QUALIFIED MICROGRID TAX CREDIT

SB 418 creates a tax credit for New Mexico taxpayers who build qualified microgrids in underserved communities (defined as areas with median income near the federal poverty level) by January 1, 2031. The credit covers up to $100,000 of construction and installation costs for microgrids that must generate at least 20 megawatts and operate independently from the main grid. Taxpayers must apply for certification within one year of installation, and the credit can be used against income tax liability, with unused portions carried forward for up to 20 years or transferred to another taxpayer. This policy directly affects businesses and organizations building microgrids in designated underserved areas to support localized energy resilience.