SB 343
Page 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
AN ACT
RELATING TO TAXATION; ALLOWING THE STATUTE OF LIMITATIONS TO
BE SUSPENDED DURING A PROCEEDING TO QUASH AN ADMINISTRATIVE
SUBPOENA ISSUED BY THE SECRETARY OF TAXATION AND REVENUE;
MAKING TECHNICAL CORRECTIONS TO CERTAIN SECTIONS OF THE NMSA
1978 FOR TAX ADMINISTRATION AND ENFORCEMENT AND TO AID IN
COMPLYING WITH THE TAX REFUND INTERCEPT PROGRAM ACT;
PROVIDING FOR ONE SOLAR MARKET DEVELOPMENT TAX CREDIT PER
MARRIED COUPLE; RECONCILING MULTIPLE AMENDMENTS TO THE SAME
SECTION OF LAW IN LAWS 2005; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-1-4 NMSA 1978 (being Laws 1965,
Chapter 248, Section 10, as amended) is amended to read:
"7-1-4. INVESTIGATIVE AUTHORITY AND POWERS.--
A. For the purpose of establishing or determining
the extent of the liability of any person for any tax, for
the purpose of collecting any tax, for the purpose of
enforcing any statute administered under the provisions of
the Tax Administration Act or for the purpose of
investigating possible criminal violations of the revenue
laws of this state, including fraud or other crimes that may
affect the taxes due to the state, the secretary or the
secretary's delegate is authorized to examine equipment and
to examine and require the production of any pertinent
pg_0002
SB 343
Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
records, books, information or evidence, to require the
presence of any person and to require that person to testify
under oath concerning the subject matter of the inquiry and
to make a permanent record of the proceedings.
B. As a means for accomplishing the matters
referred to in Subsection A of this section, the secretary is
hereby invested with the power to issue subpoenas and
summonses. In no case shall a subpoena or summons be made
returnable less than ten days from the date of service.
C. Any subpoena or summons issued by the secretary
shall state with reasonable certainty the nature of the
evidence required to be produced, the time and place of the
hearing, the nature of the inquiry or investigation and the
consequences of failure to obey the subpoena or summons;
shall bear the seal of the department; and shall be attested
by the secretary.
D. After service of a subpoena or summons upon the
person, if any person neglects or refuses to appear in
response to the summons or neglects or refuses to produce
records or other evidence or to allow the inspection of
equipment in response to the subpoena or neglects or refuses
to give testimony as required, the department may invoke the
aid of the court in the enforcement of the subpoena or
summons. In appropriate cases, the court shall issue its
order requiring the person to appear and testify or produce
pg_0003
SB 343
Page 3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
books or records and may, upon failure of the person to
comply with the order, punish the person for contempt.
E. If a person, the extent of whose tax liability
is being established, or that person's agent, nominee or
other person acting under the direction or control of that
person, files an action with the court to quash a subpoena or
summons issued by the secretary or that court pursuant to
this section, the running of the period of limitations
pursuant to Sections 7-1-18 and 7-1-19 NMSA 1978 or Section
30-1-8 NMSA 1978 with respect to the tax liability under
investigation shall be suspended for the period during which
a proceeding and related appeals regarding the enforcement of
the subpoena or summons is pending."
Section 2. Section 7-2-5.8 NMSA 1978 (being Laws 2005,
Chapter 104, Section 5) is amended to read:
"7-2-5.8. EXEMPTION FOR LOW- AND MIDDLE-INCOME
TAXPAYERS.--
A. An individual may claim an exemption in an
amount specified in Subsections B through D of this section
not to exceed an amount equal to the number of federal
exemptions multiplied by two thousand five hundred dollars
($2,500) of income includable, except for this exemption, in
net income.
B. For a married individual filing a separate
return with adjusted gross income up to twenty thousand three
pg_0004
SB 343
Page 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
hundred thirty-three dollars ($20,333):
(1) if the adjusted gross income is not
over twelve thousand dollars ($12,000), the amount of the
exemption pursuant to this section shall be two thousand five
hundred dollars ($2,500) for each federal exemption; and
(2) if the adjusted gross income is over
twelve thousand dollars ($12,000) but not over twenty
thousand three hundred thirty-three dollars ($20,333), the
amount of the exemption pursuant to this section for each
federal exemption shall be calculated as follows:
(a) two thousand five hundred dollars
($2,500); less
(b) twenty percent of the amount
obtained by subtracting twelve thousand dollars ($12,000)
from the adjusted gross income.
C. For single individuals with adjusted gross
income up to twenty-seven thousand one hundred ten dollars
($27,110):
(1) if the adjusted gross income is not
over sixteen thousand dollars ($16,000), the amount of the
exemption pursuant to this section shall be two thousand five
hundred dollars ($2,500) for each federal exemption; and
(2) if the adjusted gross income is over
sixteen thousand dollars ($16,000) but not over twenty-seven
thousand one hundred ten dollars ($27,110), the amount of the
pg_0005
SB 343
Page 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
exemption pursuant to this section for each federal exemption
shall be calculated as follows:
(a) two thousand five hundred dollars
($2,500); less
(b) fifteen percent of the amount
obtained by subtracting sixteen thousand dollars ($16,000)
from the adjusted gross income.
D. For married individuals filing joint returns,
surviving spouses or for heads of households with adjusted
gross income up to forty thousand six hundred sixty-seven
dollars ($40,667):
(1) if the adjusted gross income is not
over twenty-four thousand dollars ($24,000), the amount of
the exemption pursuant to this section shall be two thousand
five hundred dollars ($2,500) for each federal exemption; and
(2) if the adjusted gross income is over
twenty-four thousand dollars ($24,000) but not over forty
thousand six hundred sixty-seven dollars ($40,667), the
amount of the exemption pursuant to this section for each
federal exemption shall be calculated as follows:
(a) two thousand five hundred dollars
($2,500); less
(b) ten percent of the amount obtained
by subtracting twenty-four thousand dollars ($24,000) from
the adjusted gross income."
pg_0006
SB 343
Page 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Section 3. 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 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 may apply for, and the department
may allow, a solar market development tax credit 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
pg_0007
SB 343
Page 7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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.
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.
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.
pg_0008
SB 343
Page 8
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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. 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.
G. A husband and a 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 provided in
this section that would have been allowed on a joint return.
H. As used in this section:
(1) "photovoltaic system" means an energy
system that collects or absorbs sunlight for conversion into
electricity; and
pg_0009
SB 343
Page 9
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
(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 4. Section 7-2C-5 NMSA 1978 (being Laws 1985,
Chapter 106, Section 5, as amended) is amended to read:
"7-2C-5. DEPARTMENT TO AID IN COLLECTION OF DEBTS
THROUGH SETOFF.--Subject to the limitations contained in the
Tax Refund Intercept Program Act, the department, upon
request, shall render assistance in the collection of any
debt owed to a claimant agency or any debt that a claimant
agency is obligated by law to collect. This assistance shall
be provided by withholding from any refund due to the debtor
pursuant to the Income Tax Act or the Corporate Income and
Franchise Tax Act the amount of debt meeting the requirements
of the Tax Refund Intercept Program Act and paying over to
the claimant agency the amount withheld."
Section 5. Section 9-11-4 NMSA 1978 (being Laws 1977,
Chapter 249, Section 4, as amended by Laws 2005, Chapter 108,
Section 5 and by Laws 2005, Chapter 110, Section 6) is
amended to read:
"9-11-4. DEPARTMENT ESTABLISHED.--There is created in
the executive branch the "taxation and revenue department".
The department shall be a cabinet department and shall
consist of, but not be limited to, seven divisions as
pg_0010
SB 343
Page 10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
follows:
A. the audit and compliance division;
B. the property tax division;
C. the revenue processing division;
D. the tax fraud investigations division;
E. the motor vehicle division;
F. the administrative services division; and
G. the information technology division."
Section 6. APPLICABILITY.--The provisions of Sections
2, 3 and 4 of this act shall be applicable to taxable years
beginning on or after January 1, 2007.
Section 7. EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect
immediately.