Solar Market Development Tax Credit

Program Solar Market Development Tax Credit
Category Financial Incentive
Implementing sector State
Last Update
State New Mexico
Administrator New Mexico Energy, Minerals and Natural Resources Department, Taxation and Revenue Department
Website http://www.emnrd.state.nm.us/ECMD/CleanEnergyTaxIncentives/SolarTaxCredit.html
Budget $3 million annually for PV, $2 million annually for solar thermal
Start Date
Technologies Solar Water Heat, Solar Photovoltaics
Sectors Residential

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.


 

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