HOUSE BILL 313

54th legislature - STATE OF NEW MEXICO - second session, 2020

INTRODUCED BY

Nathan P. Small

 

 

 

 

 

AN ACT

RELATING TO TAXATION; CREATING THE MOTOR VEHICLE CHARGING STATION INCOME TAX CREDIT AND THE MOTOR VEHICLE CHARGING STATION CORPORATE INCOME TAX CREDIT.

 

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

     SECTION 1. A new section of the Income Tax Act is enacted to read:

     "[NEW MATERIAL] MOTOR VEHICLE CHARGING STATION INCOME TAX CREDIT.--

          A. A taxpayer who is not a dependent of another individual and who installs and places in service a motor vehicle charging station in calendar years 2020 and 2021 may apply for, and the department may allow, a credit of up to seventy-five percent of the cost of the motor vehicle charging station against the taxpayer's tax liability imposed pursuant to the Income Tax Act. The tax credit provided by this section may be referred to as the "motor vehicle charging station income tax credit".

          B. To be eligible for a motor vehicle charging station income tax credit, a taxpayer shall apply to the energy, minerals and natural resources department for certification that the motor vehicle charging station for which the credit is claimed meets all appropriate health and safety rules and regulations pursuant to state and federal law. The certification shall state the number of motor vehicle charging stations certified, the date each station is placed in service and any other information the department may require to determine eligibility for the credit.

          C. A taxpayer may claim a motor vehicle charging station income tax credit for the taxable year in which the taxpayer places in service the motor vehicle charging station for which the credit is claimed. To receive the credit, a taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include the certification made pursuant to Subsection B of this section.

          D. The department may allow no more than twenty-five million dollars ($25,000,000) in motor vehicle charging station income tax credits and motor vehicle charging corporate income tax credits. Completed applications for the credit shall be considered in the order received by the department. Claims for a credit received after the limitation provided in this subsection has been met shall not be approved.

          E. That portion of a motor vehicle charging station income tax credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed may be carried forward for a maximum of five consecutive taxable years.

          F. 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 motor vehicle charging station income tax credit that would have been claimed on a joint return.

          G. A taxpayer may be allocated the right to claim a motor vehicle charging station 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 a limited liability company shall not exceed the allowable credit pursuant to Subsection A of this section.

          H. A taxpayer allowed a tax credit pursuant to this section shall report the amount of the credit to the department in a manner required by the department.

          I. The department shall compile an annual report on the motor vehicle charging station income tax credit that shall include the number of taxpayers approved by the department to receive the credit, the aggregate amount of credits approved and any other information necessary to evaluate the cost of the credit. The department shall present the report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost of the credit.

          J. As used in this section, "motor vehicle charging station" means a new metered-for-fee, public access recharging system for motor vehicles propelled in whole or in part by electricity. "Motor vehicle charging station" does not include a building or the structural components of a building."

     SECTION 2. A new section of the Corporate Income and Franchise Tax Act is enacted to read:

     "[NEW MATERIAL] MOTOR VEHICLE CHARGING STATION CORPORATE INCOME TAX CREDIT.--

          A. A taxpayer that files a New Mexico corporate income tax return and that installs and places in service a motor vehicle charging station in calendar years 2020 and 2021 may apply for, and the department may allow, a credit of up to seventy-five percent of the cost of the motor vehicle charging station against the taxpayer's tax liability imposed pursuant to the Corporate Income and Franchise Tax Act. The tax credit provided by this section may be referred to as the "motor vehicle charging station corporate income tax credit".

          B. To be eligible for a motor vehicle charging station corporate income tax credit, a taxpayer shall apply to the energy, minerals and natural resources department for certification that the motor vehicle charging station for which the credit is claimed meets all appropriate health and safety rules and regulations pursuant to state and federal law. The certification shall state the number of motor vehicle charging stations certified, the date each station is placed in service and any other information the department may require to determine eligibility for the credit.

          C. A taxpayer may claim a motor vehicle charging station corporate income tax credit for the taxable year in which the taxpayer places in service the motor vehicle charging station for which the credit is claimed. To receive the credit, a taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include the certification made pursuant to Subsection B of this section.

          D. The department may allow no more than twenty-five million dollars ($25,000,000) in motor vehicle charging station income tax credits and motor vehicle charging station corporate income tax credits. Completed applications for the credit shall be considered in the order received by the department. Claims for a credit received after the limitation provided in this subsection has been met shall not be approved.

          E. That portion of a motor vehicle charging station corporate income tax credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed may be carried forward for a maximum of five consecutive taxable years.

          F. A taxpayer allowed a tax credit pursuant to this section shall report the amount of the credit to the department in a manner required by the department.

          G. The department shall compile an annual report on the motor vehicle charging station corporate income tax credit that shall include the number of taxpayers approved by the department to receive the credit, the aggregate amount of credits approved and any other information necessary to evaluate the cost of the credit. The department shall present the report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost of the credit.

          H. As used in this section, "motor vehicle charging station" means a new metered-for-fee, public access recharging system for motor vehicles propelled in whole or in part by electricity. "Motor vehicle charging station" does not include a building or the structural components of a building."

     SECTION 3. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2020.