Note: The deadline for qualifying for this tax incentive was 12/31/2016. This summary is here for informational purposes only.
New Mexico provides a 10% personal income tax credit (up to $9,000) for individuals, sole proprietorship businesses (or one that is required or allowed to elect to file taxes using IRS Form 1040), and agricultural enterprises who purchase and install certified photovoltaic (PV) and solar thermal systems. Eligible systems include grid-tied commercial PV systems, off-grid and grid-tied residential PV systems, and (active) solar hot water or hot air systems. To be eligible, systems must first be certified by the New Mexico Energy, Minerals and Natural Resources Department. Note that solar pool or hot tub heaters are not eligible for this tax credit. A taxpayer who installs a PV system and a solar thermal system may be eligible to receive a separate tax credit up to $9,000 for each system.
Credits may be carried forward for a maximum of 10 taxable years until fully expended. Aggregate credit levels are capped annually at $2,000,000 for solar thermal and $3,000,000 for PV systems.
These tax credits are set to expire December 31, 2016.
All relevant forms are available at the website listed above.
| Implementing Sector: | State |
| Category: | Financial Incentive |
| State: | New Mexico |
| Incentive Type: | Personal Tax Credit |
| Web Site: | http://www.emnrd.state.nm.us/ECMD/CleanEnergyTaxIncentives/SolarTaxCredit.html |
| Administrator: | New Mexico Energy, Minerals and Natural Resources Department, Taxation and Revenue Department |
| Start Date: | 01/01/2009 |
| Eligible Renewable/Other Technologies: |
|
| Incentive Amount: | 10% of purchase and installation costs |
| Maximum Incentive: | $9,000 |
| Eligible System Size: |
PV: Minimum 100 W (DC) Solar Thermal: Minimum collector area of 15 square feet Solar Water Heat: At least 50% of the total water heating load must be provided by solar energy |
| Equipment Requirements: | Must comply with requirements established in 3.3.28 NMAC (see below); includes requirement for solar water heaters to be SRCC-certified or in the certification process. |
| Carryover Provisions: | Maximum 10-year carryover |
| Technologies: | Solar Water Heat |
| Sectors: | Residential, Agricultural |
| Parameters: | The incentive is 10.00 %, The incentive has a minimum of $9000.00 |
| Technologies: | Solar Photovoltaics |
| Sectors: | Residential, Agricultural |
| Parameters: | The incentive is 10.00 %, The incentive has a minimum of $9000.00 |
| Name: | NM Stat. § 7-2-18.14 |
| Date Enacted: | 03/06/2006 |
| Effective Date: | 01/01/2006 |
| Expiration Date: | 12/31/2016 |
| Name: | 3.3.28 NMAC (Solar System Certification Requirements) |
| Effective Date: | 07/01/2006 |
| Name: | Mark Gaiser |
| Organization: | Energy Conservation and Management Division |
| Address: |
1220 South St. Francis Drive Santa Fe NM 87505 |
| Phone: | (505) 476-3318 |
| Email: | mark.gaiser@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.
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