House Bill 176

     "[NEW MATERIAL] BACKUP POWER GENERATOR INCOME TAX CREDIT.--

          A. For taxable years prior to January 1, 2035, a taxpayer who is not a dependent of another individual and who, on or after March 1, 2025, purchases and permanently installs in New Mexico a backup power generator may claim a credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act in an amount provided in Subsection B of this section. The tax credit provided by this section may be referred to as the "backup power generator income tax credit".

          B. The amount of credit that may be allowed shall be in an amount equal to fifty percent of the purchase and installation costs of the backup power generator.

          C. A taxpayer shall apply for certification of eligibility for the credit from the energy, minerals and natural resources department on forms and in the manner prescribed by that department. Except as provided in Subsections F and G of this section, only one tax credit shall be certified per taxpayer. The total annual aggregate amount of credits that may be certified in any calendar year is five million dollars ($5,000,000). Completed applications shall be considered in the order received. Applications for certification received after this limitation has been met in a calendar year shall not be approved for that calendar year, but shall be considered for certification in the following calendar year. The application shall include proof that the taxpayer is eligible for certification. For taxpayers approved to receive the credit, the energy, minerals and natural resources department shall issue a certificate of eligibility stating the amount of credit to which the taxpayer is entitled and the taxable year in which the credit may be claimed. The certificate of eligibility shall be numbered for identification and declare the date of issuance and the amount of the tax credit allowed.

          D. A taxpayer may claim the credit for the taxable year in which the taxpayer purchases and permanently installs a backup power generator. To receive the credit, the taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include a certification made pursuant to Subsection C of this section.

          E. That portion of a credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed shall be refunded to the taxpayer.

          F. Married individuals filing separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the credit that would have been claimed on a joint return.

          G. A taxpayer may be allocated the right to claim the credit in proportion to the taxpayer's ownership interest if the taxpayer owns an interest in a business entity that is taxed for federal income tax purposes as a partnership or limited liability company and that business entity has met all of the requirements to be eligible for the credit. The total credit claimed by all members of the partnership or limited liability company shall not exceed the maximum amount of the credit allowed pursuant to this section.

          H. A taxpayer allowed the credit shall report the amount of the credit to the department in a manner required by the department.

          I. The credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the total annual aggregate cost of the credit.

          J. As used in this section, "backup power generator" means a device that automatically provides temporary or permanent power when the main power source fails."