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SB 279: SUSTAINABLE BUILDING TAX CREDITS

An Act Relating To Taxation; Increasing The Aggregate Amount Of Sustainable Building Tax Credits Pursuant To The Income Tax Act And The Corporate Income And Franchise Tax Act; Reducing The Amount Of Credit That May Be Claimed Per Square Foot For Sustainable Residential Buildings; Creating Separate Aggregate Limits Of Sustainable Building Tax Credits For Certain Sustainable Buildings; Creating A New Sustainable Building Tax Credit With Water Conservation Requirements Pursuant To The Income Tax Act And The Corporate Income And Franchise Tax Act.

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MILD SB 279
SUSTAINABLE BUILDING TAX CREDITS

Legislative URL:
SB 279 on nmlegis.gov
Emergency Clause:
No
Germane:
N/A
Location:
Signed
Action:
[3] SCONC/SCORC/SFC-SCONC [5] DP/a-SCORC [15] w/o rec-SFC [33] DNP-CS/DP - PASSED/S (35-5) [39] HWMC [43] DP [44] PASSED/H (37-10) SGND BY GOV (Apr. 10) Ch.130.
Issue(s):

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
SCONC Committee Report
SCORC Committee Report
SFC Committee Report
SFC Committee Substitute
Final Senate Vote
HWMC Committee Report
Final House Vote
Fiscal Impact Report
Final Version
Summary

This bill reduces the amount of credit that may be claimed per square foot for sustainable residential buildings; but it increases the aggregate amounts of sustainable building tax credits pursuant to the Income Tax Act and the Corporate Income and Franchise Tax Act. This means that while any one taxpayer may not be able to get as big a credit as under current law, overall more taxpayers should be able to claim the credit because of the increased aggregate.

 

If for any taxable year the Energy, Minerals and Natural Resources Department determines that applications for sustainable building tax credits for any type of sustainable building are less than the aggregate limit for that type of building for that year, EMNRD will add the unused amount to the aggregate limit of another type of building for which applications exceeded the aggregate limit.

 

The definition of “sustainable residential building” is modified with the added requirement that a sustainable residential building certified on or after July 1, 2015 must have indoor plumbing fixtures and water-using appliances that, on average, have flow rates equal to or lower than the flow rates required for certification by WaterSense (a program of the federal EPA); and, if landscape area is available at the front of the property, has at least one water line that may be connected to a drip irrigation system.

 

The bill also creates a “New Sustainable Building Tax Credit” that is available in taxable years beginning on or after January 1, 2017 for:

  • the construction in New Mexico of a sustainable building;
  • the renovation of an existing building in New Mexico into a sustainable building; or
  • the permanent installation of manufactured housing, regardless of where the housing is manufactured, that is a sustainable building.

 

Provisions for the New Sustainable Building Tax Credit are similar to those for the Sustainable Building Tax Credit, including identical aggregate limits and provisions for carryover of unused aggregate limits from one building type to another.

 

On February 10th the Senate Conservation Committee amended SB 279 to permit a single individual or corporation to receive credits for multiple projects in a single year.

 

A possible benefit of this bill might be increased focus on sustainable building, including enhanced water use efficiency in new and renovated building and manufactured housing.

 

The Senate Finance Committee Substitute for Senate Bill 279 does not include any of the original bill’s provisions regarding the current Sustainable Building Tax Credit. It creates a “New Sustainable Building Tax Credit” (similar to the Sustainable Building Tax Credit) that is available in taxable years beginning on or after January 1, 2017 for:

  • the construction in New Mexico of a sustainable building;
  • the renovation of an existing building in New Mexico into a sustainable building;
  • or the permanent installation of manufactured housing, regardless of where the housing is manufactured, that is a sustainable building.

 

A single individual or corporation may receive credits for multiple projects in a single year.

 

 

A possible benefit of this bill might be increased focus on sustainable building, including enhanced water use efficiency in new and renovated building and manufactured housing.