SENATE BILL 243

55th legislature - STATE OF NEW MEXICO - first session, 2021

INTRODUCED BY

Martin Hickey

AN ACT

RELATING TO TAXATION; REMOVING A REQUIREMENT TO INSTALL SOLAR ENERGY SYSTEMS ON THE PROPERTY FOR WHICH THE SYSTEM PROVIDES HEAT, HOT WATER OR ELECTRICITY TO BE ELIGIBLE FOR A GROSS RECEIPTS TAX DEDUCTION; ADDING A SUNSET DATE AND REPORTING REQUIREMENTS.

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

     SECTION 1. Section 7-9-112 NMSA 1978 (being Laws 2007, Chapter 204, Section 10) is amended to read:

     "7-9-112. DEDUCTION--GROSS RECEIPTS--SOLAR ENERGY SYSTEMS.--

          A. Prior to July 1, 2030, receipts from the sale and installation of solar energy systems may be deducted from gross receipts.

          B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.

          C. The department shall compile an annual report on the deduction provided by this section that shall include the number of taxpayers that claimed the deduction, the aggregate amount of deductions claimed and any other information necessary to evaluate the effectiveness of the deduction. The department shall compile and present the report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost of the deduction.

          [B.] D. As used in this section, "solar energy system" means an installation that is used to provide space heat, hot water or electricity [to the property in which it is installed] and is:

                (1) an installation that utilizes solar panels that are not also windows, including the solar panels and all equipment necessary for the installation and operation of the solar panels;

                (2) a dark-colored water tank exposed to sunlight, including all equipment necessary for the installation and operation of the water tank as a part of the overall water system of the property; or

                (3) a non-vented trombe wall, including all equipment necessary for the installation and operation of the trombe wall."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2021.

- 3 -