Bill > HB163

This bill establishes a new "home energy and water efficiency income tax credit" for New Mexico taxpayers, allowing them to claim a one-time credit against their income tax liability for making improvements to the energy or indoor water use efficiency of their primary residence, which is defined as their main home where they live most of the year. To qualify, taxpayers must have their primary residence inspected by a qualified assessor approved by the energy, minerals and natural resources department before and after improvements are made, and these improvements must increase efficiency by at least fifteen percent. The credit amount varies based on the percentage of energy efficiency improvement, ranging from $1,200 for a 15-25% increase to $4,000 for a 35% or more increase, and separate, smaller credits are available for indoor water use efficiency improvements, ranging from $500 to $1,000. The bill also sets annual aggregate limits on the total amount of credits that can be claimed, with higher limits for later years, and any unused credit amount can be refunded to the taxpayer. The energy, minerals and natural resources department will establish rules for certifying these efficiency improvements, and the taxation and revenue department will report annually on the credit's effectiveness. This credit is intended to encourage homeowners to make their residences more efficient and is applicable to taxable years beginning on or after January 1, 2016.