SB0210

SENATE BILL 210

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Carlos R. Cisneros

AN ACT

RELATING TO TAXATION; ENACTING A NEW SECTION OF THE INCOME TAX ACT AND A NEW SECTION OF THE CORPORATE INCOME AND FRANCHISE TAX ACT TO PROVIDE FOR HYDROGEN FUEL PRODUCTION 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] HYDROGEN FUEL PRODUCTION PERSONAL INCOME TAX CREDIT.--

A. A taxpayer who files an individual New Mexico income tax return and who is not a dependent of another taxpayer may claim the hydrogen fuel production personal income tax credit if the taxpayer holds title to a qualified hydrogen fuel or hydrogen resource generator that first produced hydrogen on or before January 1, 2018.

B. The tax credit provided in this section may be referred to as the "hydrogen fuel production personal income tax credit". The purpose of the hydrogen fuel production personal income tax credit is to stimulate the production 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. A taxpayer eligible for a hydrogen fuel production personal income tax credit shall be eligible for the tax credit for ten consecutive years, beginning on the date that the qualified hydrogen fuel or hydrogen resource generator begins producing hydrogen. Any portion of the tax credit allowed pursuant to this section that remains unused at the end of the taxpayer's taxable year may be carried forward for ten consecutive years.

F. A person who otherwise qualifies and claims a hydrogen fuel production personal income tax credit with respect to property owned by a partnership or other business association of which the person is a member may claim a credit only in proportion to that person'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.

G. 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.

H. No later than October 30 of each year, the department shall compile a report in regard to the hydrogen fuel production personal and corporate income tax credits provided pursuant to the Income Tax Act and the Corporate Income and Franchise Tax Act for the revenue stabilization and tax policy committee that includes:

(1) the number of people applying for hydrogen fuel production personal and corporate income tax credits;

(2) the number and amount of hydrogen fuel production personal and corporate income tax credits allowed;

(3) the number of new jobs created in New Mexico in the taxable year by construction and installation of hydrogen fuel or resource 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 and the average median wage of those employees; 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 personal and corporate income tax credits.

I. Notwithstanding any other section of law to the contrary, the department may reveal to the revenue stabilization and tax policy committee the number of applicants seeking hydrogen fuel production personal income tax credits pursuant to this section and the amount of each credit approved.

J. The revenue stabilization and tax policy committee shall review the impact of the hydrogen fuel production personal income tax credit every five years beginning in 2014.

K. Acceptance by a person of a hydrogen fuel production personal income tax credit pursuant to this section is authorization by the person receiving the tax credit for the department to reveal information to the legislature necessary to analyze the impact of the hydrogen fuel production personal income tax credit on state revenues.

L. As used in this section, "qualified hydrogen fuel generator" means a hydrogen fuel generator or hydrogen energy resource generator that uses:

(1) renewably powered electrolysis such as that which is:

(a) solar-light-derived;

(b) solar-heat-derived;

(d) hydroelectric-derived; or

(e) geothermal-derived;

(2) renewably powered pyrolysis such as that which is:

(a) solar-light-derived;

(b) solar-heat-derived;

(d) wind-derived;

(e) hydroelectric-derived; or

(f) geothermal-derived; or

(3) biomass or cellulose."

SECTION 2. 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. 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 first produced hydrogen on or before January 1, 2018.

B. The tax credit provided in this section may be referred to as the "hydrogen fuel production corporate income tax credit". The purpose of the hydrogen fuel production corporate income tax credit is to stimulate the production of hydrogen as a renewable fuel and energy source.

C. The tax credit provided in this section shall not be claimed as an addition to the renewable energy production tax credit pursuant to Section 7-2-18.18 or 7-2A-19 NMSA 1978.

E. A taxpayer eligible for a hydrogen fuel production corporate income tax credit shall be eligible for the tax credit for ten consecutive years, beginning on the date the qualified hydrogen fuel or hydrogen resource generator begins producing hydrogen. Any portion of the tax credit allowed pursuant to this section that remains unused at the end of the taxpayer's taxable year may be carried forward for ten consecutive years.

F. No later than October 30 of each year, the department shall compile a report in regard to the hydrogen fuel production personal and corporate income tax credits provided pursuant to the Income Tax Act and the Corporate Income and Franchise Tax Act for the revenue stabilization and tax policy committee that includes:

(1) the number of people applying for hydrogen fuel production personal and corporate income tax credits;

(2) the number and amount of hydrogen fuel production personal and corporate income tax credits allowed;

(4) the number of people employed in the generation of hydrogen for fuel 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 personal and corporate income tax credits.

G. Notwithstanding any other section of law to the contrary, the department may reveal to the revenue stabilization and tax policy committee the number of applicants seeking hydrogen fuel production corporate income tax credits pursuant to this section and the amount of each tax credit approved.

H. The revenue stabilization and tax policy committee shall review the impact of the hydrogen fuel production corporate income tax credit every five years beginning in 2014.

I. Acceptance by a person of a hydrogen fuel production corporate income tax credit pursuant to this section is authorization by the person receiving the credit for the department to reveal information to the legislature necessary to analyze the impact of the hydrogen fuel production tax credit on state revenues.

J. As used in this section, "qualified hydrogen fuel generator" means a hydrogen fuel generator or hydrogen energy resource generator that uses:

(1) renewably powered electrolysis such as that which is:

(a) solar-light-derived;

(b) solar-heat-derived;

(d) hydroelectric-derived; or

(e) geothermal-derived;

(2) renewably powered pyrolysis such as that which is:

(a) solar-light-derived;

(b) solar-heat-derived;

(d) wind-derived;

(e) hydroelectric-derived; or

(f) geothermal-derived; or

(3) biomass or cellulose."

SECTION 3. APPLICABILITY.--The provisions of this act are applicable to taxable years beginning on or after January 1, 2011.

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