HOUSE BILL 454
52nd legislature - STATE OF NEW MEXICO - first session, 2015
INTRODUCED BY
Carl Trujillo
AN ACT
RELATING TO TAXATION; CREATING THE HYDROGEN FUEL PRODUCTION CORPORATE INCOME TAX CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Corporate Income and Franchise Tax Act is enacted to read:
"[NEW MATERIAL] HYDROGEN FUEL PRODUCTION CORPORATE INCOME TAX CREDIT.--
A. Prior to January 1, 2021, a taxpayer that files a New Mexico corporate income tax return may claim the hydrogen fuel production corporate income tax credit if the taxpayer holds title to a qualified hydrogen fuel or hydrogen resource generator that produces and sells hydrogen. The tax credit provided in this section may be referred to as the "hydrogen fuel production corporate income tax credit".
B. The purpose of the hydrogen fuel production corporate income tax credit is to stimulate the production and sale of hydrogen as a renewable fuel and energy source.
C. The tax credit provided in this section shall not be claimed in addition to the renewable energy production tax credit pursuant to Section 7-2-18.18 or 7-2A-19 NMSA 1978.
D. The amount of the tax credit shall equal the cost of generating the hydrogen but shall not exceed one dollar ($1.00) per kilogram of the first four million kilograms of hydrogen fuel produced and sold by the qualified hydrogen fuel or hydrogen resource generator in the taxable year.
E. The department may allow a maximum annual aggregate of four million dollars ($4,000,000) in hydrogen fuel production corporate income tax credits per year. Applications for the tax credit shall be considered in the order received by the department.
F. A taxpayer shall claim a hydrogen fuel production corporate income tax credit within five years of the date that the qualified hydrogen fuel or hydrogen resource generator begins producing hydrogen. To receive a hydrogen fuel production corporate income tax credit, a taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include a certification made pursuant to Subsection G of this section.
G. A taxpayer may apply for a certificate of eligibility as a qualified hydrogen fuel or hydrogen resource generator from the energy, minerals and natural resources department. Applications shall be considered in the order received. If the energy, minerals and natural resources department determines that the taxpayer is a qualified hydrogen fuel or hydrogen resource generator, the energy, minerals and natural resources department may issue a certificate of eligibility to the taxpayer. The energy, minerals and natural resources department may issue rules governing the procedure for administering the provisions of this subsection.
H. No later than October 30 of each year, the department shall compile a report in regard to the hydrogen fuel production corporate income tax credit pursuant to the Corporate Income and Franchise Tax Act for the revenue stabilization and tax policy committee that includes:
(1) the number of people applying for a hydrogen fuel production corporate income tax credit;
(2) the number and amount of hydrogen fuel production corporate income tax credits allowed;
(3) the number of new jobs created in New Mexico in the taxable year by the construction and installation of hydrogen fuel or hydrogen resource generator systems, the level of production of hydrogen fuel by qualified hydrogen fuel or hydrogen resource generators claiming the tax credit and the total production level in the state;
(4) the number of people employed in the generation of hydrogen for fuel or by hydrogen resource generators and the average and median wages of those employed; and
(5) any other data or information deemed necessary by the department to aid the committee in determining the impact of the hydrogen fuel production corporate income tax credit.
I. That portion of a hydrogen fuel production corporate income tax credit that exceeds a taxpayer's tax liability in the taxable year in which the tax credit is claimed may be carried forward for a maximum of five consecutive taxable years.
J. A taxpayer allowed a hydrogen fuel production corporate income tax credit pursuant to this section shall report the amount of the tax credit to the department in a manner required by the department.
K. The department shall compile an annual report on the hydrogen fuel production corporate income tax credit 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 2017 and every three years thereafter that the tax credit is in effect, the department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the tax credit and whether the tax credit is performing the purpose for which it was created.
L. As used in this section, "qualified hydrogen fuel or hydrogen resource generator" means a hydrogen fuel generator or hydrogen resource generator that uses renewably powered thermolysis or electrolysis that is:
(1) solar-light-derived;
(2) solar-heat-derived;
(3) plasma-derived;
(4) wind-derived;
(5) hydroelectric-derived; or
(6) geothermal-derived."
SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2015.
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