Rep. Wirth’s Efficient Energy Buildings Legislation Unanimously Passes House

From the Democratic Leadership of the NM House:
Santa Fe, NM – The House passed legislation introduced by Rep. Peter Wirth (D-Santa Fe) that would provide tax credits to residential and commercial construction businesses that build energy efficient and sustainable buildings. The tax credits in this bill would complement, extend, and expand the federal tax credits that encourage energy efficient building. It is a comprehensive effort to move New Mexico toward energy independence and reduce our greenhouse gas emissions. HB 534a, Sustainable Building Tax Credit, passed the House with a vote of 62-0. The bill goes next to the Senate Finance Committee.

Rep. Wirth said, “With almost half of greenhouse gases coming from buildings, it makes sense to work hand in hand with contractors and homeowners to encourage ‘green’ buildings as a critical step to reduce global warming.” 

HB 534a allows a new credit under both the Income Tax Act and the Corporate Income and Franchise Act for the construction or renovation of a building. The new income tax credit must follow guidelines established by the US Green Building Council, Homebuilders of NM, or the Environmental Protection Agency for manufactured housing. The guidelines would have different levels of compliance with the tax credit scaled accordingly.

Under the bill, an owner of a ‘green’ building being constructed or renovated would apply to the Energy, Minerals and Natural Resources Department (EMNRD) to validate the tax credit. EMNRD would issue a certificate that could be transferred through sale, exchange or other means to another taxpayer. The taxpayer holding the certificate could claim the credit against tax liability over four years in 25 percent increments if the credit amount exceeded $25,000. If the credit value is less than $25,000, the taxpayer could claim all of it in the taxable year the certificate was issued. If the credit exceeds liability in either case, the taxpayer could carry the credit forward for up to seven years.

The credit could be used for the construction or renovation of either commercial or residential buildings. EMNRD could only issue an aggregate of $10 million in credits per year, $5 million for commercial buildings and $5 million for residential buildings.