SENATE BILL 100
48th legislature - STATE OF NEW MEXICO - second session, 2008
INTRODUCED BY
Dede Feldman
AN ACT
RELATING TO TAXATION; PROVIDING THAT PROPERTY OWNED BY A LIMITED LIABILITY COMPANY OR OTHER BUSINESS ASSOCIATION IS ELIGIBLE FOR THE SOLAR MARKET DEVELOPMENT TAX CREDIT; PROVIDING THAT THE SOLAR MARKET DEVELOPMENT TAX CREDIT SHALL BE REFUNDABLE FOR CERTAIN TAXPAYERS; AMENDING A SECTION OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-2-18.14 NMSA 1978 (being Laws 2006, Chapter 93, Section 1) is amended to read:
"7-2-18.14. SOLAR MARKET DEVELOPMENT TAX CREDIT--RESIDENTIAL AND SMALL BUSINESS SOLAR THERMAL AND PHOTOVOLTAIC MARKET DEVELOPMENT TAX CREDIT.--
A. Except as provided in Subsection [B] C of this section, a taxpayer who files an individual New Mexico income
tax return for a taxable year beginning on or after January 1, 2006 and who purchases and installs after January 1, 2006 but
before December 31, 2015 a solar thermal system or a photovoltaic system in a residence, business or agricultural enterprise in New Mexico [owned by that taxpayer] may apply for, and the department may allow, a solar market development tax credit [of up to] if the residence, business or agricultural enterprise is:
(1) owned by the taxpayer; or
(2) owned by a limited liability company or other business association of which the taxpayer is an owner.
B. The amount of the solar market development tax credit shall be not more than thirty percent of the purchase and installation costs of the system; provided that under no circumstances shall the federal and state tax credits allowed, when combined, total more than thirty percent of the purchase and installation cost of the system. To determine the amount of the state solar market development tax credit due pursuant to this section, the amount of the allowable federal tax credit, whether claimed or not claimed by the taxpayer, shall be deducted from thirty percent of the purchase and installation cost of the system. The total solar market development tax credit allowed for either a photovoltaic system or a solar thermal system shall not exceed nine thousand dollars ($9,000). The department shall allow solar market development tax credits only for solar thermal systems and photovoltaic systems certified by the energy, minerals and natural resources department.
[B.] C. Solar market development tax credits may not be claimed or allowed for:
(1) a heating system for a swimming pool or a hot tub; or
(2) a commercial or industrial photovoltaic system other than an agricultural photovoltaic system on a farm or ranch that is not connected to an electric utility transmission or distribution system.
[C.] D. The department may allow a maximum annual aggregate of:
(1) two million dollars ($2,000,000) in solar market development tax credits for solar thermal systems; and
(2) three million dollars ($3,000,000) in solar market development tax credits for photovoltaic systems.
[D.] E. A portion of the solar market development tax credit that remains unused in a taxable year may be carried forward for a maximum of ten consecutive taxable years following the taxable year in which the credit originates until fully expended.
F. If the amount of the tax credit allowed by the department exceeds the taxpayer's income tax liability for the taxable year, and if the taxpayer has a modified gross income for the taxable year of less than one hundred fifty percent of the federal poverty level, the excess may be refunded to the taxpayer.
G. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the credit that would have been allowed on a joint return.
H. A taxpayer who otherwise qualifies for and claims a credit pursuant to this section for purchase and installation of a solar thermal system or a photovoltaic system by a limited liability company or other business association of which the taxpayer is an owner may claim a credit only in proportion to the taxpayer's interest in the limited liability company or business association. The total credit claimed in the aggregate by all owners of the limited liability company or business association shall not exceed the amount of credit allowed pursuant to Subsection B of this section.
[E.] I. Prior to July 1, 2006, the energy, minerals and natural resources department shall adopt rules establishing procedures to provide certification of solar thermal systems and photovoltaic systems for purposes of obtaining a solar market development tax credit. The rules shall address 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. The energy, minerals and natural resources department may modify the specifications and requirements as necessary to maintain a high level of system quality and performance.
[F.] J. 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."
Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2008.
- 5 -