2015 Sustainable Building Tax Credit (Corporate)

December 08, 2021

Summary

Note: This program was replaced by the 2021 Sustainable Building Tax Credit.

S.B. 463, enacted in April 2007, established a personal tax credit and a corporate tax credit for sustainable buildings in New Mexico. The tax credits apply to both commercial and residential buildings. Commercial buildings which have been registered and certified by the U.S. Green Building Council at LEED Silver or higher for new construction (NC), existing buildings (EB), core and shell (CS), or commercial interiors (CI) are eligible for a tax credit. The amount of the credit varies according to the square footage of the building and the level of certification achieved, as indicated on the following chart:

Commercial Buildings

LEED Rating Level Occupied Sq. Footage Tax Credit/Sq. Ft.
LEED-NC Silver First 10,000 $3.50
  Next 40,000 $1.75
  Over 50,000 and up to 500,000 $0.70
LEED-NC Gold First 10,000 $4.75
  Next 40,000 $2.00
  Over 50,000 and up to 500,000 $1.00
LEED-NC Platinum First 10,000 $6.25
  Next 40,000 $3.25
  Over 50,000 and up to 500,000 $2.00
LEED-EB/CS Silver First 10,000 $2.50
  Next 40,000 $1.25
  Over 50,000 and up to 500,000 $0.50
LEED-EB/CS Gold First 10,000 $3.35
  Next 40,000 $1.40
  Over 50,000 and up to 500,000 $0.70
LEED-EB/CS Platinum First 10,000 $4.40
  Next 40,000 $2.30
  Over 50,000 and up to 500,000 $1.40
LEED-CI Silver First 10,000 $1.40
  Next 40,000 $0.70
  Over 50,000 and up to 500,000 $0.30
LEED-CI Gold First 10,000 $1.90
  Next 40,000 $0.80
  Over 50,000 and up to 500,000 $0.40
LEED-CI Platinum First 10,000 $2.50
  Next 40,000 $1.30
  Over 50,000 and up to 500,000 $0.80

Residential buildings certified as sustainable homes can also qualify for a tax credit. Eligible residential buildings include single-family homes and multi-family homes which are certified as either Build Green NM Silver or higher or LEED-H Silver or higher as well as Energy Star-certified manufactured homes. The amount of the credit varies according to the square footage of the building and the level of certification achieved, as indicated on the following chart:

Residential Buildings

Rating Level Occupied Sq. Footage Tax Credit/Sq. Ft.
LEED-H Silver or Build Green NM Silver First 2,000 $3.00
  +2,000$0
LEED-H Gold or Build Green NM Gold First 2,000 $4.50
    +2,000 $0
LEED-H Platinum or Build Green NM Emerald First 2,000 $6.50
    +2,000 $0
Energy Star Manufactured Home Up to 2,000 $3.00

Applying for the Tax Credit

To receive the tax credit, the building owner must obtain a certificate of eligibility from the Energy, Minerals and Natural Resources Department after the building project has been completed. Through 2016, the Department will only grant certificates in any given calendar year until the equivalent of $1,000,000 worth of certificates for commercial buildings and $4,000,000 worth of certificates for residential buildings have been awarded in that calendar year. Further, no more than $1,250,000 of the annual amount for residential buildings can be applied to manufactured housing. The cap is set at $1,250,000 per year for commercial buildings and $3,375,000 per year for residential buildings beginning in 2017. Multi-family residential buildings are classified as residential buildings for the purpose of this tax credit. However, if the aggregate limit for residential tax credits has been reached for the year, the Department may issue certificates of eligibility under the annual aggregate limit for commercial buildings to owners of multi-family dwelling units provided that aggregate limit has not been reached as well.

Payout Schedule and Carry Forward 

The taxpayer must then present their certificate of eligibility to the Taxation and Revenue Department to receive a document granting the Sustainable Building Tax Credit. If the total amount of a Sustainable Building Tax Credit is less than $100,000, a maximum of $25,000 can be applied to the taxpayer's income tax in that year and the next 3 years as needed depending on the amount of the credit. If the credit is more than $100,000, the taxpayer can claim the credit in increments of 25% in each of the 4 taxable years, including the year in which the credit is approved. If a taxpayer's tax liability is less than the amount of credit due, the excess credit may be carried forward for up to 7 years.

Transferability 

The tax credit is transferable for nonprofits. Although nonprofits are not taxed by the state, they can apply for the certificate of eligibility and sell the credit to an entity that does pay taxes. Additionally, people and entities who do not owe enough taxes to take full advantage of the tax credit also have the option of selling the tax credit.

Other Tax Credits

A solar thermal system or a photovoltaic system may not be used as a component of qualification for this tax credit if a tax credit has already been claimed for it under the Solar Market Development Tax Credit

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: New Mexico
Incentive Type: Corporate Tax Credit
Web Site: http://www.emnrd.state.nm.us/ECMD/CleanEnergyTaxIncentives/SBTC.html
Administrator: New Mexico Taxation & Revenue Department
Start Date: 1/1/2007
Eligible Renewable/Other Technologies:
  • Solar - Passive
  • Solar Water Heat
  • Solar Space Heat
  • Solar Photovoltaics
  • Wind (All)
  • Daylighting
  • Comprehensive Measures/Whole Building
  • Wind (Small)
Incentive Amount: Varies based on the square footage of the building and the certification level
Eligible System Size: Up to 500,000 sq ft
Carryover Provisions: Excess credits may be carried forward for up to 7 years

Incentives

This program has 1 incentives
Technologies:
Sectors: Commercial
Parameters: The incentive has a maximum of 1.40 $/square foot

Authorities

Name: N.M. Stat. § 7-2A-21
Date Enacted: 04/02/2007, subsequently amended
Effective Date: 01/01/2007
Expiration Date: 12/31/2016
Name: NMAC 3.4.16, et seq.
Name: N.M. Stat § 7-2-18.19
Date Enacted: 04/01/2013
Expiration Date: 12/31/2016
Name: S.B. 279
Date Enacted: 04/10/2015
Effective Date: 01/01/2017
Expiration Date: 12/31/2026

Contact

Name: Public Information - NM TRD
Organization: New Mexico Taxation & Revenue Department
Address: P.O. Box 630
Santa Fe NM 87504-0630
Phone: (505) 827-0369
Email: poffice@state.nm.us
Name: Ken Hughes
Organization: NM Energy, Minerals & Natural Resources
Address: 1220 South St. Francis Dr.
Santa Fe NM 87505
Phone: (505) 476-3320
Email: ken.hughes@state.nm.us
Name: Harold Trujillo
Organization: NM Energy, Minerals & Natural Resources
Address: 1220 South St. Francis Dr.
Santa Fe NM 87505
Phone: (505) 476-3372
Email: harold.trujillo@state.nm.us

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.