HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR
HOUSE BILL 177
50th legislature - STATE OF NEW MEXICO - second session, 2012
AN ACT
RELATING TO TAXATION; CREATING A ONE-TIME SHORT-TERM REFUNDABLE TAX CREDIT FOR PURCHASERS OF ELIGIBLE ENERGY EFFICIENT HOMES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] ENERGY EFFICIENT HOME INCOME TAX CREDIT.--
A. A taxpayer who files an individual New Mexico
income tax return, who is not a dependent of another taxpayer and who is the new owner of an eligible energy efficient home may claim and the department may allow a credit pursuant to this section. The credit provided by this section may be referred to as the "energy efficient home income tax credit".
B. The purpose of the energy efficient home income tax credit is to encourage the construction of new owner-occupied energy efficient residential dwellings and the purchase of foreclosed homes renovated to high energy efficiency standards.
C. The amount of the energy efficient home income tax credit that may be claimed shall be calculated based on the certification level achieved by the eligible energy efficient home, as indicated on the following chart:
Rating System Certification Level Tax Credit
HERS index of 60 or less, but more than 25 $4,000
HERS index of 25 or less, but more than 0 $6,000
HERS index of 0 or less $8,000.
D. For purposes of determining eligibility for the energy efficient home income tax credit for a taxpayer who has purchased a renovated foreclosed home, an index other than the HERS index may be used if the index is approved by United States department of energy authorized Bestest EX software; provided that the rating determined for the renovated foreclosed home indicates that the energy efficiency increase from the renovations are the following:
Rating System Certification Tax Credit
50% or more energy reduction, but less
than 75% energy reduction $4,000
75% or more energy reduction, but less
than 100% energy reduction $6,000
100% energy reduction $8,000.
E. A taxpayer who is a homeowner may apply for a certificate of eligibility for the energy efficient home income tax credit from the energy, minerals and natural resources department after the construction or renovation of the eligible energy efficient home is completed. A homeowner shall submit a certificate of occupancy at the time the homeowner applies for a certificate of eligibility. Applications shall be considered in the order received. If the energy, minerals and natural resources department determines that the homeowner meets the requirements of this subsection and that the home, with respect to which the tax credit application is made, meets the requirements of this section as an eligible energy efficient home, the energy, minerals and natural resources department may issue a dated certificate of eligibility to the homeowner, subject to the limitation in Subsection F of this section. The certificate shall include the rating system certification level awarded to the eligible energy efficient home and the amount of the energy efficient home income tax credit for which the homeowner is eligible. The energy, minerals and natural resources department may issue rules governing the procedure for administering the provisions of this subsection. All certificates of eligibility issued pursuant to this subsection shall be sequentially numbered, and an account of all certificates issued or destroyed shall be maintained by the energy, minerals and natural resources department. The taxation and revenue department shall audit the records of the energy efficient home income tax credit maintained by the energy, minerals and natural resources department on a periodic basis to ensure effective administration of the energy efficient home income tax credit and to ensure compliance with the Tax Administration Act and this section.
F. The energy, minerals and natural resources department shall not issue a certificate of eligibility if the total amount of energy efficient home income tax credits represented by certificates of eligibility issued by the energy, minerals and natural resources department pursuant to this section exceeds in any calendar year an aggregate amount of ten million dollars ($10,000,000).
G. To be eligible for the energy efficient home income tax credit, the homeowner shall provide to the taxation and revenue department a certificate of eligibility issued by the energy, minerals and natural resources department pursuant to this section and any other information the taxation and revenue department may require to determine the amount of the tax credit for which the homeowner is eligible.
H. A taxpayer who is the homeowner of an eligible energy efficient home may only claim the energy efficient home income tax credit provided in this section for the taxable year in which the eligible energy efficient home is purchased. A taxpayer shall apply for approval of the credit within one year following the end of the calendar year in which the eligible energy efficient home is purchased.
I. The tax credit provided for in this section shall first be deducted from the taxpayer's New Mexico income tax liability. If the tax credit exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer. The energy efficient home income tax credit shall not be transferred to another taxpayer.
J. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the energy efficient home income tax credit that would have been allowed on a joint return.
K. The taxation and revenue department shall annually report to the interim revenue stabilization and tax policy committee the aggregate amount of energy efficient home income tax credits allowed during the preceding taxable year, the number of taxpayers claiming that credit and any other information that the department determines is necessary to evaluate if the energy efficient home income tax credit is achieving the purpose for which it was enacted.
L. Acceptance of the energy efficient home income tax credit is authorization for the department to reveal to the legislature information from the tax return of the taxpayer deemed necessary to evaluate the effectiveness of that credit.
M. As used in this section:
(1) "Bestest EX software" means a software simulation tool that analyzes the energy use of an existing home, that produces energy audits and that has been approved by the United States department of energy for these purposes;
(2) "eligible energy efficient home" means an owner-occupied single family residential dwelling:
(a) for which construction or renovation begins on or after July 1, 2012 and on or before June 30, 2014;
(b) for which an energy efficient home income tax credit has not been previously claimed;
(c) that has a HERS 60 or better rating and is a purchased or custom-built home or a purchased foreclosed home that has been renovated; and
(d) that has been issued a certificate of occupancy;
(3) "HERS index" means the home energy rating system in which a "HERS" rating is a numerical rating between 0 and 100, with each integer value representing a corresponding percentage of energy usage compared to a standard reference building design that complies with the 2004 International Energy Conservation Code designated as HERS 100, as documented by a certified HERS rater or registered professional engineer using the simulated alternative performance path for compliance. An index value of HERS 0 means a home has on-site renewable energy sources that provide an amount of energy equal to or greater than the amount of energy used by that home; an index value of HERS 25 means a home has a seventy-five percent energy reduction below the 2004 International Conservation Code standard reference building design; and an index value of HERS 60 means a home has a forty percent energy reduction below the 2004 International Conservation Code standard reference building design; and
(4) "homeowner" means the purchaser, owner and occupant of an eligible energy efficient home, but does not include the subsequent purchaser of an eligible energy efficient home with respect to which an energy efficient home income tax credit has been previously claimed."
SECTION 2. APPLICABILITY.--The provisions of this act apply to:
A. taxable years beginning on or after January 1, 2012 but not after December 31, 2014; and
B. single family residential houses, the construction of which began on or after July 1, 2012 but not after July 1, 2014.
SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2012.
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