2005 Senate Bill text for SB0334

SENATE BILL 334

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Carlos R. Cisneros

AN ACT

RELATING TO TAXATION; ENACTING THE SOLAR THERMAL AND PHOTOVOLTAIC SYSTEMS TAX CREDIT ACT; MAKING APPROPRIATIONS.

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

Section 1. SHORT TITLE.--Sections 1 through 6 of this act may be cited as the "Solar Thermal and Photovoltaic Systems Tax Credit Act".

Section 2. DEFINITIONS.--As used in the Solar Thermal and Photovoltaic Systems Tax Credit Act:

A. "department" means the taxation and revenue department;

B. "photovoltaic system" means a stand-alone or a grid-connected energy system that collects or absorbs sunlight for conversion into electricity; and

C. "solar thermal system" means an energy system that collects or absorbs solar heat energy for conversion into electricity.

Section 3. INCOME TAX--CORPORATE INCOME TAX--CREDIT FOR SOLAR THERMAL SYSTEM OR PHOTOVOLTAIC SYSTEM INSTALLATION.--

A. Except as otherwise provided by Subsection C of this section and until the last day of the 2014 taxable year, a person who files an individual New Mexico income tax return and who during the taxable year pays for installation of a solar thermal system at a residence in New Mexico owned by that person may apply for, and the department may allow, a tax credit in an amount equal to fifteen percent of the installation costs, provided that the maximum tax credit that may be claimed by the taxpayer pursuant to this subsection shall not exceed one thousand five hundred dollars ($1,500).

B. Except as otherwise provided by Subsection C of this section and until the last day of the 2014 taxable year, a person that files a corporate income tax return and that during the taxable year pays for installation of a solar thermal system at a commercial facility in New Mexico owned by that person may apply for, and the department may allow, a credit in an amount equal to fifteen percent of the installation costs, provided that the maximum tax credit that may be claimed by the taxpayer pursuant to this subsection shall not exceed one thousand five hundred dollars ($1,500).

C. The department shall not allow a tax credit pursuant to this section if allowing that tax credit would cause the aggregate amount of tax credits allowed pursuant to this subsection to exceed one million dollars ($1,000,000).

D. The tax credit allowed pursuant to Subsection A of this section may only be deducted from a taxpayer's New Mexico income tax liability for the taxable year. Any portion of the maximum credit provided by this section that remains unused at the end of the taxpayer's taxable year may be carried forward for seven taxable years; provided that the total credits shall not exceed the maximum allowable credit pursuant to Subsection A of this section. If a person claiming a tax credit pursuant to Subsection A of this section does not have any New Mexico income tax liability, the tax credit may be refunded to that person.

E. 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 allowed pursuant to Subsection A of this section that would have been allowed on a joint return.

F. The tax credit allowed pursuant to Subsection B of this section may only be deducted from a taxpayer's corporate income tax liability for the taxable year. Any portion of the maximum credit provided by this section that remains unused at the end of the taxpayer's taxable year may be carried forward for seven consecutive taxable years; provided that the total credits claimed under this section shall not exceed the maximum allowable pursuant to Subsection B of this section. If a person claiming a tax credit pursuant to Subsection B of this section does not have any corporate income tax liability, the tax credit may be refunded to that person.

Section 4. INCOME TAX--CREDIT FOR SOLAR THERMAL SYSTEM OR PHOTOVOLTAIC SYSTEM INSTALLATION.--

A. Until the last day of the 2014 taxable year, a person who files an individual New Mexico income tax return and who during the taxable year installs a photovoltaic system in a residence in New Mexico owned by that person may apply for, and the department may allow, a credit in an amount equal to three dollars fifty cents ($3.50) per nameplate direct current wattage of that photovoltaic system, provided that:

(1) the maximum tax credit that may be claimed by the taxpayer pursuant to this subsection shall not exceed ten thousand dollars ($10,000); and

(2) the department shall not allow a tax credit pursuant to this subsection if allowing that tax credit would cause the aggregate amount of tax credits allowed pursuant to this subsection to exceed two million dollars ($2,000,000).

B. Until the last day of the 2014 taxable year, a person that files a corporate income tax return and that during the taxable year installs a photovoltaic system in a facility in New Mexico that is owned by that person may apply for, and the department may allow, a credit in an amount equal to one dollar fifty cents ($1.50) per nameplate direct current wattage of that photovoltaic system, provided that:

(1) the maximum tax credit that may be claimed by the taxpayer pursuant to this subsection shall not exceed seventy-five thousand dollars ($75,000); and

C. The tax credit allowed pursuant to Subsection A of this section shall be deducted from a taxpayer's New Mexico income tax liability for the taxable year. Any portion of the maximum credit provided by Subsection A of this section that remains unused at the end of the taxpayer's taxable year may be carried forward for seven consecutive taxable years; provided that the total credits claimed under this section shall not exceed the maximum allowable pursuant to Subsection A of this section. If a person claiming a tax credit pursuant to Subsection A of this section does not have any New Mexico income tax liability, the tax credit may be refunded to that person.

D. 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 allowed pursuant to Subsection A of this section that would have been allowed on a joint return.

E. The tax credit allowed pursuant to Subsection B of this section shall be deducted from the taxpayer's corporate income tax liability for the taxable year. Any portion of the maximum credit provided by Subsection B of this section that remains unused at the end of the taxpayer's taxable year may be carried forward for seven consecutive taxable years; provided that the total credits claimed under this section shall not exceed the maximum allowable pursuant to Subsection B of this section. If a person claiming a tax credit pursuant to Subsection B of this section does not have any corporate income tax liability, the tax credit may be refunded to that person.

Section 5. ADMINISTRATION.--

A. The energy, minerals and natural resources department shall adopt rules for administration of the provisions of the Solar Thermal and Photovoltaic System Tax Act no later than September 30, 2005.

B. The taxation and revenue department shall prescribe application forms for the tax credits allowed pursuant to the Solar Thermal and Photovoltaic System Tax Act no later than December 31, 2005.

Section 6. REPORT TO APPROPRIATE INTERIM COMMITTEE.--Beginning in 2008, the energy, minerals and natural resources department shall report to the appropriate interim committee of the legislature every two years and provide an update of the status of the Solar Thermal and Photovoltaic Systems Tax Act and recommendations for modifications of that act. Section 7. APPROPRIATIONS.--

A. Fifty thousand dollars ($50,000) is appropriated from the general fund to the energy, minerals and natural resources department for expenditure in fiscal year 2006 for staff to administer the provisions of the Solar Thermal and Photovoltaic Systems Tax Act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall revert to the general fund.

B. One hundred fifty thousand dollars ($150,000) is appropriated from the general fund to the energy, minerals and natural resources department for expenditure in fiscal year 2006 to provide training to installers, inspectors and the public on the tax credits allowed pursuant to the Solar Thermal and Photovoltaic System Tax Act and on installation and operation of solar thermal systems and photovoltaic systems. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall revert to the general fund.

Section 8. APPLICABILITY.--The provisions of the Solar Thermal and Photovoltaic Systems Tax Credit Act apply to taxable years beginning on or after January 1, 2005.