House Bill text for HB0134

HOUSE BILL 134

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Karen E. Giannini

AN ACT

RELATING TO TAXATION; ENACTING NEW SECTIONS OF THE INCOME TAX ACT AND THE CORPORATE INCOME AND FRANCHISE TAX ACT TO PROVIDE FOR VOLTAGE REGULATION TECHNOLOGY EQUIPMENT TAX CREDITS.

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] VOLTAGE REGULATION TECHNOLOGY EQUIPMENT TAX CREDIT.--

A. A taxpayer who files an individual New Mexico income tax return for a taxable year beginning on or after January 1, 2011 and who purchases and installs after January 1, 2011 but before December 31, 2021 voltage regulation technology equipment in a residence, business or agricultural enterprise in New Mexico owned by that taxpayer may apply for, and the department may allow, a tax credit of up to thirty percent of the purchase and installation costs of the equipment. The credit provided in this section may be referred to as the "voltage regulation technology equipment tax credit". The total voltage regulation technology equipment tax credit allowed to a taxpayer shall not exceed nine thousand dollars ($9,000). The department shall allow a voltage regulation technology equipment that is tax credit only for voltage regulation technology equipment that is certified by the energy, minerals and natural resources department and that reduces energy consumption, improves grid efficiency, raises or lowers voltage dynamically and is ninety-nine percent or more efficient across at least ninety percent of the load curve.

B. A portion of the voltage regulation technology equipment 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 the credit is fully expended.

C. Prior to July 1, 2011, the energy, minerals and natural resources department shall adopt rules establishing procedures to provide certification of voltage regulation technology equipment for purposes of obtaining a voltage regulation technology equipment tax credit. The rules shall address technical specifications and requirements relating to safety, building code and standards compliance; minimum system sizes and system applications; and lists of eligible expenses for the tax credits, including materials, labor costs properly allocable to on-site preparation, assembly and installation, engineering services, designs and plans directly related to the construction or installation and utility compliance costs. 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.

D. The department may allow a maximum annual aggregate of two million dollars ($2,000,000) in voltage regulation technology equipment tax credits. Applications for the credit shall be considered in the order received by the department.

E. A taxpayer who otherwise qualifies and claims a voltage regulation technology equipment tax credit with respect to property owned by a partnership or other business association of which the taxpayer is a member may claim a credit only in proportion to that taxpayer's interest in the partnership or association. The total credit claimed in the aggregate by all members of the partnership or association with respect to the property shall not exceed the amount of the credit that could have been claimed by a sole owner of the property.

F. 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."

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

"[NEW MATERIAL] VOLTAGE REGULATION TECHNOLOGY EQUIPMENT TAX CREDIT.--

A. A taxpayer that files a New Mexico corporate income tax return for a taxable year beginning on or after January 1, 2011 and that purchases and installs after January 1, 2011 but before December 31, 2021 voltage regulation technology equipment in a property owned by the taxpayer may claim against the taxpayer's corporate income tax liability, and the department may allow, a tax credit of up to thirty percent of the purchase and installation costs of the system. The credit provided in this section may be referred to as the "voltage regulation technology equipment tax credit". The total voltage regulation technology equipment tax credit allowed to a taxpayer shall not exceed nine thousand dollars ($9,000). The department shall allow a voltage regulation technology equipment tax credit only for voltage regulation technology equipment that is certified by the energy, minerals and natural resources department and that reduces energy consumption, improves grid efficiency, raises or lowers voltage dynamically and is ninety-nine percent or more efficient across at least ninety percent of the load curve.

C. Prior to July 1, 2011, the energy, minerals and natural resources department shall adopt rules establishing procedures to provide certification of voltage regulation technology equipment for purposes of obtaining a voltage regulation technology equipment tax credit. The rules shall address technical specifications and requirements relating to safety, building code and standards compliance; minimum system sizes and system applications; and lists of eligible expenses for the tax credit, including materials, labor costs properly allocable to on-site preparation, assembly and installation, engineering services, designs and plans directly related to the construction or installation and utility compliance costs. 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.