a joint return.

r i = r t e w d P.

The department shall compile an annual report on mthe a2015 nsustainable obuilding dtax mcredit :created pursuant to this section that shall include the number of taxpayers approved by the department to receive the tax credit, the aggregate amount of tax credits approved and any other information necessary to evaluate the effectiveness of the tax credit.

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 10 - e a n e d r e l u [ A d HTRC/HB 15 the [new ] 2015 sustainable building tax credit created pursuant to this section that shall include the number of taxpayers approved by the department to receive the tax credit, the aggregate amount of tax credits approved and any other information necessary to evaluate the effectiveness of the tax credit.

(1) "build green New Mexico rating system" means the certification standards adopted by build green New Mexico in November 2014, which include water conservation hHTRC/HB 15/a Page 10 standards;

g o (2) "LEED-CI" means the LEED rating system for t hr g e commercial interiors;

i k h r i s (3) "LEED-CS" means the LEED rating system for h , t, the core and shell of buildings;

e u g e b l (4) "LEED-EB" means the LEED rating system for e e h n d d i existing buildings;

= = o h l ] b ,d i a º e (5) "LEED gold" means the rating in compliance r i = r t e w d with, or exceeding, the second-highest rating awarded by the mLEED acertification nprocess; o d m :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 11 - e a n e d r e l u [ A d HTRC/HB 15 LEED certification process;

(11) "manufactured housing" means a hHTRC/HB 15/a Page 11 multisectioned home that is:

g o (a) a manufactured home or modular home;

t hr g e (b) a single-family dwelling with a i k h r i s heated area of at least thirty-six feet by twenty-four feet and h , t, a total area of at least eight hundred sixty-four square feet;

e u g e b l (c) constructed in a factory to the e e h n d d i standards of the United States department of housing and urban = = o h l ] b ,d i a º e development, the National Manufactured Housing Construction and r i = r t e w d Safety Standards Act of 1974 and the Housing and Urban mDevelopment aZone nCode o2 dor mNew :Mexico construction codes up to the date of the unit's construction;

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 12 - e a n e d r e l u [ A d HTRC/HB 15 Development Zone Code 2 or New Mexico construction codes up to the date of the unit's construction;

and (c) the United States environmental protection agency for ENERGY STAR-certified manufactured HTRC/HB 15/a Page 12 homes;

h (14) "sustainable building" means either a g o sustainable commercial building or a sustainable residential t hr g e building;

i k h r i s (15) "sustainable commercial building" means a h , t, multifamily dwelling unit, as registered and certified under e u g e b l the LEED-H or build green New Mexico rating system, that is e e h n d d i certified by the United States green building council as LEED-H = = o h l ] b ,d i a º e silver or higher or by build green New Mexico as silver or r i = r t e w d higher and has achieved a home energy rating system index of msixty or lower as developed by the residential energy services network or a nbuilding othat dhas mbeen :registered and certified under the LEED-NC, LEED-EB, LEED-CS or LEED-CI rating system and that:

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 13 - e a n e d r e l u [ A d HTRC/HB 15 sixty or lower as developed by the residential energy services network or a building that has been registered and certified under the LEED-NC, LEED-EB, LEED-CS or LEED-CI rating system and that:

and (c) has reduced energy consumption beginning January 1, 2012, by sixty percent based on the national average for that building type as published by the HTRC/HB 15/a Page 13 United States department of energy as substantiated by the United States environmental protection agency target finder energy performance results form, dated no sooner than the schematic design phase of development;

h u » r (a) a building used as a single-family t h g e residence as registered and certified under the build green New l i h r Mexico or LEED-H rating system that:

1) is certified by the i s h , e h United States green building council as LEED-H silver or higher t u g e b l or by build green New Mexico as silver or higher;

2) has e e , gh n d d i achieved a home energy rating system index of sixty or lower as = = o h l ] b ,d i a º r developed by the residential energy services network;

3) has e r = t e w d indoor plumbing fixtures and water-using appliances that, on maverage, ahave nflow orates dequal mto :or lower than the flow rates required for certification by WaterSense;

b r e t º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 14 - e a n e d r e l u [ A d HTRC/HB 15 average, have flow rates equal to or lower than the flow rates required for certification by WaterSense;

or (b) manufactured housing that is ENERGY STAR-qualified by the United States environmental protection HTRC/HB 15/a Page 14 agency;

and (18) "WaterSense" means a program created by the federal environmental protection agency that certifies h water-using products that meet the environmental protection g o agency's criteria for efficiency and performance." t hr g e SECTION 2.

A new section of the Income Tax Act is enacted i k h r i s to read:

h"2021 , t, "[NEW MATERIAL] 2021 SUSTAINABLE BUILDING TAX CREDIT.-- e u g e b l A.

The tax credit provided by this section may be e e h n d d i referred to as the "2021 sustainable building tax credit".

For =taxable =years oprior hto lJanuary ]1, b2030, ,d i a ºtaxpayer ewho taxableis yearsa priorbuilding toowner Januaryand 1,files STBTCºan 2027»STBTCincome rtax ireturn =is religible tto ebe wgranted da STBTCº2021 2030»STBTCsustainable ,building atax taxpayercredit whoby isthe adepartment buildingif ownerthe andrequirements mof athis nsection oare dmet. m :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 15 - e a n e d r e l u [ A d HTRC/HB 15 files an income tax return is eligible to be granted a 2021 sustainable building tax credit by the department if the requirements of this section are met.

The tax credit provided in this section may not be HTRC/HB 15/a Page 15 claimed with respect to the same sustainable building for which the 2021 sustainable building tax credit provided in the Corporate Income and Franchise Tax Act or the 2015 sustainable building tax credit pursuant to the Income Tax Act or the Corporate Income and Franchise Tax Act has been claimed.

The amount of a 2021 sustainable building tax h u » r credit shall be determined as follows:

t h g e (1) for the construction of a new sustainable l i h r commercial building that is broadband ready and electric i s h , e h vehicle ready STBTCº and is completed on or after April 1, t2023, u g e b l 2023»STBTC , the amount of credit shall be calculated:

e e , gh n d d i (a) based on the certification level the = = o h l ] b ,d i a º r building has achieved in the rating level and the amount of e r = t e w d qualified occupied square footage in the building, as indicated mon athe nfollowing ochart: d m :

bRating rLevel eQualified tTax ºCredit oOccupied tper nSquare =Square .219699.5AICFootage MarchFoot 15,LEED-NC 2021Platinum (3:01pm)First s10,000 k$5.25 mNext e40,000 -$2.25 16Over -50,000 eup ato n200,000 e$1.00 dLEED-EB ror eCS lPlatinum uFirst [10,000 A$3.40 dNext 40,000 $1.30 HTRC/HB 1515/a onPage the16 followingOver chart:50,000 up to 200,000 $0.35 LEED-CI Platinum First 10,000 $1.50 Next 40,000 $0.40 Over 50,000 up to 200,000 $0.30 LEED-NC Gold First 10,000 $3.00 Next 40,000 $1.00 Over 50,000 up to 200,000 $0.25 LEED-EB or -CS Gold First 10,000 $2.00 Next 40,000 $1.00 Over 50,000 up to 200,000 $0.25 LEED-CI Gold First 10,000 $0.90 Next 40,000 $0.40 Over 50,000 up to 200,000 $0.10;

Rating Level Qualified Tax Credit Occupied per Square Square Footage Foot LEED-NC Platinum First 10,000 $5.25 Next 40,000 $2.25 Over 50,000 up to 200,000 $1.00 LEED-EB or CS Platinum First 10,000 $3.40 Next 40,000 $1.30 Over 50,000 up to 200,000 $0.35 LEED-CI Platinum First 10,000 $1.50 Next 40,000 $0.40 Over 50,000 up to 200,000 $0.30 h LEED-NC Gold First 10,000 $3.00 g o Next 40,000 $1.00 t hr g e Over 50,000 i k h r i s up to 200,000 $0.25 h , t, LEED-EB or -CS Gold First 10,000 $2.00 e u g e b l Next 40,000 $1.00 e e h n d d i Over 50,000 = = o h l ] b ,d i a º e up to 200,000 $0.25 r i = r t e w d LEED-CI Gold First 10,000 $0.90 m a n o d m :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 17 - e a n e d r e l u [ A d HTRC/HB 15 Next 40,000 $0.40 Over 50,000 up to 200,000 $0.10;

Additional Criteria Qualified Tax Credit Occupied per Square Square Footage Foot Fully Electric Building First 50,000 $1.00 HTRC/HB 15/a Page 17 Over 50,000 up to 200,000 $0.50 Zero Carbon, Energy, Waste or Water Certified First 50,000 $0.25 Over 50,000 up to 200,000 $0.10;

h (2) for the renovation of a commercial g o building that was built at least ten years prior to the date of t hr g e the renovation, has twenty thousand square feet or more of i k h r i s space in which temperature is controlled and is broadband ready h , t, and electric vehicle ready, the amount of credit shall be e u g e b l calculated by multiplying two dollars twenty-five cents ($2.25) e e h n d d i by the amount of qualified occupied square footage in the = = o h l ] b ,d i a º e building, up to a maximum of one hundred fifty thousand dollars r i = r t e w d ($150,000) per renovation;

provided that the renovation reduces mtotal aenergy nand opower dcosts mby :fifty percent when compared to the most current energy standard for buildings except low-rise residential buildings, as developed by the American society of heating, refrigerating and air- conditioning engineers;

b(3) efor dthe sinstallation ºof othe tfollowing nenergy-conserving =products .219699.5AICto Marchan 15,existing 2021commercial (3:01pm)building swith kless mthan etwenty -thousand 18square -feet eof aspace nin ewhich dtemperature ris econtrolled lthat uis [broadband Aready, dthe HTRC/HBamount 15of totalcredit energyshall andbe powerbased costson bythe fiftycost percentof when compared to the mostproduct currentHTRC/HB energy15/a standardPage for18 buildingsinstalled, exceptwhich low-riseshall residentialinclude buildings,installation ascosts, developedand byif the Americanbuilding societyis ofaffordable heating,housing, refrigeratingper andproduct air-conditioninginstalled: engineers;

(3)Product forAmount theof installationCredit ofAffordable theNon-Affordable followingHousing energy-conservingHousing productsEnergy toStar anAir existingSource commercialHeat buildingPump with$2,000 less$1,000 thanEnergy twentyStar thousandGround squareSource feetHeat Pump $2,000 $1,000 Energy Star Windows and Doors 100% of spaceproduct in50% whichof temperatureproduct iscost controlledup thatto iscost broadbandup ready,to the$1,000 amount$500 ofInsulation creditImprovements shallThat beMeet basedRules onof the costEnergy, Minerals and Natural Resources Department 100% of theproduct 50% of product installed,cost whichup shallto includecost installationup costs,to and$2,000 if$1,000 theEnergy buildingStar isHeat affordablePump housing,Water perHeater $700 $350 Electric Vehicle Ready 100% of product installed:50% of product cost up to cost up to $3,000 $1,500;

Product(4) Amountfor ofthe Creditconstruction Affordableof Non-Affordablea Housingnew HousingHTRC/HB Energy15/a StarPage Air19 Sourcesustainable Heatresidential Pumpbuilding STBTCºthat $1,000»STBTCis STBTCº$500»STBTCbroadband hready STBTCºand $2,000»STBTCelectric STBTCº$1,000»STBTCvehicle gready o Energy Star Ground t hr g e Source Heat Pump $2,000 $1,000 i k h r i s Energy Star h , t, Windows and Doorsis 100%completed ofon productor 50%after ofApril product1, e2023, uthe gamount e b l cost up to cost up to e e h n d d i $1,000 $500 = = o h l ] b ,d i a º e Insulation Improvements That r i = r t e w d Meet Rules of thecredit mshall abe ncalculated: o d m :

b(a) ebased don sthe ºcertification olevel tthe nbuilding =has .219699.5AICachieved Marchin 15,the 2021rating (3:01pm)level s k m e - 19 - e a n e d r e l u [ A d HTRC/HB 15 Energy, Minerals and Naturalthe Resourcesamount Department 100% of productqualified 50%occupied ofsquare productfootage costin upthe tobuilding, costas upindicated toon $2,000the $1,000following Energychart: Star Heat Pump Water Heater $700 $350 Electric Vehicle Ready 100% of product 50% of product cost up to cost up to $3,000 $1,500;

(4)Rating forLevel theQualified constructionTax ofCredit aOccupied newper sustainableSquare residentialSquare buildingFootage thatFoot isLEED-H broadbandPlatinum readyUp andto electric2,000 vehicle$5.50 readyLEED-H STBTCºGold andUp isto completed2,000 on$3.80 orBuild afterGreen AprilEmerald 1,Up 2023»STBTCto ,2,000 the$5.50 amountBuild ofGreen creditGold shallUp beto calculated:2,000 $3.80 Manufactured Housing Up to 2,000 $2.00;

(a)and based(b) onwith theadditional certificationamounts levelbased theon building has achieved in the ratingadditional levelcriteria and the amount of qualified occupied square footagefootage, in the building, as indicated hin on the following chart:

g o Rating Level Qualified Tax Credit t hr g e Occupied per Square i k h r i s Square Footage Foot h , t, LEED-H Platinum Up to 2,000 $5.50 e u g e b l LEED-H Gold Up to 2,000 $3.80 e e h n d d i Build Green Emerald Up to 2,000 $5.50 = = o h l ] b ,d i a º e Build Green Gold Up to 2,000 $3.80 r i = r t e w d Manufactured Housing Up to 2,000 $2.00;

and m a n o d m :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 20 - e a n e d r e l u [ A d HTRC/HB 15 (b) with additional amounts based on the additional criteria and the amount of qualified occupied square footage, as indicated in the following chart:

and (5) for the installation of the following HTRC/HB 15/a Page 20 energy-conserving products to an existing residential building, the amount of credit shall be based on the cost of the product installed, which shall include installation costs, and if the building is affordable housing or the taxpayer is a low-income taxpayer, per product installed:

Product Amount of Credit h Affordable Non-Affordable g o Housing and Housing and t hr g e Low-Income Non-Low Income iEnergy kStar hAir rSource iHeat sPump $2,000 $1,000 Energy Star AirGround h , t, Source Heat Pump STBTCº$2,000 $1,000»STBTC$1,000 STBTCº$500»STBTCEnergy eStar uWindows gand eDoors b100% lof STBTCº50% $2,000»STBTCof STBTCº$1,000»STBTCproduct eproduct ecost hcost nup dto dup ito Energy$1,000 Star$500 GroundInsulation =Improvements =That oMeet hRules lof ]the bEnergy, ,dMinerals iand aNatural ºResources eDepartment Source100% Heatof Pumpproduct $2,00050% $1,000of rproduct icost =up rto tcost eup wto d$2,000 $1,000 Energy Star mHeat aPump nWater oHeater d$700 m$350 :HTRC/HB 15/a Page 21 Electric Vehicle Ready $1,000 $500.

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 21 - e a n e d r e l u [ A d HTRC/HB 15 Windows and Doors 100% of 50% of product product cost cost up to up to $1,000 $500 Insulation Improvements That Meet Rules of the Energy, Minerals and Natural Resources Department 100% of product 50% of product cost up to cost up to $2,000 $1,000 Energy Star Heat Pump Water Heater $700 $350 Electric Vehicle Ready $1,000 $500.

A person who is a building owner may apply for a certificate of eligibility for the 2021 sustainable building tax credit from the energy, minerals and natural resources department after the construction, installation or renovation h of the sustainable building or installation of energy-energy-conserving g o conserving products in an existing building is complete.

t hr g e Applications shall be considered in the order received.

If the i k h r i s energy, minerals and natural resources department determines h , t, that the building owner meets the requirements of this e u g e b l subsection and that the building with respect to which the e e h n d d i application is made meets the requirements of this section for = = o h l ] b ,d i a º e a 2021 sustainable building tax credit, the energy, minerals r i = r t e w d and natural resources department may issue a certificate of meligibility ato nthe obuilding downer, msubject :to the limitations in Subsection D of this section.

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 22 - e a n e d r e l u [ A d HTRC/HB 15 eligibility to the building owner, subject to the limitations in Subsection D of this section.

The energy, minerals and natural resources department may issue rules governing the procedure for administering the HTRC/HB 15/a Page 22 provisions of this subsection.

(1) the owner of the sustainable residential building at the time the certification level for the building h u » r is awarded;

or t h g e (2) the subsequent purchaser of a sustainable l i h r residential building with respect to which no tax credit has i s h , e h been previously claimed.

t u g e b l D.

Except as provided in Subsection E of this e e , gh n d d i section, the energy, minerals and natural resources department =may =issue oa hcertificate lof ]eligibility bonly ,dif ithe atotal ºamount rof may2021 issuesustainable abuilding certificatetax credits represented by certificates of eligibility onlyissued ifby the totalenergy, amountminerals eand rnatural =resources tdepartment epursuant wto dthis ofsection 2021and sustainablepursuant buildingto taxthe creditsCorporate representedIncome byand mFranchise aTax nAct oshall dnot mexceed :in any calendar year an aggregate amount of:

b r e t º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 23 - e a n e d r e l u [ A d HTRC/HB 15 certificates of eligibility issued by the energy, minerals and natural resources department pursuant to this section and pursuant to the Corporate Income and Franchise Tax Act shall not exceed in any calendar year an aggregate amount of:

(2) two million dollars ($2,000,000) with respect to the construction of new sustainable residential HTRC/HB 15/a Page 23 buildings that are not manufactured housing;

and (5) two million nine hundred thousand dollars ($2,900,000) with respect to the installation of energy-energy-conserving h u » r conserving products in existing commercial buildings pursuant t h g e to Paragraph (3) of Subsection B of this section and existing l i h r residential buildings pursuant to Paragraph (5) of Subsection B i s h , e h of this section.

t u g e b l E.

For any taxable year that the energy, minerals eand enatural ,resources ghdepartment ndetermines dthat dapplications ifor andsustainable naturalbuilding resourcestax departmentcredits determinesfor thatany applicationstype =of =sustainable obuilding hpursuant lto ]Subsection bD ,dof ithis asection ºare rless than the aggregate limit for that type of sustainable building taxfor creditsthat fortaxable anyyear, typethe ofenergy, eminerals rand =natural tresources edepartment wshall dallow sustainablethe buildingdifference pursuantbetween the aggregate limit and the applications to Subsectionbe Dadded to the aggregate limit of thisanother sectiontype mof asustainable nbuilding ofor dwhich mapplications :exceeded the aggregate limit for that taxable year.

bAny rexcess enot tused ºin o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 24 - e a n e d r e l u [ A d HTRC/HB 15 are less than the aggregate limit for that type of sustainable building for that taxable year,year the energy, minerals and natural resources department shall allownot thebe differencecarried betweenforward the aggregate limit and the applications to besubsequent addedHTRC/HB to15/a thePage aggregate24 limit of another type of sustainable building for which applications exceeded the aggregate limit for that taxable year.years.

Any excess not used in a taxable year shall not be carried forward to subsequent taxable years.

Installation of a solar thermal system or a photovoltaic system eligible for the solar market development tax credit pursuant to Section 7-2-18.14 NMSA 1978 shall not be used as a component of qualification for the rating system certification level used in determining eligibility for the 2021 sustainable building tax credit, unless a solar market development tax credit pursuant to Section 7-2-18.14 NMSA 1978 has not been claimed with respect to that system and the building owner and the taxpayer claiming the 2021 sustainable h u » r building tax credit certify that such a tax credit will not be t h g e claimed with respect to that system.

l i h r G.

To claim the 2021 sustainable building tax i s h , e h credit, the building owner shall provide to the taxation and t u g e b l revenue department a certificate of eligibility issued by the e e , gh n d d i energy, minerals and natural resources department pursuant to = = o h l ] b ,d i a º r the requirements of Subsection C of this section and any other e r = t e w d information the taxation and revenue department may require.

mH. a n o d m :

b r e t º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 25 - e a n e d r e l u [ A d HTRC/HB 15 H.

(1) less than one hundred thousand dollars ($100,000), a maximum of twenty-five thousand dollars HTRC/HB 15/a Page 25 ($25,000) shall be applied against the taxpayer's income tax liability for the taxable year for which the credit is approved and the next three subsequent taxable years as needed depending on the amount of credit;

If the sum of all 2021 sustainable building tax h u » r credits that can be applied to a taxable year for a taxpayer, t h g e calculated according to Paragraph (1) or (2) of Subsection H of l i h r this section, exceeds the taxpayer's income tax liability for i s h , e h that taxable year, the excess may be carried forward for a t u g e b l period of up to seven years;

provided that if the taxpayer is a e e , gh n d d i low-income taxpayer, the excess shall be refunded to the = = o h l ] b ,d i a º r taxpayer.

e r = t e w d J.

A taxpayer who otherwise qualifies and claims a msustainable building tax credit with respect to a nsustainable obuilding downed mby :a partnership or other business association of which the taxpayer is a member may claim a credit only in proportion to that taxpayer's interest in the partnership or association.

bThe rtotal ecredit tclaimed ºin othe taggregate nby =all .219699.5AICmembers Marchof 15,the 2021partnership (3:01pm)or sassociation kHTRC/HB m15/a ePage - 26 - e a n e d r e l u [ A d HTRC/HB 15 sustainable building tax credit with respect to athe sustainable building ownedshall bynot aexceed partnershipthe oramount other business association of which the taxpayercredit isthat acould memberhave maybeen claimclaimed by a creditsole onlyowner inof proportion to that taxpayer's interest in the partnershipproperty. or association.

The total credit claimed in the aggregate by all members of the partnership or association with respect to the sustainable building shall not exceed the amount of the credit that could have been claimed by a sole owner of the property.

STBTCº L.

If the requirements of this section have been complied with, the department shall issue to the building h owner a document granting a 2021 sustainable building tax g o credit.

The document shall be numbered for identification and t hr g e declare its date of issuance and the amount of the tax credit i k h r i s allowed pursuant to this section.

The document may be h , t, submitted by the building owner with that taxpayer's income tax e u g e b l return, if applicable, or may be sold, exchanged or otherwise e e h n d d i = = o h transferred to another taxpayer.

The parties to such a l ] b ,d i a º e transaction shall notify the department of the sale, exchange r i = r t e w d or transfer within ten days of the sale, exchange or mtransfer. a n o d m :

bM. e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 27 - e a n e d r e l u [ A d HTRC/HB 15 transfer.»STBTC STBTCº L.»STBTC STBTCºM.»STBTC The department and the energy, minerals and natural resources department shall compile an annual report on the 2021 sustainable building tax credit created pursuant to this section that shall include the number of taxpayers approved to receive the tax credit, the aggregate amount of tax credits approved and any other information necessary to evaluate the effectiveness of the tax credit.

The department and the energy, minerals and natural resources department shall compile an annual report on the 2021 sustainable building tax credit created pursuant to this section that shall include the number of taxpayers approved to receive the tax credit, the aggregate amount of HTRC/HB 15/a Page 27 tax credits approved and any other information necessary to evaluate the effectiveness of the tax credit.

STBTCºN. M.»STBTC STBTCºN.»STBTC For the purposes of this section:

(1)For "broadbandthe ready"purposes means a building with an internet connection capable of connectingthis tosection: a broadband h provider;

g(1) o"broadband (2)ready" "build green emerald" means thea emeraldbuilding twith hran ginternet econnection levelcapable certification standard adopted by build green New Mexico, i k h r i s which includes water conservation standards and uses forty h , t, percent less energy than is required by the STBTCº prescriptive e u g e b l path of the»STBTCconnecting mostto current residential energy conservation e e h n d d i = = o h code promulgated by the construction industries division of the l ] b ,d i a ºbroadband eprovider; regulation and licensing department;

r(2) i"build =green remerald" tmeans ethe wemerald dlevel (3)certification "buildstandard adopted by build green gold"New meansMexico, which includes water conservation standards and uses forty percent less energy than is required by the goldprescriptive levelpath mof athe nmost ocurrent dresidential menergy :conservation code promulgated by the construction industries division of the regulation and licensing department;

b(3) e"build dgreen sgold" ºmeans othe tgold nlevel = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 28 - e a n e d r e l u [ A d HTRC/HB 15 certification standard adopted by build green New Mexico, which includes water conservation standards and uses thirty percent less energy than is required by the STBTCº prescriptive path of the»STBTCthe most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department;

(4) "electric vehicle ready" means a property that for commercial buildings provides at least ten HTRC/HB 15/a Page 28 percent of parking spaces and for residential buildings at least one parking space with one forty-ampere, two-hundred-eight-volttwo-hundred- eight-volt or two-hundred-forty-volt dedicated branch circuit for servicing electric vehicles that terminates in a suitable termination point, such as a receptacle or junction box, and is located in reasonably close proximity to the proposed location of the parking spaces;

(5) "energy rating system index" means a numerical score given to a building where one hundred is h u » r equivalent to the 2006 international energy conservation code t h g e and zero is equivalent to a net-zero home.

As used in this l i h r paragraph, "net-zero home" means an energy-efficient home i s h , e h where, on a source energy basis, the actual annual delivered t u g e b l energy is less than or equal to the on-site renewable exported e e , gh n d d i energy;

= = o h l ] b ,d i a º r (6) "Energy Star" means products and devices e r = t e w d certified under the energy star program administered by United mStates aenvironmental nprotection oagency dand mUnited :States department of energy that meet the specified performance requirements at the installed locations;

b(7) r"fully eelectric tbuilding" ºmeans oa tbuilding nthat =uses .219699.5AICa Marchpermanent 15,supply 2021of (3:01pm)electricity sas kthe msource eof -energy 29for -all espace aheating, nwater eheating, dincluding rpools eand lspas, ucooking [appliances Aand dclothes drying appliances and, in the case of a new building, has no HTRC/HB 1515/a StatesPage environmental29 protectionnatural agencygas andor Unitedpropane Statesplumbing departmentinstalled ofin energythe STBTCºbuilding thator, meetin the specifiedcase performanceof requirementsan atexisting thebuilding, installedhas locations»STBTCno ;connected natural gas or propane plumbing;

(7) "fully electric building" means a building that uses a permanent supply of electricity as the source of energy for all space heating, water heating, including pools and spas, cooking appliances and clothes drying appliances and, in the case of a new building, has no natural gas or propane plumbing installed in the building or, in the case of an existing building, has no connected natural gas or propane plumbing;

(9) "LEED-CI" means the LEED rating system for h commercial interiors;

g o (10) "LEED-CS" means the LEED rating system t hr g e for the core and shell of buildings;

i k h r i s (11) "LEED-EB" means the LEED rating system h , t, for existing buildings;

e u g e b l (12) "LEED gold" means the rating in e e h n d d i compliance with, or exceeding, the second-highest rating = = o h l ] b ,d i a º e awarded by the LEED certification process;

r i = r t e w d (13) "LEED-H" means the LEED rating system for mhomes; a n o d m :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 30 - e a n e d r e l u [ A d HTRC/HB 15 homes;

(16) "low-income taxpayer" means a taxpayer with an annual household adjusted gross income equal to or HTRC/HB 15/a Page 30 less than two hundred percent of the federal poverty level guidelines published by the United States department of health and human services;

(b) a single-family dwelling with a heated area of at least thirty-six feet by twenty-four feet and h a total area of at least eight hundred sixty-four square feet;

g o (c) constructed in a factory to the t hr g e standards of the United States department of housing and urban i k h r i s development, the National Manufactured Housing Construction and h , t, Safety Standards Act of 1974 and the Housing and Urban e u g e b l Development Zone Code 2 or New Mexico construction codes up to e e h n d d i the date of the unit's construction;

and = = o h l ] b ,d i a º e (d) installed consistent with the r i = r t e w d Manufactured Housing Act and rules adopted pursuant to that act mrelating ato npermanent ofoundations; d m :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 31 - e a n e d r e l u [ A d HTRC/HB 15 relating to permanent foundations;

(b) the administrators of the build HTRC/HB 15/a Page 31 green New Mexico rating system for those homes obtaining build green New Mexico certification;

h (a) a commercial building that is g o certified as any LEED platinum or gold for commercial t hr g e buildings;

i k h r i s (b) a multifamily dwelling unit that is h , t, certified as LEED-H platinum or gold or build green emerald or egold uand guses eat bleast lthirty STBTCºpercent goldless andenergy hasthan achievedis anrequired by the prescriptive path of the most current applicable energy ratingconservation systemcode indexpromulgated by the construction industries division of ethe eregulation hand nlicensing ddepartment dfor ibuild green gold or LEED-H, or uses at least forty percent less energy than is required by the prescriptive path of the most current residential energy conservation code promulgated by the construction industries HTRC/HB 15/a Page 32 division of the regulation and licensing department for build green emerald or lower;LEED platinum;

or»STBTCor STBTCºgold(c) and uses at least thirty = = o h l ] b ,d i a ºbuilding ethat: percent less energy than is required by the prescriptive path r i = r t e w d of the most current applicable energy conservation code m a n o d m :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 32 - e a n e d r e l u [ A d HTRC/HB 15 promulgated by the construction industries division of the regulation and licensing department for build green gold or LEED-H, or uses at least forty percent less energy than is required by the prescriptive path of the most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department for build green emerald or LEED platinum;

or»STBTC (c) a building that:

and 3) has reduced energy consumption beginning January 1, 2012 by forty percent based on the national average for that building type as published by the United States department of energy as h substantiated by the United States environmental protection u » r agency target finder energy performance results form, dated no t h g e sooner than the schematic design phase of development;

l i h r (22) "sustainable residential building" means:

i s h , e h (a) a building used as a single-family t u g e b l residence that:

1) is certified as LEED-H platinum or gold or e e , gh n d d i build green emerald or gold;

2) STBTCºuses hasat achievedleast athirty homepercent =less =energy othan his lrequired ]by bthe ,dprescriptive ipath aof ºthe rmost current residential energy ratingconservation systemcode indexpromulgated by the construction industries division of fortythe orregulation lower»STBTCand STBTCºuseslicensing edepartment rfor =build tgreen egold wor dLEED-H, or uses at least thirtyforty percent less energy than is required by the mprescriptive apath nof othe dmost mcurrent :HTRC/HB 15/a Page 33 residential energy conservation code promulgated by the construction industries division of the regulation and licensing department for build green emerald or LEED platinum;

b3) rhas eindoor tplumbing ºfixtures oand twater-using nappliances =that, .219699.5AICon Marchaverage, 15,have 2021flow (3:01pm)rates sequal kto m e - 33 - e a n e d r e l u [ A d HTRC/HB 15 prescriptive path of the most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department for build green gold or LEED-H,lower or uses at least forty percent less energy than is required by the prescriptiveflow pathrates ofrequired thefor mostcertification current residential energy conservation code promulgated by theWaterSense; construction industries division of the regulation and licensing department for build green emerald or LEED platinum»STBTC ;

3) has indoor plumbing fixtures and water- using appliances that, on average, have flow rates equal to or lower than the flow rates required for certification by WaterSense;

and 5) if landscape area is available at the rear of the property, has at least one water line outside the building h below the frost line that may be connected to a drip irrigation u » r system;

or t h g e (b) manufactured housing that is Energy l i h r Star-qualified;

i s h , e h (23) "tribal" means of, belonging to or t u g e b l created by a federally recognized Indian nation, tribe or e e , gh n d d i pueblo;

= = o h l ] b ,d i a º r (24) "WaterSense" means a program created by e r = t e w d the federal environmental protection agency that certifies mwater-using aproducts nthat omeet dthe menvironmental :protection agency's criteria for efficiency and performance;

b(25) r"zero ecarbon tcertified" ºmeans oa tbuilding nthat =is .219699.5AICcertified Marchas 15,LEED 2021zero (3:01pm)carbon sby kachieving m e - 34 - e a ncarbon-dioxide-equivalent ebalance dof rzero efor l u [ A d HTRC/HB 15 water-using products that meet the environmentalbuilding; protection agency's criteria for efficiency and performance;

(25)HTRC/HB 15/a Page 34 (26) "zero carbonenergy certified" means a building that is certified as LEED zero carbonenergy by achieving a carbon-source dioxide-equivalentenergy use balance of zero for the building;

(26) "zero energy certified" means a building that is certified as LEED zero energy by achieving a source energy use balance of zero for the building;

Section 7-2A-28 NMSA 1978 (being Laws 2015, h Chapter 130, Section 2) is amended to read:

g o "7-2A-28.

[NEW] 2015 SUSTAINABLE BUILDING TAX CREDIT.-- t hr g e A.

The tax credit provided by this section may be i k h r i s referred to as the "[new"2015 ] 2015 sustainable building tax h , t, credit".

The [new] 2015 sustainable building tax credit shall e u g e b l be available for the construction in New Mexico of a e e h n d d i sustainable building, the renovation of an existing building in = = o h l ] b ,d i a º e New Mexico into a sustainable building or the permanent r i = r t e w d installation of manufactured housing, regardless of where the mhousing ais nmanufactured, othat dis ma :sustainable building;

bprovided ethat dthe sconstruction, ºrenovation oor tinstallation nproject = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 35 - e a n e d r e l u [ A d HTRC/HB 15 housing is manufactured,completed thatprior isto aApril sustainable1, building;2023.

The tax credit provided thatin this section may not be claimed with respect to the construction,same renovationsustainable orbuilding installationfor projectwhich STBTCºhasthe secured2015 asustainable building permitHTRC/HB prior15/a toPage March35 25,tax andcredit isprovided completedin priorthe toIncome AprilTax 1,Act 2022»STBTCor STBTCºisthe completed2021 priorsustainable building tax credit pursuant to Aprilthe 1,Income 2023»STBTCTax .Act or the Corporate Income and Franchise Tax Act has been claimed.

The tax credit provided in this section may not be claimed with respect to the same sustainable building for which the [new ] 2015 sustainable building tax credit provided in the Income Tax Act or the 2021 sustainable building tax credit pursuant to the Income Tax Act or the Corporate Income and Franchise Tax Act has been claimed.

The purpose of the [new ] 2015 sustainable building tax credit is to encourage the construction of sustainable buildings and the renovation of existing buildings into sustainable buildings.

A taxpayer that files a corporate income tax return is eligible to be granted a [new ] 2015 sustainable h building tax credit by the department if the taxpayer submits a g o document issued pursuant to Subsection K of this section with t hr g e the taxpayer's corporate income tax return.

i k h r i s D.

For taxable years ending on or before December h , t, 31, STBTCº2024, 2026»STBTC STBTCº2024»STBTC , the [new] 2015 e u g e b l sustainable building tax credit may be claimed with respect to e e h n d d i = = o h a sustainable commercial building.

The credit shall be l ] b ,d i a º e calculated based on the certification level the building has r i = r t e w d achieved in the LEED green building rating system and the mamount aof nqualified ooccupied dsquare mfootage :in the building, as indicated on the following chart:

bLEED eRating dLevel sQualified ºTax oCredit tper nOccupied =Square .219699.5AICFoot MarchSquare 15,Footage 2021LEED-NC (3:01pm)Silver sFirst k10,000 m$3.50 eNext -40,000 $1.75 HTRC/HB 15/a Page 36 -Over e50,000 aup nto e500,000 d$ r.70 eLEED-NC lGold uFirst [10,000 A$4.75 dNext 40,000 $2.00 Over 50,000 up to 500,000 $1.00 LEED-NC Platinum First 10,000 $6.25 Next 40,000 $3.25 Over 50,000 up to 500,000 $2.00 LEED-EB or CS Silver First 10,000 $2.50 Next 40,000 $1.25 Over 50,000 up to 500,000 $ .50 LEED-EB or CS Gold First 10,000 $3.35 Next 40,000 $1.40 Over 50,000 up to 500,000 $ .70 LEED-EB or CS Platinum First 10,000 $4.40 Next 40,000 $2.30 Over 50,000 up to 500,000 $1.40 LEED-CI Silver First 10,000 $1.40 Next 40,000 $ .70 HTRC/HB 1515/a amountPage of37 qualifiedOver occupied50,000 squareup footageto in500,000 the$ building,.30 asLEED-CI indicatedGold onFirst the10,000 following$1.90 chart:Next 40,000 $ .80 Over 50,000 up to 500,000 $ .40 LEED-CI Platinum First 10,000 $2.50 Next 40,000 $1.30 Over 50,000 up to 500,000 $ .80.

LEEDE. Rating Level Qualified Tax Credit per Occupied Square Foot Square Footage LEED-NC Silver First 10,000 $3.50 Next 40,000 $1.75 Over 50,000 up to 500,000 $ .70 LEED-NC Gold First 10,000 $4.75 Next 40,000 $2.00 Over 50,000 up to 500,000 $1.00 LEED-NC Platinum First 10,000 $6.25 Next 40,000 $3.25 Over 50,000 h up to 500,000 $2.00 g o LEED-EB or CS Silver First 10,000 $2.50 t hr g e Next 40,000 $1.25 i k h r i s Over 50,000 h , t, up to 500,000 $ .50 e u g e b l LEED-EB or CS Gold First 10,000 $3.35 e e h n d d i = = o h Next 40,000 $1.40 l ] b ,d i a º e Over 50,000 r i = r t e w d up to 500,000 $ .70 m a n o d m :

bFor etaxable dyears sending ºon o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 37 - e a n e d r e l u [ A d HTRC/HB 15 LEED-EB or CSbefore PlatinumDecember First31, 10,0002024, $4.40the Next2015 40,000sustainable $2.30building Overtax 50,000credit upmay tobe 500,000claimed $1.40with LEED-CIrespect Silver First 10,000 $1.40 Next 40,000 $ .70 Over 50,000 up to 500,000a $sustainable .30residential LEED-CIbuilding. Gold First 10,000 $1.90 Next 40,000 $ .80 Over 50,000 up to 500,000 $ .40 LEED-CI Platinum First 10,000 $2.50 Next 40,000 $1.30 Over 50,000 h up to 500,000 $ .80.

gThe ocredit E.shall be calculated based on the amount of qualified occupied square footage, as indicated on the following chart:

ForRating taxableSystem/Level yearsQualified endingTax onCredit orOccupied beforeper DecemberSquare tSquare hrFootage gFoot eLEED-H 31,Silver STBTCºor 2026»STBTCBuild STBTCº2024»STBTCUp ,to the2,000 [new]$3.00 2015Green iNM kSilver hLEED-H rGold ior sBuild sustainableUp buildingto tax2,000 credit$4.50 mayGreen beNM claimedGold withLEED-H respectPlatinum or Build Up to h2,000 ,$6.50 t,Green aNM sustainableEmerald residentialHTRC/HB building.15/a Page 38 Manufactured Housing Up to 2,000 $3.00.

The credit shall be e u g e b l calculated based on the amount of qualified occupied square e e h n d d i footage, as indicated on the following chart:

= = o h l ] b ,d i a º e Rating System/Level Qualified Tax Credit r i = r t e w d Occupied per Square m a n o d m :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 38 - e a n e d r e l u [ A d HTRC/HB 15 Square Footage Foot LEED-H Silver or Build Up to 2,000 $3.00 Green NM Silver LEED-H Gold or Build Up to 2,000 $4.50 Green NM Gold LEED-H Platinum or Build Up to 2,000 $6.50 Green NM Emerald Manufactured Housing Up to 2,000 $3.00.

A person that is a building owner may apply for a certificate of eligibility for the [new ] 2015 sustainable building tax credit from the energy, minerals and natural resources department after the construction, installation or renovation of the sustainable building is complete.

If the energy, minerals and natural resources department determines that the building owner meets the requirements of this h subsection and that the building with respect to which the tax g o credit application is made meets the requirements of this t hr g e section as a sustainable residential building or a sustainable i k h r i s commercial building, the energy, minerals and natural resources h , t, department may issue a certificate of eligibility to the e u g e b l building owner, subject to the limitations in Subsection G of e e h n d d i this section.

The certificate shall include the rating system = = o h l ] b ,d i a º e certification level awarded to the building, the amount of r i = r t e w d qualified occupied square footage in the building and a mcalculation aof nthe omaximum damount mof :2015 sustainable building tax credit for which the building owner would be eligible.

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 39 - e a n e d r e l u [ A d HTRC/HB 15 calculation of the maximum amount of [new ] 2015 sustainable building tax credit for which the building owner would be eligible.

If the certification level for the sustainable residential building is awarded on or after January 1, 2017 but prior to April 1, STBTCº2022»STBTCHTRC/HB STBTCº2023»STBTC15/a ,Page 39 2023, the energy, minerals and natural resources department may issue a certificate of eligibility to a building owner who is:

h G.

Except as provided in Subsection H of this g o section, the energy, minerals and natural resources department t hr g e may issue a certificate of eligibility only if the total amount i k h r i s of [new ] 2015 sustainable building tax credits represented by h , t, certificates of eligibility issued by the energy, minerals and e u g e b l natural resources department pursuant to this section and e e h n d d i pursuant to the Income Tax Act shall not exceed in any calendar = = o h l ] b ,d i a º e year an aggregate amount of:

r i = r t e w d (1) one million two hundred fifty thousand mdollars a($1,250,000) nwith orespect dto msustainable :commercial buildings;

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 40 - e a n e d r e l u [ A d HTRC/HB 15 dollars ($1,250,000) with respect to sustainable commercial buildings;

and (3) three hundred seventy-five thousand dollars ($375,000) with respect to sustainable residential HTRC/HB 15/a Page 40 buildings that are manufactured housing.

For any taxable year that the energy, minerals and natural resources department determines that applications for sustainable building tax credits for any type of sustainable building pursuant to Paragraph (1), (2) or (3) of Subsection G of this section are less than the aggregate limit for that type of sustainable building for that taxable year, the energy, minerals and natural resources department shall allow the difference between the aggregate limit and the applications to be added to the aggregate limit of another type h u » r of sustainable building for which applications exceeded the t h g e aggregate limit for that taxable year.

Any excess not used in l i h r a taxable year shall not be carried forward to subsequent i s h , e h taxable years.

t u g e b l I.

Installation of a solar thermal system or a ephotovoltaic esystem ,eligible ghfor nthe dsolar dmarket idevelopment photovoltaictax systemcredit eligiblepursuant to Section 7-2-18.14 NMSA 1978 may not be used as a component of qualification for the solarrating marketsystem developmentcertification =level =used oin hdetermining leligibility ]for bthe ,dsustainable ibuilding tax credit, unless a ºsolar rmarket development tax credit pursuant to Section 7-2-18.14 NMSA 1978 mayhas not bebeen eclaimed rwith =respect tto ethat wsystem dand usedthe asbuilding aowner componentand ofthe qualificationtaxpayer forclaiming the rating2015 systemsustainable mbuilding tax credit certify that such a ntax ocredit dwill mnot :be claimed with respect to that system.

bHTRC/HB r15/a ePage t º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 41 -J. e a n e d r e l u [ A d HTRC/HB 15 certification level used in determining eligibility for the [new] 2015 sustainable building tax credit, unless a solar market development tax credit pursuant to Section 7-2-18.14 NMSA 1978 has not been claimed with respect to that system and the building owner and the taxpayer claiming the [new ] 2015 sustainable building tax credit certify that such a tax credit will not be claimed with respect to that system.

J.To be eligible for the 2015 sustainable building tax credit, the building owner shall provide to the taxation and revenue department a certificate of eligibility issued by the energy, minerals and natural resources department pursuant to the requirements of Subsection F of this section and any other information the taxation and revenue department may require to determine the amount of the tax credit for which the building owner is eligible.

To be eligible for the [new ] 2015 sustainable building tax credit, the building owner shall provide to the taxation and revenue department a certificate of eligibility issued by the energy, minerals and natural resources department pursuant to the requirements of Subsection F of this section and any other information the taxation and revenue department may require to determine the amount of the tax credit for which the building owner is eligible.

If the requirements of this section have been h complied with, the department shall issue to the building owner g o a document granting a [new ] 2015 sustainable building tax t hr g e credit.

The document shall be numbered for identification and i k h r i s declare its date of issuance and the amount of the tax credit h , t, allowed pursuant to this section.

The document may be e u g e b l submitted by the building owner with that taxpayer's income tax e e h n d d i return, if applicable, or may be sold, exchanged or otherwise = = o h l ] b ,d i a º e transferred to another taxpayer.

The parties to such a r i = r t e w d transaction shall notify the department of the sale, exchange mor atransfer nwithin oten ddays mof :the sale, exchange or transfer.

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 42 - e a n e d r e l u [ A d HTRC/HB 15 or transfer within ten days of the sale, exchange or transfer.

If the approved amount of a [new ] 2015 sustainable building tax credit for a taxpayer in a taxable year represented by a document issued pursuant to Subsection K of this section is:

(1) less than one hundred thousand dollars HTRC/HB 15/a Page 42 ($100,000), a maximum of twenty-five thousand dollars ($25,000) shall be applied against the taxpayer's corporate income tax liability for the taxable year for which the credit is approved and the next three subsequent taxable years as needed depending on the amount of credit;

or (2) one hundred thousand dollars ($100,000) or more, increments of twenty-five percent of the total credit amount in each of the four taxable years, including the taxable year for which the credit is approved and the three subsequent taxable years, shall be applied against the taxpayer's h corporate income tax liability.

g o M.

If the sum of all [new ] 2015 sustainable t hr g e building tax credits that can be applied to a taxable year for i k h r i s a taxpayer, calculated according to Paragraph (1) or (2) of h , t, Subsection L of this section, exceeds the taxpayer's corporate e u g e b l income tax liability for that taxable year, the excess may be e e h n d d i carried forward for a period of up to seven years.

= = o h l ] b ,d i a º e N.

A taxpayer that otherwise qualifies and claims a r2015 isustainable =building rtax tcredit ewith wrespect dto [newa ] 2015 sustainable building taxowned creditby witha respectpartnership toor other business association of which the taxpayer is a mmember may claim a ncredit oonly din mproportion :to that taxpayer's interest in the partnership or association.

bThe etotal dcredit sclaimed ºin othe taggregate nby =all .219699.5AICmembers Marchof 15,the 2021partnership (3:01pm)or sassociation kwith mrespect eto -the 43sustainable -building eshall anot nexceed ethe dHTRC/HB r15/a ePage l43 uamount [of Athe dcredit HTRC/HBthat 15could sustainablehave buildingbeen ownedclaimed by a partnershipsole orowner other business association of which the taxpayerproperty. is a member may claim a credit only in proportion to that taxpayer's interest in the partnership or association.

The total credit claimed in the aggregate by all members of the partnership or association with respect to the sustainable building shall not exceed the amount of the credit that could have been claimed by a sole owner of the property.

The department shall compile an annual report on the [new ] 2015 sustainable building tax credit created pursuant to this section that shall include the number of taxpayers approved by the department to receive the tax credit, the aggregate amount of tax credits approved and any other information necessary to evaluate the effectiveness of the tax credit.

Beginning in 2019 and every three years thereafter that the credit is in effect, the department shall compile and present the annual reports to the revenue stabilization and tax h u » r policy committee and the legislative finance committee with an t h g e analysis of the effectiveness and cost of the tax credit and l i h r whether the tax credit is performing the purpose for which it i s h , e h was created.

t u g e b l P.

e e , gh n d d i (1) "build green New Mexico rating system" = = o h l ] b ,d i a º r means the certification standards adopted by build green New e r = t e w d Mexico in November 2014, which include water conservation mstandards; a n o d m :

b r e t º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 44 - e a n e d r e l u [ A d HTRC/HB 15 standards;

(4) "LEED-EB" means the LEED rating system HTRC/HB 15/a Page 44 for existing buildings;

h (8) "LEED-NC" means the LEED rating system for g o new buildings and major renovations;

t hr g e (9) "LEED platinum" means the rating in i k h r i s compliance with, or exceeding, the highest rating awarded by h , t, the LEED certification process;

e u g e b l (10) "LEED silver" means the rating in e e h n d d i compliance with, or exceeding, the third-highest rating awarded = = o h l ] b ,d i a º e by the LEED certification process;

r i = r t e w d (11) "manufactured housing" means a mmultisectioned ahome nthat ois: d m :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 45 - e a n e d r e l u [ A d HTRC/HB 15 multisectioned home that is:

(b) a single-family dwelling with a heated area of at least thirty-six feet by twenty-four feet and a total area of at least eight hundred sixty-four square HTRC/HB 15/a Page 45 feet;

h (a) the United States green building g o council for those buildings obtaining LEED certification;

t hr g e (b) the administrators of the build i k h r i s green New Mexico rating system for those homes obtaining build h , t, green New Mexico certification;

and e u g e b l (c) the United States environmental e e h n d d i protection agency for ENERGY STAR-certified manufactured homes;

= = o h l ] b ,d i a º e (13) "person" does not include state, local r i = r t e w d government, public school district or tribal agencies;

m(14) "sustainable building" means either a nsustainable ocommercial dbuilding mor :a sustainable residential building;

bHTRC/HB e15/a dPage s46 º(15) o"sustainable tcommercial nbuilding" =means .219699.5AICa Marchmultifamily 15,dwelling 2021unit, (3:01pm)as sregistered kand mcertified eunder -the 46LEED-H -or ebuild agreen nNew eMexico drating rsystem, ethat lis ucertified [by Athe dUnited HTRC/HBStates 15green (14)building "sustainablecouncil building"as meansLEED-H eithersilver aor sustainablehigher commercialor buildingby build green New Mexico as silver or higher and has achieved a sustainablehome energy rating system index of sixty or lower as developed by the residential building;energy services network or a building that has been registered and certified under the LEED-NC, LEED-EB, LEED-CS or LEED-CI rating system and that:

(15) "sustainable commercial building" means a multifamily dwelling unit, as registered and certified under the LEED-H or build green New Mexico rating system, that is certified by the United States green building council as LEED-H silver or higher or by build green New Mexico as silver or higher and has achieved a home energy rating system index of sixty or lower as developed by the residential energy services network or a building that has been registered and certified under the LEED-NC, LEED-EB, LEED-CS or LEED-CI rating system and that:

(b) achieves any prerequisite for and at least one point related to commissioning under LEED "energy and h u » r atmosphere", if included in the applicable rating system;

and t h g e (c) has reduced energy consumption l i h r beginning January 1, 2012, by sixty percent based on the i s h , e h national average for that building type as published by the t u g e b l United States department of energy as substantiated by the e e , gh n d d i United States environmental protection agency target finder = = o h l ] b ,d i a º r energy performance results form, dated no sooner than the e r = t e w d schematic design phase of development;

m(16) a"sustainable nresidential obuilding" dmeans: m :

bHTRC/HB r15/a ePage t47 º(a) oa tbuilding nused =as .219699.5AIC March 15, 2021 (3:01pm) s k m e - 47 - e a nsingle-family eresidence das rregistered eand lcertified uunder [the Abuild dgreen HTRC/HBNew 15Mexico (16)or "sustainableLEED-H residentialrating building"systems means:that:

(a) a building used as a single-family residence as registered and certified under the build green New Mexico or LEED-H rating systems that:

or h u » r (b) manufactured housing that is t h g e ENERGY STAR-qualified by the United States environmental l i h r protection agency;

i s h , e h (17) "tribal" means of, belonging to or t u g e b l created by a federally recognized Indian nation, tribe or e e , gh n d d i pueblo;

and = = o h l ] b ,d i a º r (18) "WaterSense" means a program created by ethe rfederal =environmental tprotection eagency wthat dcertifies theHTRC/HB federal15/a environmentalPage protection48 agencywater-using products that certifiesmeet mthe aenvironmental nprotection oagency's dcriteria mfor :efficiency and performance." SECTION 4.

b r e t º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 48 - e a n e d r e l u [ A d HTRC/HB 15 water-using products that meet the environmental protection agency's criteria for efficiency and performance." SECTION 4.

"[NEW"2021 MATERIAL] 2021 SUSTAINABLE BUILDING TAX CREDIT.-- A.

For taxable years prior to January 1, STBTCº2030, 2027»STBTC STBTCº 2030»STBTC , a taxpayer that is a building owner and files a corporate income tax return is eligible to be granted a 2021 sustainable building tax credit by the department if the requirements of this section are met.

The 2021 sustainable building tax credit shall be available for the construction in New Mexico of a sustainable building, the renovation of an existing building in New Mexico, the permanent installation of manufactured housing, regardless of where the housing is h manufactured, that is a sustainable building or the g o installation of energy-conserving products to existing t hr g e buildings in New Mexico, as provided in this section.

The tax i k h r i s credit provided in this section may not be claimed with respect h , t, to the same sustainable building for which the 2021 sustainable e u g e b l building tax credit provided in the Income Tax Act or the 2015 e e h n d d i sustainable building tax credit pursuant to the Income Tax Act = = o h l ] b ,d i a º e or the Corporate Income and Franchise Tax Act has been claimed.

r i = r t e w d B.

The amount of a 2021 sustainable building tax mHTRC/HB a15/a nPage o49 dcredit mshall :be determined as follows:

b(1) efor dthe sconstruction ºof oa tnew nsustainable =commercial .219699.5AICbuilding Marchthat 15,is 2021broadband (3:01pm)ready sand kelectric mvehicle eready -and 49is -completed eon aor nafter eApril d1, r2023, ethe lamount uof [ A d HTRC/HB 15 credit shall be determinedcalculated: as follows:

(1) for the construction of a new sustainable commercial building that is broadband ready and electric vehicle ready STBTCº and is completed on or after April 1, 2023»STBTC , the amount of credit shall be calculated:

Rating Level Qualified Tax Credit Occupied per Square Square Footage Foot LEED-NC Platinum First 10,000 $5.25 Next 40,000 $2.25 Over 50,000 up to 200,000 $1.00 h LEED-EB or CS Platinum First 10,000 $3.40 g o Next 40,000 $1.30 t hr g e Over 50,000 i k h r i s up to 200,000 $0.35 h , t, LEED-CI Platinum First 10,000 $1.50 eNext u40,000 g$0.40 eOver b50,000 lup Nextto 40,000200,000 $0.40$0.30 eLEED-NC eGold hFirst n10,000 d$3.00 dHTRC/HB i15/a OverPage 50,00050 =Next =40,000 o$1.00 hOver l50,000 ]up bto ,d200,000 i$0.25 aLEED-EB ºor e-CS upGold toFirst 200,00010,000 $0.30$2.00 rNext i40,000 =$1.00 rOver t50,000 eup wto d200,000 LEED-NC$0.25 LEED-CI Gold First 10,000 $3.00$0.90 mNext a40,000 n$0.40 oOver d50,000 mup :to 200,000 $0.10;

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 50 - e a n e d r e l u [ A d HTRC/HB 15 Next 40,000 $1.00 Over 50,000 up to 200,000 $0.25 LEED-EB or -CS Gold First 10,000 $2.00 Next 40,000 $1.00 Over 50,000 up to 200,000 $0.25 LEED-CI Gold First 10,000 $0.90 Next 40,000 $0.40 Over 50,000 up to 200,000 $0.10;

Additional Criteria Qualified Tax Credit Occupied per Square h Square Footage Foot g o Fully Electric Building First 50,000 $1.00 t hr g e Over 50,000 i k h r i s up to 200,000 $0.50 h , t, Zero Carbon, Energy, e u g e b l Waste or Water Certified First 50,000 $0.25 e e h n d d i Over 50,000 = = o h l ] b ,d i a º e up to 200,000 $0.10;

r(2) ifor =the rrenovation tof ea wcommercial dHTRC/HB (2)15/a forPage 51 building that was built at least ten years prior to the renovationdate of athe commercialrenovation, mhas twenty thousand square feet or more of space in which temperature is controlled and is broadband ready and electric vehicle ready, the amount of credit shall be calculated by multiplying two dollars twenty-five cents ($2.25) by the amount of qualified occupied square footage in the building, up to a nmaximum oof done mhundred :fifty thousand dollars ($150,000) per renovation;

bprovided e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 51 - e a n e d r e l u [ A d HTRC/HB 15 building that was built at least ten years prior to the daterenovation ofreduces thetotal renovation,energy has twenty thousand square feet or more of space in which temperature is controlled and ispower broadbandcosts readyby andfifty electricpercent vehiclewhen ready,compared to the amountmost ofcurrent creditenergy shallstandard befor calculatedbuildings byexcept multiplyinglow-rise tworesidential dollarsbuildings, twenty-fiveas centsdeveloped ($2.25) by the amountAmerican ofsociety qualified occupied square footage in the building, up to a maximum of oneheating, hundredrefrigerating fiftyand thousandair- dollarsconditioning ($150,000)engineers; per renovation;

provided(3) thatfor the renovationinstallation reducesof totalthe energyfollowing andenergy-conserving powerproducts coststo byan fiftyexisting percentcommercial whenbuilding comparedwith toless thethan mosttwenty currentthousand energysquare standardfeet forof buildingsspace exceptin low-risewhich residentialtemperature buildings,is ascontrolled developedthat byis broadband ready, the Americanamount societyof credit shall be based on the cost of heating,the refrigeratingproduct installed, which shall include installation costs, and air-conditioningif engineers;the building is affordable housing, per product installed:

(3)Product forAmount the installation of theCredit followingAffordable energy-conservingNon-Affordable productsHousing toHousing anEnergy existingStar commercialAir buildingSource withHeat lessPump than$2,000 twenty$1,000 thousandHTRC/HB square15/a feetPage of52 spaceEnergy inStar whichGround temperatureSource isHeat controlledPump that$2,000 is$1,000 broadbandEnergy ready,Star theWindows amountand hDoors 100% of creditproduct shall50% beof basedproduct oncost theup to cost up to $1,000 $500 Insulation Improvements That Meet Rules of the Energy, Minerals and Natural Resources Department 100% of product installed,50% gof oproduct whichcost shallup includeto installationcost costs,up andto if$2,000 the$1,000 buildingEnergy isStar tHeat hrPump gWater eHeater affordable$700 housing,$350 perElectric Vehicle Ready 100% of product installed:50% of product cost up to cost up to $3,000 $1,500;

i(4) kfor hthe rconstruction i s Product Amount of Credita hnew ,sustainable t,residential Affordablebuilding Non-Affordablethat eis ubroadband gready eand belectric lvehicle Housingready Housingand eis ecompleted hon nor dafter dApril i1, Energy2023, Starthe Airamount =of =credit oshall hbe lcalculated: ] b ,d i a º e Source Heat Pump STBTCº $1,000»STBTC STBTCº$500»STBTC r i = r t e w d STBTCº $2,000»STBTC STBTCº$1,000»STBTC m a n o d m :

b(a) ebased don sthe ºcertification olevel tthe nbuilding =has .219699.5AICachieved Marchin 15,the 2021rating (3:01pm)level s k m e - 52 - e a n e d r e l u [ A d HTRC/HB 15 Energy Star Ground Source Heat Pump $2,000 $1,000 Energy Star Windows and Doorsthe 100%amount of productqualified 50%occupied ofsquare productfootage costin upthe tobuilding, costas upindicated toon $1,000 $500 Insulation Improvements That Meet Rules of the Energy,following Mineralschart: and Natural Resources Department 100% of product 50% of product cost up to cost up to $2,000 $1,000 Energy Star Heat Pump Water Heater $700 $350 Electric Vehicle Ready 100% of product 50% of product cost up to cost up to h $3,000 $1,500;

gHTRC/HB o15/a (4)Page for53 theRating constructionLevel ofQualified aTax newCredit sustainableOccupied tper hrSquare gSquare eFootage residentialFoot buildingLEED-H thatPlatinum isUp broadbandto ready2,000 and$5.50 electricLEED-H iGold kUp hto r2,000 i$3.80 sBuild vehicleGreen readyEmerald STBTCºUp andto is2,000 completed$5.50 onBuild orGreen afterGold AprilUp 1,to h2,000 ,$3.80 t,Manufactured 2023»STBTCHousing ,Up theto amount2,000 of$2.00; credit shall be calculated:

e u g e b l (a) based on the certification level the e e h n d d i building has achieved in the rating level and the amount of = = o h l ] b ,d i a º e qualified occupied square footage in the building, as indicated r i = r t e w d on the following chart:

m a n o d m :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 53 - e a n e d r e l u [ A d HTRC/HB 15 Rating Level Qualified Tax Credit Occupied per Square Square Footage Foot LEED-H Platinum Up to 2,000 $5.50 LEED-H Gold Up to 2,000 $3.80 Build Green Emerald Up to 2,000 $5.50 Build Green Gold Up to 2,000 $3.80 Manufactured Housing Up to 2,000 $2.00;

Additional Criteria Qualified Tax Credit Occupied per Square Square Footage Foot Fully Electric Building Up to 2,000 $1.00 Zero Carbon, Energy, h Waste or Water Certified Up to 2,000 $0.25;

and g o (5) for the installation of the following t hr g e energy-conserving products to an existing residential building, i k h r i s the amount of credit shall be based on the cost of the product h , t, installed, which shall include installation costs, and if the e u g e b l building is affordable housing or the taxpayer is a low-income e e h n d d i taxpayer, per product installed:

=Product =Amount oof hCredit lAffordable ]Non-Affordable bHTRC/HB ,d15/a iPage a54 ºHousing eand ProductHousing Amountand Low-Income Non-Low Income Energy Star Air Source Heat Pump $2,000 $1,000 Energy Star Ground Source Heat Pump $2,000 $1,000 Energy Star Windows and Doors 100% of Creditproduct r50% iof =product rcost tup eto wcost dup Affordableto Non-Affordable$1,000 m$500 aInsulation nImprovements oThat dMeet mRules :of the Energy, Minerals and Natural Resources Department 100% of product 50% of product cost up to cost up to $2,000 $1,000 Energy Star Heat Pump Water Heater $700 $350 Electric Vehicle Ready $1,000 $500.

bC. e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 54 - e a n e d r e l u [ A d HTRC/HB 15 Housing and Housing and Low-Income Non-Low Income Energy Star Air Source Heat Pump STBTCº $1,000»STBTC STBTCº$500»STBTC STBTCº $2,000»STBT STBTCº$1,000»STBTC Energy Star Ground Source Heat Pump $2,000 $1,000 Energy Star Windows and Doors 100% of product 50% of product cost up to cost up to $1,000 $500 Insulation Improvements That Meet Rules of the Energy, Minerals and Natural Resources Department 100% of product 50% of product cost up to cost up to h $2,000 $1,000 g o Energy Star Heat Pump Water t hr g e Heater $700 $350 i k h r i s Electric Vehicle Ready $1,000 $500.

hA ,person t,that C.is a building owner may apply for a certificate of eligibility for the 2021 sustainable building tax credit from the energy, minerals and natural resources department after the construction, installation or renovation of the sustainable building or installation of energy-conserving products in an existing building is HTRC/HB 15/a Page 55 complete.

A person that is a building owner may apply for e u g e b l a certificate of eligibility for the 2021 sustainable building e e h n d d i tax credit from the energy, minerals and natural resources = = o h l ] b ,d i a º e department after the construction, installation or renovation r i = r t e w d of the sustainable building or installation of energy- m a n o d m :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 55 - e a n e d r e l u [ A d HTRC/HB 15 conserving products in an existing building is complete.

The energy, minerals and natural resources department may issue h u » r rules governing the procedure for administering the provisions t h g e of this subsection.

If the certification level for the l i h r sustainable residential building is awarded on or after January i s h , e h 1, 2021, the energy, minerals and natural resources department t u g e b l may issue a certificate of eligibility to a building owner who e e , gh n d d i is:

= = o h l ] b ,d i a º r (1) the owner of the sustainable residential e r = t e w d building at the time the certification level for the building mHTRC/HB a15/a nPage o56 dis mawarded; :

b r e t º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 56 - e a n e d r e l u [ A d HTRC/HB 15 is awarded;

(2) two million dollars ($2,000,000) with h respect to the construction of new sustainable residential g o buildings that are not manufactured housing;

t hr g e (3) two hundred fifty thousand dollars i k h r i s ($250,000) with respect to the construction of new sustainable h , t, residential buildings that are manufactured housing;

e u g e b l (4) one million dollars ($1,000,000) with e e h n d d i respect to the renovation of large commercial buildings;

and =(5) =two omillion hnine lhundred ]thousand bHTRC/HB ,d15/a iPage a57 ºdollars e($2,900,000) (5)with tworespect millionto ninethe hundredinstallation thousandof dollarsenergy-conserving rproducts iin =existing rcommercial tbuildings epursuant wto dParagraph ($2,900,000)(3) withof respectSubsection toB theof installationthis ofsection energy-and mexisting aresidential nbuildings opursuant dto mParagraph :(5) of Subsection B of this section.

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 57 - e a n e d r e l u [ A d HTRC/HB 15 conserving products in existing commercial buildings pursuant to Paragraph (3) of Subsection B of this section and existing residential buildings pursuant to Paragraph (5) of Subsection B of this section.

Installation of a solar thermal system or a h u » r photovoltaic system eligible for the solar market development t h g e tax credit pursuant to Section 7-2-18.14 NMSA 1978 shall not be l i h r used as a component of qualification for the rating system i s h , e h certification level used in determining eligibility for the t u g e b l 2021 sustainable building tax credit, unless a solar market e e , gh n d d i development tax credit pursuant to Section 7-2-18.14 NMSA 1978HTRC/HB =15/a =Page o58 h1978 l ] b ,d i a º r has not been claimed with respect to that system and the e r = t e w d building owner and the taxpayer claiming the 2021 sustainable mbuilding tax credit certify that such a ntax ocredit dwill mnot :be claimed with respect to that system.

b r e t º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 58 - e a n e d r e l u [ A d HTRC/HB 15 building tax credit certify that such a tax credit will not be claimed with respect to that system.

(1) less than one hundred thousand dollars ($100,000), a maximum of twenty-five thousand dollars ($25,000) shall be applied against the taxpayer's corporate income tax liability for the taxable year for which the credit is approved and the next three subsequent taxable years as needed depending h u » r on the amount of credit;

or t h g e (2) one hundred thousand dollars ($100,000) or l i h r more, increments of twenty-five percent of the total credit i s h , e h amount in each of the four taxable years, including the taxable t u g e b l year for which the credit is approved and the threeHTRC/HB subsequent15/a ePage e59 ,three ghsubsequent n d d i taxable years, shall be applied against the taxpayer's = = o h l ] b ,d i a º r corporate income tax liability.

e r = t e w d I.

If the sum of all 2021 sustainable building tax mcredits that can be applied to a ntaxable oyear dfor ma :taxpayer, calculated according to Paragraph (1) or (2) of Subsection H of this section, exceeds the taxpayer's corporate income tax liability for that taxable year, the excess may be carried forward for a period of up to seven years.

b r e t º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 59 - e a n e d r e l u [ A d HTRC/HB 15 credits that can be applied to a taxable year for a taxpayer, calculated according to Paragraph (1) or (2) of Subsection H of this section, exceeds the taxpayer's corporate income tax liability for that taxable year, the excess may be carried forward for a period of up to seven years.

A taxpayer that otherwise qualifies and claims a 2021 sustainable building tax credit with respect to a sustainable building owned by a partnership or other business association of which the taxpayer is a member may claim a credit only in proportion to that taxpayer's interest in the partnership or association.

STBTCº K.

If the requirements of this section have h been complied with, the department shall issue to the building g o owner a document granting a 2021 sustainable building tax t hr g e credit.

The document shall be numbered for identification and i k h r i s declare its date of issuance and the amount of the tax credit h , t, allowed pursuant to this section.

The document may be e u g e b l submitted by the building owner with that taxpayer's income taxHTRC/HB e15/a ePage h60 ntax d d i = = o h return, if applicable, or may be sold, exchanged or otherwise l ] b ,d i a º e transferred to another taxpayer.

The parties to such a r i = r t e w d transaction shall notify the department of the sale, exchange mor atransfer nwithin oten ddays mof :the sale, exchange or transfer.

bL. e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 60 - e a n e d r e l u [ A d HTRC/HB 15 or transfer within ten days of the sale, exchange or transfer.»STBTC STBTCº K.»STBTC STBTCºL.»STBTC The department and the energy, minerals and natural resources department shall compile an annual report on the 2021 sustainable building tax credit created pursuant to this section that shall include the number of taxpayers approved to receive the tax credit, the aggregate amount of tax credits approved and any other information necessary to evaluate the effectiveness of the tax credit.

The department and the energy, minerals and natural resources department shall compile an annual report on the 2021 sustainable building tax credit created pursuant to this section that shall include the number of taxpayers approved to receive the tax credit, the aggregate amount of tax credits approved and any other information necessary to evaluate the effectiveness of the tax credit.

STBTCºM. L.»STBTC STBTCºM.»STBTC For the purposes of this section:

(1)For "broadbandthe ready"purposes means a building with an h internet connection capable of connectingthis tosection: a broadband g o provider;

t(1) hr"broadband gready" e (2) "build green emerald" means thea emeraldbuilding iwith kan hinternet rconnection icapable s level certification standard adopted by build green New Mexico, h , t, which includes water conservation standards and uses forty e u g e b l percent less energy than is required by the STBTCº prescriptive e e h n d d i = = o h path of the»STBTCconnecting mostto current residential energy conservation l ] b ,d i a ºbroadband eprovider; code promulgated by the construction industries division of the r i = r t e w d regulation and licensing department;

m(2) a"build ngreen oemerald" dmeans mthe :emerald level certification standard adopted by build green New Mexico, which includes water conservation standards and uses forty percent less energy than is required by the prescriptive path of the most current residential energy conservation code promulgated by the construction industries HTRC/HB 15/a Page 61 division of the regulation and licensing department;

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 61 - e a n e d r e l u [ A d HTRC/HB 15 (3) "build green gold" means the gold level certification standard adopted by build green New Mexico, which includes water conservation standards and uses thirty percent less energy than is required by the STBTCº prescriptive path of the»STBTCthe most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department;

(5) "energy rating system index" means a h u » r numerical score given to a building where one hundred is t h g e equivalent to the 2006 international energy conservation code l i h r and zero is equivalent to a net-zero home.

As used in this i s h , e h paragraph, "net-zero home" means an energy-efficient home t u g e b l where, on a source energy basis, the actual annual delivered e e , gh n d d i energy is less than or equal to the on-site renewable exportedHTRC/HB =15/a =Page o62 hexported l ] b ,d i a º r energy;

e(6) r"Energy =Star" tmeans eproducts wand ddevices (6)certified "Energyunder Star"the meansenergy productsstar program administered by United States environmental protection agency and devicesUnited mStates adepartment nof oenergy dthat mmeet :the specified performance requirements at the installed locations;

b r e t º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 62 - e a n e d r e l u [ A d HTRC/HB 15 certified under the energy star program administered by United States environmental protection agency and United States department of energy STBTCº that meet the specified performance requirements at the installed locations»STBTC ;

h (9) "LEED-CI" means the LEED rating system for g o commercial interiors;

t hr g e (10) "LEED-CS" means the LEED rating system i k h r i s for the core and shell of buildings;

h , t, (11) "LEED-EB" means the LEED rating system e u g e b l for existing buildings;

e e h n d d i (12) "LEED gold" means the rating in =HTRC/HB =15/a oPage h63 l ] b ,d i a º e compliance with, or exceeding, the second-highest rating r i = r t e w d awarded by the LEED certification process;

m(13) a"LEED-H" nmeans othe dLEED mrating :system for homes;

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 63 - e a n e d r e l u [ A d HTRC/HB 15 (13) "LEED-H" means the LEED rating system for homes;

(b) a single-family dwelling with a h heated area of at least thirty-six feet by twenty-four feet and g o a total area of at least eight hundred sixty-four square feet;

t hr g e (c) constructed in a factory to the i k h r i s standards of the United States department of housing and urban h , t, development, the National Manufactured Housing ConstructionHTRC/HB and15/a ePage u64 gConstruction eand b l Safety Standards Act of 1974 and the Housing and Urban e e h n d d i Development Zone Code 2 or New Mexico construction codes up to = = o h l ] b ,d i a º e the date of the unit's construction;

and r(d) iinstalled =consistent rwith tthe eManufactured wHousing dAct (d)and installedrules consistentadopted withpursuant theto mthat aact nrelating oto dpermanent mfoundations; :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 64 - e a n e d r e l u [ A d HTRC/HB 15 Manufactured Housing Act and rules adopted pursuant to that act relating to permanent foundations;

h (21) "sustainable commercial building" means:

g o (a) a commercial building that is t hr g e certified as any LEED platinum or gold for commercial iHTRC/HB k15/a hPage r65 i s buildings;

h , t, (b) a multifamily dwelling unit that is e u g e b l certified as LEED-H platinum or gold or build green emerald or egold eand huses nat dleast dthirty ipercent STBTCºless goldenergy andthan hasis achievedrequired anby the prescriptive path of the most current applicable energy ratingconservation systemcode indexpromulgated by the construction industries division of =the =regulation oand hlicensing ldepartment ]for bbuild ,dgreen igold aor ºLEED-H, eor uses at least forty percent less energy than is required by the prescriptive path of the most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department for build green emerald or lower;LEED platinum;

or »STBTC(c) STBTCºgold and uses at least thirty r i = r t e w d percent less energy than is required by the prescriptive path m a nbuilding othat: d m :

b e d s º o t n = .219699.5AIC March 15, 2021 (3:01pm) s k m e - 65 - e a n e d r e l u [ A d HTRC/HB 15 of the most current applicable energy conservation code promulgated by the construction industries division of the regulation and licensing department for build green gold or LEED-H, or uses at least forty percent less energy than is required by the prescriptive path of the most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department for build green emerald or LEED platinum;

or»STBTC (c) a building that:

and 3) has reduced energy consumption beginning January 1, 2012 by forty percent based on the national average for that building type as h published by the United States department of energy as u » r substantiated by the United States environmental protection t h g e agency target finder energy performance results form, dated no l i h r sooner than the schematic design phase of development;

iHTRC/HB s15/a hPage ,66 e h (22) "sustainable residential building" means:

t u g e b l (a) a building used as a single-family e e , gh n d d i residence that:

1) is certified as LEED-H platinum or gold or = = o h l ] b ,d i a º r build green emerald or gold;

2) STBTCºuses hasat achievedleast athirty homepercent eless renergy =than tis erequired wby dthe prescriptive path of the most current residential energy ratingconservation systemcode indexpromulgated by the construction industries division of fortythe regulation and licensing department for build green gold or lower»STBTCLEED-H, STBTCºusesor muses aat nleast oforty dpercent mless :energy than is required by the prescriptive path of the most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department for build green emerald or LEED platinum;

b3) rhas eindoor tplumbing ºfixtures oand twater-using nappliances =that, .219699.5AICon Marchaverage, 15,have 2021flow (3:01pm)rates sequal kto mor elower - 66 - e a n e d r e l u [ A d HTRC/HB 15 at least thirty percent less energy than is required by the prescriptiveflow pathrates ofrequired the most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department for buildcertification green gold or LEED-H, or uses at least forty percent less energy than is required by theWaterSense; prescriptive path of the most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department for build green emerald or LEED platinum»STBTC ;

3) has indoor plumbing fixtures and water- using appliances that, on average, have flow rates equal to or lower than the flow rates required for certification by WaterSense;

and 5) if landscape area is available at the rear of h the property, has at least one water line outside the building u » r below the frost line that may be connected to a drip irrigation t h g e system;

or l i h r i s (b) manufactured housing that is Energy hHTRC/HB ,15/a ePage h67 Star-qualified;

t u g e b l (23) "tribal" means of, belonging to or e e , gh n d d i created by a federally recognized Indian nation, tribe or = = o h l ] b ,d i a º r pueblo;

e r = t e w d (24) "WaterSense" means a program created by mthe afederal nenvironmental oprotection dagency mthat :certifies water-using products that meet the environmental protection agency's criteria for efficiency and performance;

b(25) r"zero ecarbon tcertified" ºmeans oa tbuilding nthat =is .219699.5AICcertified Marchas 15,LEED 2021zero (3:01pm)carbon sby kachieving m e - 67 - e a ncarbon-dioxide-equivalent ebalance dof rzero efor l u [ A d HTRC/HB 15 the federalbuilding; environmental protection agency that certifies water-using products that meet the environmental protection agency's criteria for efficiency and performance;

(25) "zero carbon certified" means a building that is certified as LEED zero carbon by achieving a carbon- dioxide-equivalent balance of zero for the building;

APPLICABILITY.--The provisions of Sections 2 h u » r and 4 of this act apply to taxable years beginning on or after t h g e January 1, 2021.

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