History of New Mexico Solar Tax Credits
Established in 2006, the New Mexico Solar Market Development Tax Credit, or Solar Tax Credit (STC), allows solar customers to claim 10% (up to $9000) of their solar systems cost as a a tax credit directly against their taxable liability; Up to $3 million in state government tax credit support is available annually. These credits are on a first-come first-serve bases. In addition to the STC, the federal government will pay 30% in a federal tax credits for a solar system, a total of 40% in tax credits for New Mexico solar investments. These incentives have been wildly successful, with the New Mexico Solar Market Development Tax Credit reserving the full $3 million for the 2015 year.
New Mexico Solar Tax Credit Comes to an End in 2016
Several bills aimed at expanding New Mexico’s solar-energy footprint didn’t survive the recently adjourned session of the state Legislature in 2016; this means the New Mexico solar tax credit will sunset in 2016. According to the New Mexico Energy, Mineral, and Natural Resources Department, the full $3 million allotment is expected to be fulfilled by August of 2016. Because it takes approximately 3 months from beginning to end for solar projects, the very latest you would want to start the solar project is May-June to ensure your place to receive these solar tax credits.
What You'll Need to Apply
You've got your solar system installed. Check! Now what? In order to prevent any delays in your solar tax credit application, it's important to make sure you have the right documentation in order. (If you went solar with Osceola Energy, most of the documentation will be filled out for you, simply requiring a signature).
Property Tax Bill or Notice of Valuation (not provided by solar installer)
Invoices from the Solar Installation
Solar System Design or Schematics (One/Three-line diagram)
At least 1 photo of the system
Utility Interconnection Agreement
Don't Wait to File!
As stated earlier, the New Mexico Solar Tax Credit is a finite amount of money reserved for solar installations. Because it is on a first-come first-serve basis, the sooner your get your application in, the sooner you can ensure your spot to receive your tax credit. You don't have to wait until tax season to file. So mail your forms in as soon as you have them available.