Solar Market Development Tax Credit
| Program Type | Tax Credit |
|---|---|
| Technologies | Photovoltaics, Solar Hot Water, Solar Space Heating, and Cooling and Solar Thermal |
| Amount | Limited to $9,000 or 10 percent of system installation and cost |
| Required Documentation | Solar System Certification Application Form and Solar System Installation Form |
| Official Web Site | http://www.emnrd.state.nm.us/ECMD/CleanEnergyTaxIncentives/solartaxcredit.htm |
New Mexico’s Solar Tax Credit is funded at $5 million a year and is available to home owners and non-corporate business owners. Eligible PV and other solar energy systems must be operational after Jan. 1 2009, to be eligible for the credit. Applicants are eligible to receive up to $9,000 or 10 percent of system costs. And they may apply for multiple incentives. For instance, someone installing a PV system and a solar thermal system could qualify for up to $18,000 in tax credits in a year. Applicants also are eligible for the 30 percent federal tax credit on a qualified system.
Since it was established in 2006, New Mexico said it has invested $13.8 million through the tax credit. The state reported that “$2.8 million in state solar credits was used to leverage $1.2 million in federal tax credits.” It added that the incentive has supported installation of “372 solar PV systems producing 986 kilowatts and 268 solar heating systems generating 20.5 million British Thermal Units (BTUs) per day.”
