Bill would create new tax credits for renewable energy facilities
A Senate bill aims to make New Mexico a more attractive place to put renewable manufacturing facilities.
Sen. Benny Shendo (D-Jemez) is sponsoring the Advanced Equipment Income Tax Credit bill. It would create a new tax credit of up to 20%, or $25 million, for qualified manufacturing facilities related to solar and wind energy components.
Sen. Shendo says the Biden administration is trying to onshore a lot of renewable energy development.
“So this tax credit will allow companies to take advantage of that and we're trying to mirror the federal law with ours as well,” he said. “And so hopefully, this will help bring at least some of that manufacturing to New Mexico.”
The bill's fiscal impact report raises concerns about a new cost that is, “difficult to determine but likely significant.”
But the report also notes that the bill can contribute to Governor Michelle Luján Grisham’s 2019 executive order promoting renewable energy by offering financial incentives to businesses and industries to produce clean and sustainable products. It added that could then lead to reducing greenhouse gas emissions and fostering innovation.
The analysis identifies three companies that would qualify for the credit in the near future. Arcosa wind-tower production facility in Belen; Hota Industrial Manufacturing Company in Santa Teresa, and the Maxeon Solar Technologies’ solar cell production facility in Albuquerque.
The bill is currently at the Senate Tax, Business and Transportation committee and must still be heard in the Senate Judiciary Committee before going to the full Senate and then the House. The session ends at noon on February 15. If passed and signed by the governor, it would go in effect in January 2025.