SB 280: WATER HARVESTING INCOME TAX CREDIT

An Act Relating To Taxation; Creating The Water Harvesting Income Tax Credit.

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MILD SB 280
WATER HARVESTING INCOME TAX CREDIT

Legislative URL:

SB 280 on nmlegis.gov

Emergency Clause:

No

Germane:

N/A

Location:

SCORC

Action:

[3] SCONC/SCORC/SFC-SCONC [5] DP-SCORC API.

Hearing:

Saturday , March 7 , 2015 - 2:00 p.m. or 1/2 hr. after session - Room 311

Issue(s):

Water Quality & Supply

Related Legislators

Bill Sponsor:

Peter Wirth

Related Documents

Downloads:

Introduced
SCONC Committee Report
Fiscal Impact Report

Summary

This bill creates a “water harvesting income tax credit” for taxpayers who purchase and install a certified water harvesting system after January 1, 2015 and before December 31, 2025 in a residence or business in New Mexico. The credit will be for an amount up to 20% of the purchase and installation costs of the system but no more than $5,000. The Regulation and Licensing Department must certify the system for it to qualify for the tax credit.

The measure defines a “water harvesting system” as a “system that is designed to provide for the collection of rainwater or snowmelt from the rooftop of a building and is capable of storing the rainwater or snowmelt for future use.” The purpose of the credit is to provide an incentive for homeowners and businesses to use harvested water for future use.

The Taxation and Revenue Department (TRD) may allow a maximum annual aggregate of $2,000,000 in water harvesting income tax credits per year, TRD must compile an annual report on the water harvesting income tax credit detailing the number of taxpayers approved for the credit, the aggregate amount of credits approved and any other information necessary to evaluate the effectiveness of the credit. Beginning in 2019 and every five years thereafter, TRD must also prepare an analysis of the effectiveness and cost of the credit.

This bill may be a positive step towards encouraging taxpayers to purchase and install water harvesting systems and thus help to address New Mexico’s water shortage. One question might be whether the credit is enough to provide the needed incentive. Another might be whether the cost of these kinds of improvements and the amount of the credit are feasible for lower- and mid-level income households