Solar Market Development Tax Credit (New Mexico)
Last modified on February 12, 2015.
Financial Incentive Program
|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|
|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
|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.|
|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|
|Date added to DSIRE||2006-03-09|
|Last DSIRE Review||2014-08-05|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
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.
|Contact Name||Vincent Barrera|
|Department||New Mexico Energy, Minerals and Natural Resources Department|
|Division||Energy Conservation and Management Division|
|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|
|Phone 2||(505) 827-0870|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||NM Stat. § 7-2-18.14|
|Authority 2:||3.3.28 NMAC (Solar System Certification Requirements)|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.