Bill > HB319

This bill establishes new income tax credits for individuals and corporations in New Mexico for purchasing and installing qualified clean-burning motor vehicle fuel equipment devices, such as those that dispense compressed, liquefied, or renewable natural gas, between the end of 2017 and the beginning of 2024. The purpose of these credits is to improve air quality, reduce reliance on foreign oil, and promote the use of natural gas and other cleaner fuels within the state. The credit amount is a percentage of the purchase and installation cost, decreasing each year from 50% in 2018 to 25% in 2023, with a maximum credit of $500,000 per device and location. To claim the credit, taxpayers must obtain a certificate of eligibility from the energy, minerals and natural resources department, which will issue these certificates in the order applications are received, with an annual cap of $5 million in total certificates issued. Unused credit amounts can be carried forward for up to five years, and the bill also includes provisions for married individuals filing separately and for owners of pass-through business entities. The taxation and revenue department will report annually on the effectiveness and cost of these credits.