Solar Energy Gross Receipts Tax Deduction

Program Overview

Implementing Sector State
Category Financial Incentive
State New Mexico
Incentive Type Sales Tax Incentive
Web Site https://www.tax.newmexico.gov/tax-professionals/tax-credits-overview-forms/
Administrator New Mexico Energy, Minerals and Natural Resources Department
Start Date 07/01/2007
Eligible Renewable/Other Technologies Solar - Passive, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Photovoltaics
Applicable Sectors Commercial, Construction, Residential, Installers/Contractors, Retail Supplier
Incentive Amount 100% of gross receipts from the sale and installation of solar energy systems, dark-colored water tanks, and non-vented trombe walls
Maximum Incentive None specified
Equipment Requirements Equipment necessary for the sale and installation of a solar energy system includes an essential machine, mechanism, or tool, or a component or fitting used directly and exclusively in the solar energy system, and includes the replacement of some part of the system or a similar change to the system that would qualify as an adjustment for federal income tax purposes as established under the applicable provisions of the Internal Revenue Code of 1986. Additionally, equipment is limited to components and systems related to the storage and collection of solar energy. A solar energy system does not include components or systems related to the uses of the energy.

Summary

New Mexico has a gross receipts tax structure for businesses instead of a sales tax. Businesses are taxed on the gross amount of their business receipts each year before expenses are deducted. Revenue generated by the sale and installation of solar systems used to provide space heat, hot water, or electricity to the property on which it is installed may be deducted from gross receipts before the gross receipts tax is calculated. Dark-colored water tanks exposed to sunlight, including all equipment necessary for the installation and operation of the water tank as a part of the overall water system of the property, as well as a non-vented trombe wall, including all equipment necessary for the installation and operation of the trombe wall, are also eligible for this tax deduction.

Authorities

Name N.M. Stat. § 7-9-112
Date Enacted 04/03/2007
Effective Date 07/01/2007
Name NMAC 3.2.247

Contact

Tax Credits – NM EMNRD
Organization:
New Mexico Energy, Minerals, and Natural Reso
Address:
1220 South St. Francis Drive
Santa Fe, NM 87505

 

E-Mail:
emnrd.taxcredits@state.nm.us