Representative Leo Ferrari presented House Bill 213, a bill to create a transferable, refundable tax credit to expand solar and battery installations on public K‑12 and postsecondary campuses by enabling third‑party ownership and power‑purchase agreements.

The sponsor and witness Rocky Backus told the committee the proposal leverages federal tax credits and private capital so the state’s share would cover a smaller portion of upfront costs while multiplying long‑term savings for schools. Backus said state, federal and private shares could be combined so the state would fund roughly 40% of project appraised value while federal tax credits and private providers would supply the rest; sponsors argued the model reduces the state’s per‑school capital contribution compared with conventional school facility grants.

Witnesses pointed to potential annual savings: Backus presented district‑level examples showing annual energy bill reductions that could free funds for staffing or school programs. Supporters such as Sierra Club and New Energy Economy highlighted emergency‑shelter benefits from battery storage, improved resiliency and job creation for local contractors.

Committee members asked about anti‑donation concerns and whether out‑of‑state providers could participate. Backus said the contracted provider would have to file New Mexico taxes on income derived from New Mexico school projects; the bill’s structure was intended to avoid donation doctrine issues by making the PPA a commercial contract with a tax credit tied to the owner/provider. The sponsor noted the measure had a cap (the committee substitute sets illustrative limits in committee) and urged urgency because federal investment tax credit safe harbors can be locked in for contracts executed and 5% invested by specified dates.

After discussion, the committee voted to advance the bill (due pass) on a recorded committee vote of 5–4. Sponsors said they would work with schools, PSFA and providers on contracting templates and implementation details.

Ending: The bill advances with sponsor commitments to consult finance officers and the Public School Facilities Authority about implementation details and to produce model PPA language for districts.