us-nm/stat
NMSA 1978, § 7-2-18.31 — New solar market development income tax credit
A.
For taxable years ending prior to January 1, 2032, a taxpayer who is not a
dependent of another individual and who, on or after March 1, 2020, purchases and
installs a solar thermal system or a photovoltaic system in a residence, business or
agricultural enterprise in New Mexico owned by that taxpayer or by a federally
recognized Indian nation, tribe or pueblo and held in leasehold by that taxpayer may
claim, and the department may allow, a credit against the taxpayer's tax liability
imposed pursuant to the Income Tax Act in an amount provided in Subsection C of this
section. The tax credit provided by this section may be referred to as the "new solar
market development income tax credit".
B.
The purpose of the new solar market development income tax credit is to
encourage the installation of solar thermal and photovoltaic systems in residences,
businesses and agricultural enterprises.
C.
The department may allow a new solar market development income tax credit of
ten percent of the purchase and installation costs of a solar thermal or photovoltaic
system.
D.
The new solar market development income tax credit shall not exceed six
thousand dollars ($6,000) per taxpayer per taxable year. The department shall allow a
tax credit only for solar thermal and photovoltaic systems certified pursuant to
Subsection E of this section.
E.
Subject to the limitation provided in Subsection F of this section, a taxpayer shall
apply for certification of eligibility for the new solar market development income tax
credit from the energy, minerals and natural resources department on forms and in the
manner prescribed by that department. Completed applications shall be considered in
the order received. The application shall include proof of purchase and installation of a
solar thermal or photovoltaic system, that the system meets technical specifications and
requirements relating to safety, code and standards compliance, solar collector
orientation and sun exposure, minimum system sizes, system applications and lists of
eligible components and any additional information that the energy, minerals and
natural resources department may require to determine eligibility for the credit. A dated
certificate of eligibility shall be issued to the taxpayer providing the amount of the new
solar market development income tax credit for which the taxpayer is eligible and the
taxable year in which the credit may be claimed. A certificate of eligibility for a new
solar market development income tax credit may be sold, exchanged or otherwise
transferred to another taxpayer for the full value of the credit. The parties to such a
transaction shall notify the department of the sale, exchange or transfer within ten days
of the sale, exchange or transfer. The energy, minerals and natural resources
department shall provide the department appropriate information for all certificates of
eligibility in a secure manner on regular intervals agreed upon by both departments.
F.
The aggregate amount of credits that may be certified pursuant to Subsection E
of this section is as follows, and applications for certification received after these
limitations have been met shall not be approved:
(1) for calendar years 2020 through 2023, twelve million dollars ($12,000,000)
for each calendar year; provided that if this limitation has been met for any of those
calendar years, an additional total of twenty million dollars ($20,000,000) in credits may
be certified for all of those calendar years; and provided further that credits certified
pursuant to this paragraph shall be claimed only for taxable year 2023; and
(2) for calendar years 2024 and thereafter, thirty million dollars ($30,000,000)
for each calendar year.
G.
A taxpayer may claim a new solar market development income tax credit for the
taxable year in which the taxpayer purchases and installs a solar thermal or photovoltaic
system. To receive a new solar market development income tax credit, a taxpayer shall
claim the credit on forms and in the manner prescribed by the department within twelve
months following the calendar year in which the system was installed; provided that, for
a taxpayer who receives a certificate of eligibility pursuant to Paragraph (1) of
Subsection F of this section, the taxpayer shall apply to the department within twelve
months following the calendar year in which the certification is made. The claim shall
include a certification made pursuant to Subsection E of this section.
H.
That portion of a new solar market development income tax credit that exceeds a
taxpayer's tax liability in the taxable year in which the credit is claimed shall be refunded
to the taxpayer.
I.
Married individuals filing separate returns for a taxable year for which they could
have filed a joint return may each claim only one-half of the new solar market
development income tax credit that would have been claimed on a joint return.
J.
A taxpayer may be allocated the right to claim a new solar market development
income tax credit in proportion to the taxpayer's ownership interest if the taxpayer owns
an interest in a business entity that is taxed for federal income tax purposes as a
partnership or limited liability company and that business entity has met all of the
requirements to be eligible for the credit. The total credit claimed by all members of the
partnership or limited liability company shall not exceed the allowable credit pursuant to
this section.
K.
A taxpayer allowed a tax credit pursuant to this section shall claim the credit on
forms and in a manner required by the department.
L.
The tax credit provided by this section shall be included in the tax expenditure
budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of
the tax credit.
M.
As used in this section:
(1) "photovoltaic system" means an energy system that collects or absorbs
sunlight for conversion into electricity; and
(2) "solar thermal system" means an energy system that collects or absorbs
solar energy for conversion into heat for the purposes of space heating, space cooling
or water heating.
Source: official text