Bill > HB454

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. Taxpayers who own a "qualified hydrogen fuel or hydrogen resource generator" – meaning a system that produces hydrogen using renewable energy sources like solar, wind, or geothermal power – can claim this credit. The credit is calculated based on the cost of generating the hydrogen, with a cap of one dollar per kilogram for the first four million kilograms produced and sold annually. There's an overall annual limit of four million dollars for all credits issued, and applications are processed on a first-come, first-served basis. To qualify, businesses must obtain a certificate of eligibility from the energy, minerals and natural resources department, and the credit must be claimed within five years of the generator starting production. This credit cannot be claimed in addition to another existing renewable energy production tax credit, and any unused credit can be carried forward for up to five years. The bill also mandates annual reporting by the department to legislative committees on the credit's usage, impact, and effectiveness, with a comprehensive review every three years. This provision applies to tax years beginning on or after January 1, 2015.