Panel approves bill decoupling state advanced-energy credit from federal law and adding fusion
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Summary
A House committee backed HB154 to remove dependence on IRS definitions for New Mexico's advanced energy equipment tax credit and to add fusion machines to the state definition; sponsors said the change preserves the existing $25 million annual cap and aims to attract manufacturing investment.
A House committee voted to advance House Bill 154 after sponsors and state economic officials said the bill would give New Mexico 'certainty' in its advanced-energy manufacturing incentive by replacing a federal tether with a state definition and by explicitly adding fusion machines.
Representative Hernandez presented HB154, saying the current state credit is linked to federal IRS definitions (noted in the bill as "section 45x"), which change over time and can make the state incentive unstable. Rob Black, Cabinet Secretary for Economic Development, told the committee the bill removes that dependency and keeps the existing structure and caps intact. "This bill is not creating a new tax credit and it is not increasing the credit rate or the caps," he said.
Alex Greenberg, the governor's economic policy adviser, said the $25 million yearly aggregate cap remains unchanged and that the credit has had no utilization since it passed in 2024: "so far this tax has been un unutilized entirely the last 2 years since we passed in 2024." Supporters from business and industry'including the Greater Albuquerque Chamber of Commerce, Liberty Fusion (a Santa Fe-based fusion company), CNM Community College, PNM and Molten Salt Solutions'testified that clearer state definitions and inclusion of fusion could attract large, high-tech projects and jobs.
Committee members asked whether hydrogen, geothermal equipment, or small modular reactors are included; presenters replied that the bill currently does not include hydrogen or geothermal manufacturing equipment and that small modular reactors are not in the federal definition either, though the bill'because it is decoupled'could be amended later to add other technologies.
Representative Gallegos moved a do-pass. A roll-call recorded 12 yes and 0 no; the committee approved HB154 and sent it on for further legislative consideration.