Bill > SB418

This bill establishes a new framework for qualified microgrids in New Mexico, creating both regulatory provisions for self-sourced power generation and a tax credit incentive for microgrid development. The bill defines a "qualified microgrid" as an electrical system with a microgrid controller, capable of generating at least 20 megawatts and operating independently from the main electrical grid. Specifically, the bill allows persons and entities to receive electricity through a qualified microgrid that can also connect to public utilities, provided they have an electric service agreement. A key provision creates a tax credit for taxpayers who construct and install a qualified microgrid in an "underserved community" (defined as an area with median income at or near the federal poverty level) before January 1, 2031. The tax credit is equal to the construction and installation costs, up to $100,000 per microgrid, and can be carried forward for up to 20 consecutive tax years. Taxpayers must apply for certification from the Energy, Minerals and Natural Resources Department within 12 months of installation, and the credit can be sold or transferred to other taxpayers. The bill aims to promote energy resilience and economic development in lower-income areas by providing financial incentives for microgrid infrastructure, with the tax credit provisions becoming applicable for taxable years beginning on or after January 1, 2025.

Agriculture and Natural Resources

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=418&year=25