0001|                           SENATE BILL 131
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                          PHILLIP J. MALOOF
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO TAXATION; PROVIDING A CREDIT AGAINST INDIVIDUAL
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0012|     INCOME TAX FOR CERTAIN SOLAR ENERGY EQUIPMENT.
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0013|     
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0014|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015|          Section 1.  A new section of the Income Tax Act is
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0016|     enacted to read:
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0017|          "[<u>NEW MATERIAL</u>] SOLAR ENERGY TAX CREDIT.--
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0018|               A.  Any resident who files an individual New Mexico
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0019|     income tax return and who is not a dependent of another
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0020|     individual may claim a tax credit not to exceed three thousand
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0021|     dollars ($3,000) in an amount equal to twenty-five percent of
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0022|     the cost of equipment and installation of the equipment used
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0023|     in the taxpayer's principal residence for heating, cooling or
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0024|     the generation of electricity through the use of solar energy,
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0025|     if the residence is located in New Mexico.  The person
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<center>- 1 -</center>

0001|     furnishing or installing the equipment shall furnish the
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0002|     taxpayer with an accounting of the cost to the taxpayer.
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0003|               B.  The credit provided by this section may only be
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0004|     credited against the taxpayer's New Mexico income tax
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0005|     liability for the taxable year in which the solar equipment
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0006|     was installed in the taxpayer's residence.  If the tax credit
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0007|     exceeds the taxpayer's individual income tax liability, the
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0008|     excess shall be refunded to the taxpayer.
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0009|               C.  A husband and wife who file separate returns
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0010|     for a taxable year in which they could have filed a joint
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0011|     return may each claim only one-half of the tax credit that
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0012|     would have been allowed on a joint return.  In the case of
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0013|     rental property, a lessor or lessee may only claim his share
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0014|     of the credit based on the expenditures incurred by him,
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0015|     provided that the total tax credit claimed shall not exceed
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0016|     the tax credit allowed for a single location.
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0017|               D.  A taxpayer may claim the credit provided by the
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0018|     provisions of this section for each taxable year in which
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0019|     equipment is installed.  Claims for the credit provided shall
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0020|     be limited to three consecutive years and the maximum
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0021|     aggregate credit allowable shall not exceed three thousand
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0022|     dollars ($3,000) for any single residence.
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0023|               E.  To qualify for the tax credit pursuant to the
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0024|     provisions of this section, the solar equipment shall be:
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0025|                    (1)  certified pursuant to the provisions of
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0001|     the Solar Collector Standards Act; or
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0002|                    (2)  designated as such by the department.
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0003|          Section 2.  APPLICABILITY.--The provisions of this act
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0004|     are applicable to tax years beginning on or after January 1,
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0005|     1998.
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0006|                              
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