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New Mexico

New Mexico

Incentives/Policies for Renewables & Efficiency

Printable Version
Solar Market Development Tax Credit   

Last DSIRE Review: 02/19/2013
Program Overview:
State: New Mexico
Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Photovoltaics, Solar Space Cooling
Applicable Sectors: Commercial, Residential, Agricultural
Amount:10% of purchase and installation costs
Maximum Incentive:$9,000
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.
Carryover Provisions:Maximum 10-year carryover
Program Budget:$3 million annually for PV, $2 million annually for solar thermal
Start Date:1/1/2009
Expiration Date:12/31/2016
Web Site: http://www.emnrd.state.nm.us/ECMD/CleanEnergyTaxIncentives/SolarT...
Authority 1:
Date Enacted:
Date Effective:
Expiration Date:
NM Stat. ยง 7-2-18.14
3/6/2006
1/1/2006
12/31/2016
Authority 2:
Date Effective:
3.3.28 NMAC (Solar System Certification Requirements)
7/1/2006
Summary:

New Mexico provides a 10% personal income tax credit (up to $9,000) for residents and businesses (non-corporate), including 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 ten taxable years until fully expended. Aggregate credit levels are capped annually at $2 million for solar thermal and $3 million for photovoltaic 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.

Background
In 2006 New Mexico established a 30% tax credit for solar technologies. The credit was originally designed to leverage and extend, not amplify, the federal solar income tax credits. Prior to the signing of the Energy Improvement and Extension Act of 2008 and the American Recover and Reinvestment Act of 2009, the federal investment tax credit (ITC) for residential solar systems was capped at $2,000 and set to expire at the end of 2008. New Mexico's Solar Market Development Tax Credit was written so the federal and state tax credits could not exceed 30% combined. Effectively, the state credit was designed to extend the federal individual tax credit past its $2,000 cap and 2008 deadline. When the caps on the federal ITC were lifted, the Solar Market Development Tax Credit could no longer be used. SB 257 of 2008 removed the language about the interaction with the ITC and changed it to a 10% tax credit.


 
Contact:
  Edward Trujillo
New Mexico Energy, Minerals and Natural Resources Department
Energy Conservation and Management Division
E-Mail: EdwardD.Trujillo@state.nm.us
Web Site: http://www.emnrd.state.nm.us/ecmd/
 
  Public Information
Taxation and Revenue Department
Administrative Services Division - Joseph Montoya Bldg.
1100 South St. Frances Dr
PO Box 630
Santa Fe, NM 87504-0630
Phone: (505) 827-0369
Phone 2: (505) 827-0870
Web Site: http://www.tax.state.nm.us/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.