HB 064: HOME ENERGY & WATER EFFICIENCY TAX CREDIT

An Act Relating To Taxation; Creating The Home Energy And Water Efficiency Income Tax Credit.

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MILD HB 064
HOME ENERGY & WATER EFFICIENCY TAX CREDIT

Legislative URL:

HB 064 on nmlegis.gov

Emergency Clause:

No

Germane:

N/A

Location:

HWMC

Action:

HPREF [3] HEENC/HWMC-HEENC [5] w/o rec-HWMC API.

Issue(s):

General Interest

Related Legislators

Bill Sponsor:

Carl Trujillo Peter Wirth

Related Documents

Downloads:

Introduced
HEENC Committee Report
Fiscal Impact Report

Summary

This bill would create the Home Energy and Water Efficiency Income Tax Credit, designed to increase the efficiency of energy and indoor water use of existing residences in the state.

Prior to January 1, 2022, a taxpayer who makes improvements to the energy or indoor water use efficiency of the taxpayer’s primary residence, as certified by a qualified assessor approved by EMNRD may be eligible for a one-time tax credit against the taxpayer’s income tax liability.

• “Improvements” means physical changes made to a taxpayer’s home that increase the energy and indoor water use efficiency of a taxpayer’s primary residence.
• “Primary residence” means the domicile where a person resides for most of the year, and, if the person is temporarily out of the state, the address where a person will return when the person returns to New Mexico or the address that a person uses for purposes of a driver’s license or passport.

A taxpayer cannot get both a Home Energy and Water Efficiency Income Tax Credit and a Solar Market Development Tax Credit pursuant to § 7-2-18.14 NMSA 1978 in the same taxable year.

The Home Energy and Water Efficiency Income Tax Credit may be allowed as follows:
• $1,200 if the energy efficiency of a taxpayer’s primary residence is improved by 15-25 percent
• $2,500 if the energy efficiency of a taxpayer’s primary residence is improved by 25-35 percent
• $4,000 if the energy efficiency of a taxpayer’s primary residence is improved by 35 percent or more
• $500 if the indoor water use efficiency of a taxpayer’s primary residence is improved by 15-25 percent
• $750 if the indoor water use efficiency of a taxpayer’s primary residence is improved by 25-35 percent
• $1,000 if the indoor water use efficiency of a taxpayer’s primary residence is improved by 35 percent or more

TRD may allow a maximum annual aggregate of $1,000,000 in home energy and water efficiency income tax credits per calendar year for credits claimed from January 1, 2016 through December 31, 2018, and $2,000,000 for credits claimed from January 1, 2019 through December 31, 2021.

The bill further details the basis for determining a taxpayer’s eligibility for the credit; the process required for inspection and EMNRD certification of the qualifying improvements; and application to TRD for the credit.

A benefit of this bill might be stimulation of energy and water efficiency improvements by homeowners with corresponding decreases in energy and water use.