BACKUP POWER GENERATION TAX CREDIT

HB 176 creates a tax credit covering 50% of the purchase and installation costs for New Mexico residents and businesses that permanently install backup power generators (devices that provide power during main grid failures). The credit is limited to $5 million total per calendar year, with applications processed in order of receipt until the cap is reached. It applies to taxable years beginning on or after January 1, 2025, and expires on January 1, 2035. Taxpayers must apply for certification through the state Energy, Minerals and Natural Resources Department, and any unused credit amount exceeding a taxpayer's liability will be refunded.