Committee clears bill to clarify property-tax valuation for energy storage

House Bill 309, which clarifies that energy storage property can be valued under New Mexico’s special valuation method for electric generating plants, received committee support and was passed out of the Energy, Environment & Natural Resources Committee.

Sponsor Representative Small said the amendment simply clarifies that storage is part of electric generation valuation and removes ambiguity for investors. Industry witnesses — including developers and trade groups — said aligning valuation approaches reduces uncertainty and will encourage investment in utility-scale, commercial, and residential storage projects. Bo Downing of the American Clean Power Association said the change brings state code into alignment with federal incentives and investor expectations. Samantha Williams of Jupiter Power cited recent grid events where battery storage provided resilience.

Tax experts on the record explained the special valuation method is cost-based (depreciated cost) and applies to generating plant property but excludes land, land rights and general building improvements. Committee members asked whether this method would cause faster reductions in assessed value than market or income approaches; witnesses said it depends on the comparative trajectories but that the special method provides consistency for storage assets treated as generation.