Signed by Governor Michelle Lujan Grisham

Vote Smart's Synopsis:

Vote to pass a bill that establishes a solar market development income tax credit.

Highlights:

• Authorizes the Taxation and Revenue Department to allow a new solar market development income tax credit of 10 percent of the purchase and installation costs of a solar thermal or photovoltaic system (Sec. 1).

• Authorizes a taxpayer who is not a dependent and who, on or after March 1, 2020, purchases and installs a solar thermal system or a photovoltaic system in a residence, business, or agricultural enterprise in the state, to apply for a credit against the taxpayer’s liability imposed under the Income Tax Act, for taxable years prior to January 1, 2028 (Sec. 1).

• Prohibits the new solar market development tax credit from exceeding $6,000 per taxable year (Sec. 1).

• Requires a taxpayer to apply for certification of eligibility for the new solar market development income tax credit from the Energy, Minerals and Natural Resources Department, and the aggregate amount of credits that may be certified as eligible in any calendar year is $8 million (Sec. 1).

• Defines “photovoltaic system” as an energy system that collects or absorbs sunlight for conversion into electricity (Sec. 1).

• Defines “solar thermal system” as an energy system that collects or absorbs solar energy for conversion into heat for the purposes of space heating, space cooling, or water heating (Sec. 1).

• Specifies that the purpose of the new solar market development income tax credit is to encourage the installation of solar thermal and photovoltaic systems in residences, businesses, and agricultural enterprises (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes a solar market development income tax credit.

Highlights:

• Authorizes the Taxation and Revenue Department to allow a new solar market development income tax credit of 10 percent of the purchase and installation costs of a solar thermal or photovoltaic system (Sec. 1).

• Authorizes a taxpayer who is not a dependent and who, on or after March 1, 2020, purchases and installs a solar thermal system or a photovoltaic system in a residence, business, or agricultural enterprise in the state, to apply for a credit against the taxpayer’s liability imposed under the Income Tax Act, for taxable years prior to January 1, 2028 (Sec. 1).

• Prohibits the new solar market development tax credit from exceeding $6,000 per taxable year (Sec. 1).

• Requires a taxpayer to apply for certification of eligibility for the new solar market development income tax credit from the Energy, Minerals and Natural Resources Department, and the aggregate amount of credits that may be certified as eligible in any calendar year is $8 million (Sec. 1).

• Defines “photovoltaic system” as an energy system that collects or absorbs sunlight for conversion into electricity (Sec. 1).

• Defines “solar thermal system” as an energy system that collects or absorbs solar energy for conversion into heat for the purposes of space heating, space cooling, or water heating (Sec. 1).

• Specifies that the purpose of the new solar market development income tax credit is to encourage the installation of solar thermal and photovoltaic systems in residences, businesses, and agricultural enterprises (Sec. 1).

Full Bill Text