HB 133: SOLAR ENERGY EQUIPMENT TAX VALUATION

An Act Relating To Taxation; Amending A Section Of Chapter 7, Article 36 Nmsa 1978 To Add Definitions; Providing For Valuation Of Solar Generation Equipment That Is Subject To Property Taxation And That Is Used For The Generation, Transmission Or Distribution Of Electric Power Or Energy.

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MILD HB 133
SOLAR ENERGY EQUIPMENT TAX VALUATION

Legislative URL:

HB 133 on nmlegis.gov

Emergency Clause:

No

Germane:

N/A

Location:

HENRC

Action:

HPREF [5] HENRC/HTRC-HENRC API.

Issue(s):

Energy

Related Legislators

Bill Sponsor:

Jason Harper

Related Documents

Downloads:

Introduced
Fiscal Impact Report

Summary

This measure amends the section of the Tax Code that specifies how to value property used for the generation, transmission or distribution of electric power or energy for property tax purposes. Current law does not distinguish between traditional electric generation property and solar generation equipment. This bill makes that distinction. Although valuing the solar generation equipment follows the same formula as non-solar property in most ways, it differs by allowing the amount of the federal investment tax credit claimed (if any) by the owner for purchasing the solar generation equipment to be subtracted from the value. It also specifies that depreciation for solar generation equipment be calculated using a twenty-year useful life.

The bill defines “solar generation equipment” as “solar thermal energy collection, concentration and heat transfer and conversion equipment; solar tracking hardware and software; photovoltaic panels and inverters; support structures; posts, brackets and towers; turbines and associated electrical generating equipment used to generate electricity from solar thermal energy; and related equipment.”

One benefit of this measure might be that it may reduce the property tax value of solar generation equipment, thus potentially saving property taxes for the owner as compared to current law. That might encourage more development of solar generation resources.

Date of Summary:  1/22/2014

Outcome:

HB 133 died in the House Energy and Natural Resources Committee.

Updated 7/31/14