New Solar Market Development Tax Credit

Program Overview

Implementing Sector State
Category Financial Incentive
State New Mexico
Incentive Type Personal Tax Credit
Web Site https://www.emnrd.nm.gov/ecmd/tax-incentives/solar-market-development-tax-credit-smdtc/
Administrator New Mexico Energy, Minerals and Natural Resources Department, New Mexico Taxation and Revenue Department
Budget $12 million annually
Start Date 03/01/2020
Expiration Date 01/01/2032
Eligible Renewable/Other Technologies Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics
Applicable Sectors Commercial, Industrial, Residential, Agricultural, Multifamily Residential, Low Income Residential
Incentive Amount 10% of the purchase and installation costs
Maximum Incentive $6,000 per taxpayer per year
Eligible System Size PV: at least 100 W Thermal: at least 15 square feet Residential and Commercial Solar Water Heat: maximum size of 50% of the total domestic water heating load provided by solar energy
Equipment Requirements Must be certified by the EMNRD
Carryover Provisions Credits that exceed a taxpayer's tax obligations will be refunded to the taxpayer that year

Summary

New Mexico provides a 10% personal income tax credit (up to $6,000) for taxpayers that own a residence, business, or agricultural enterprise who purchase and install certified photovoltaic (PV) and solar thermal systems on their property. Eligible systems include grid-tied commercial and industrial PV systems, off-grid and grid-tied residential PV systems, active solar thermal systems, and systems with or without storage. To be eligible, systems must first be certified by the New Mexico Energy, Minerals and Natural Resources Department. The taxpayer must then apply for the tax credit with the New Mexico Taxation and Revenue Department within 12 months of installation. Note that solar pool or hot tub heaters and passive solar heating are not eligible for this tax credit.

If the credit exceeds a taxpayer’s tax obligation, the taxpayer will receive the excess as a tax refund that year. Aggregate credit levels are capped annually at $12,000,000. These tax credits are set to expire December 31, 2032.

All relevant forms and eligibility requirements are available on the program website listed above.

Authorities

Name N.M. Stat. § 7-2-18.31
Name 3.3.14 NMAC

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