Solar Market Development Tax Credit (New Mexico)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place New Mexico

Name Solar Market Development Tax Credit
Incentive Type Personal Tax Credit
Applicable Sector Commercial, Residential, Agricultural
Eligible Technologies Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Photovoltaics
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 10% of purchase and installation costs

Carryover Provisions Maximum 10-year carryover


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.
Start Date 2009-01-01
Expiration Date 2016-12-31






Maximum Incentive 9,000




Program Budget $3 million annually for PV, $2 million annually for solar thermal





Program Administrator New Mexico Energy, Minerals and Natural Resources Department, Taxation and Revenue Department
Website http://www.emnrd.state.nm.us/ECMD/CleanEnergyTaxIncentives/SolarTaxCredit.html
Date added to DSIRE 2006-03-09
Last DSIRE Review 2014-08-05



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

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.


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. 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.

All relevant forms are available at the website listed above.


Incentive Contact

Contact Name Vincent Barrera
Department New Mexico Energy, Minerals and Natural Resources Department
Division Energy Conservation and Management Division




Phone (505) 476-3323


Email Vincent.Barrera@state.nm.us
Website http://www.emnrd.state.nm.us/ecmd/
Contact Name Public Information
Department Taxation and Revenue Department
Division Administrative Services Division - Joseph Montoya Bldg.
Address 1100 South St. Frances Dr
Address 2 PO Box 630
Place Santa Fe, New Mexico
Zip/Postal Code 87504-0630
Phone (505) 827-0369
Phone 2 (505) 827-0870


Website http://www.tax.state.nm.us/
     

Authorities (Please contact the if there are any file problems.)

Authority 1: NM Stat. § 7-2-18.14
Date Effective 2006-01-01
Date Enacted 2006-03-06
Expiration Date 2016-12-31

Authority 2: 3.3.28 NMAC (Solar System Certification Requirements)
Date Effective 2006-07-01



















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"