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.
| 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 |
| Start Date: | |
| Eligible Renewable/Other Technologies: |
|
| 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 |
| Technologies: | Solar Photovoltaics |
| Sectors: | Commercial, Industrial, Residential, Agricultural, Multifamily Residential, Low Income Residential |
| Parameters: | The incentive has a minimum of $6000.00, The incentive is 10.00 % of cost, The system has a maximum of 100.00 W |
| Technologies: | Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat |
| Sectors: | Commercial, Industrial, Residential, Agricultural, Multifamily Residential, Low Income Residential |
| Parameters: | The system has a maximum of 15.00 Square Feet, The incentive is 10.00 % of cost, The incentive has a minimum of $6000.00 |
| Name: | N.M. Stat. § 7-2-18.31 |
| Name: | 3.3.14 NMAC |
| Name: | Tax Credits - NM EMNRD |
| Organization: | New Mexico Energy, Minerals, and Natural Reso |
| Address: |
1220 South St. Francis Drive Santa Fe NM 87505 |
| Email: | emnrd.taxcredits@state.nm.us |
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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