Bill > SB7

This bill establishes a new corporate income tax credit in New Mexico for the production and sale of hydrogen fuel, intended to encourage the use of hydrogen as a renewable energy source. To qualify for this credit, businesses must own a "qualified hydrogen fuel or hydrogen resource generator," which means a facility that produces hydrogen using renewable energy sources like solar, wind, hydroelectric, geothermal, or plasma-derived methods, and they must hold title to this generator. The credit is available for hydrogen produced and sold before January 1, 2021, and is capped at one dollar per kilogram for the first four million kilograms produced annually, with a total state-wide annual cap of four million dollars in tax credits. Businesses must apply for eligibility with the Energy, Minerals and Natural Resources Department and then claim the credit on their corporate income tax return within five years of the generator starting production, with any unused credit able to be carried forward for up to five years. The bill also mandates annual reporting by the department to a legislative committee on the credit's usage, impact on job creation, and overall effectiveness.