Bill > HB538

This bill establishes two new corporate income tax credits to incentivize industrial decarbonization in New Mexico, targeting facilities that significantly reduce carbon dioxide emissions. The first credit, the Industrial Decarbonization Production Corporate Income Tax Credit, provides up to $85 per metric ton of carbon dioxide equivalent emissions reduced below an industrial benchmark, with a maximum annual credit of $10-15 million per facility, depending on job creation and investment potential. To qualify, businesses must demonstrate at least a 40% reduction in emissions through a life cycle assessment and obtain certification from the New Mexico Department of Environment. The second credit, the Industrial Decarbonization Investment Corporate Income Tax Credit, offers up to 10% of qualified expenditures (or $5-7.5 million) for investments in equipment that reduces emissions, applicable to facilities producing materials like concrete, steel, hydrogen, or critical minerals. Both credits are available for taxable years before 2031, with annual statewide certification limits starting at $30 million in 2026 and increasing to $100 million in subsequent years. Credits can be carried forward for three years, transferred between taxpayers, and are not refundable. The bill includes provisions for application, reporting, and will automatically repeal on January 1, 2033.

Agriculture and Natural Resources

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=538&year=25