HB 274 ADVANCED ENERGY EQUIPMENT TAX CREDIT

Rep Linda Serrato

Actions: [4] HENRC/HTRC-HENRC [9] DP-HTRC

Scheduled: Not Scheduled

 House Bill 274 (HB 274) creates the Advanced Energy Equipment Income and Corporate Income Tax credits. HB 274 contains a repeal date. 

 House Bill 274 (HB 274) creates the Advanced Energy Equipment Income Tax Credit and the Advanced Energy Equipment Corporate Income Tax Credit (credits) for qualified expenditures by advanced energy product manufacturing facilities located in the state that produce eligible components, i.e., solar, wind, inverter, batteries, and applicable critical minerals. Qualified expenditures are for the purchase of manufacturing equipment dedicated to manufacturing advanced energy products. The components are the same as those that are eligible for a federal tax credit under Section 45X of the Internal Revenue Code.

The amount of credit is the lesser of 20% of the amount of expenditures or $25 million. 

Taxpayers must apply for preliminary certification of eligibility before purchases from the Energy, Minerals, and Natural Resources Department (EMNRD) in consultation with the Economic Development Department. Taxpayers may claim only one certificate per facility.  Within 12 months of production of qualifying products, taxpayers must apply for final certification from EMNRD. If any portion tax credit remains unused at the end of the taxpayer’s reporting period, the credit may be carried forward five years.

HB 274 has a delayed repeal date of January 1, 2034 for qualifying purchased made beginning January 1, 2025 through December 31, 2032. The bill applies to tax years beginning in 2025.