New Mexico Administrative Code
Title 3 - TAXATION
Chapter 3 - PERSONAL INCOME TAXES
Part 35 - 2021 SUSTAINABLE BUILDING TAX CREDIT
Section 3.3.35.7 - DEFINITIONS

A. "Annual cap" means the annual total amount of the 2021 sustainable building tax credit available to taxpayers owning sustainable buildings.

B. "Applicant" means a taxpayer who owns a sustainable residential or commercial building or manufactured housing or who has renovated an existing building or installed energy-conserving products in New Mexico and who desires to have the department issue a certificate of eligibility for a 2021 sustainable building tax credit.

C. "Application package" means the documents an applicant submits to the department to apply for a certificate of eligibility for a 2021 sustainable building tax credit.

D. "Build green New Mexico certification" means the verification by a department-approved verifier that a building project has met certain prerequisites and performance benchmarks or credits within each category of the build green New Mexico rating system resulting in the issuance of a certification document.

E. "Build green New Mexico rating system" means the certification standards adopted by build green New Mexico in November 2014, which includes water conservation standards.

F. "Building project" means a new construction of a sustainable commercial or residential building, installation of manufactured housing, renovation of an existing building or installation of energy conserving products to existing buildings.

G. "Building type" means the primary use of a building or section of a building as defined in target finder.

H. "Certificate of eligibility" means the document with a unique identifying number that specifies the specific physical address for the approved 2021 sustainable building tax credit, the rating system certification level awarded to the building, the amount of qualified occupied square footage, a calculation of the maximum amount of the 2021 sustainable building tax credit for which the owner would be eligible, the date of issuance and the first taxable year the credit shall be claimed.

I. "Certification level" means one of the following:

J. "Code official" means the officer or other designated authority charged with the administration and enforcement of the building codes.

K. "Department" means the energy, minerals and natural resources department.

L. "Division director" means the director of the department's energy conservation and management division.

M. "Insulation" is a material that contains properties to significantly control heat flow caused by radiation, convection and conduction. It is essential for controlling heat gain and loss through the building enclosure. Insulation is rated by R-value, the material's resistance to heat flow.

N. "Install" or "installation" means the direct work of placing an energy conservation product into service to operate and reduce energy at the expected level for window, doors and insulation and contribute to electrification of commercial and residential buildings with energy star rated equipment.

O. "LEED certification" means the verification by the United States green building council, or a department-approved verifier, that a building project has met certain prerequisites and performance benchmarks or credits within the applicable LEED rating system resulting in the issuance of a certification document.

P. "LEED registration" means the notification to the United States green building council that a project is pursuing LEED certification.

Q. "Most current" means the most recent date of the latest approved edition of a standard LEED rating system or the most recent date of an approved energy code adopted by the construction industries division of the regulation and licensing department.

R. "O&M" means operation and maintenance.

S. "2021 sustainable building tax credit" for the purposes of 3.3.35 NMAC means the personal income tax credit the state of New Mexico issues to an applicant for a sustainable residential or commercial building, manufactured home, renovation of an existing building or installation of energy-conserving products.

T. "New solar market development income tax credit" means the personal income tax credit enacted in 2020 issued to a taxpayer for a solar energy system the department has certified.

U. "Notice of approval" means the work complies in all respects with the latest building codes and has been approved by the code official.

V. "Project completion" means notice of approval by code officials for construction or renovation projects. New buildings must be completed after January 1, 2022. Renovation of existing buildings or installation of energy-conserving products must be completed after January 1, 2021.

W. "Rating system" means the LEED rating systems previously defined, the build green New Mexico rating system or the energy star program for manufactured housing.

X. "RESNET" means the residential energy services network, an industry not-for-profit membership corporation and national standards-making body for building energy efficiency rating systems.

Y. "Sustainable affordable buildings" means housing that serves the needs of low-income persons with an annual household adjusted gross income equal to or less than two hundred percent of the federal poverty level guidelines published by the United States department of health and human services.

Z. "Target finder" means the web-based program developed by the United States environmental protection agency to establish an energy goal in kilo british thermal units per square foot per year for predetermined building types.

AA. "Taxable year" means the calendar year or fiscal year upon the basis of which the net income is computed under the Income Tax Act, 7-2-1 et seq. NMSA 1978.

BB. "Taxpayer" means any individual subject to the tax imposed by the Income Tax Act, 7-2-1 et seq. NMSA 1978.

CC. "Taxpayer identification number" means the taxpayer's nine-digit social security number or employer identification number provided by a business enterprise.

DD. "Verifier" means an entity the department approves to provide certifications under the build green New Mexico or LEED rating systems.