Great news if you’re in New Mexico and are still debating solar panels for your home’s roof. The state of New Mexico extended its New Solar Market Development Tax Credit for 2020.
The 10% tax credit provides a value of up to $6,000 for solar systems. The law goes into effect officially on July 1, 2020 and it is also the first day that applications will be accepted by the ECMD (Energy Conservation and Management Division) office. If you buy your solar panels now you’ll be eligible for the tax credit when you file your taxes next year.
This is on top of other great solar incentives available to residents of New Mexico.
- Federal Solar Investment Tax Credit – A 26% federal tax credit that’s good for all solar systems purchased through the end of 2020. This renewable energy tax credit is available to residential homeowners in New Mexico and can significantly reduce the payments for your solar power investment. This means you can potentially receive up to a 36% tax credit when you combine the ITC and New Mexico state solar tax credit.
- Net Metering – On sunny days when you have a surplus of electricity, you can sell your solar electricity back to the power company. Then at night, you can buy electricity from the power company like you would normally. If you sell back more than you use that month, you’ll have a credit that moves forward to the next month. Several power companies in New Mexico offer net metering, including PNM and El Pas Electric Co. in Southern New Mexico.
- Solar Property Tax Deduction – Adding a solar system to your roof can raise the property value significantly, often tens of thousands of dollars. However, New Mexico homeowners are exempt from these increases. In other words, your property taxes won’t increase, but your home value will.
- Not to mention, the long, sunny days in New Mexico that are great for solar panels and homeowners that like savings.
There’s no need to debate any longer. If you’re in New Mexico, this is the year to get solar panels for your home.
If you have any questions about the New Mexico state solar tax credit you may contact Mark Gaiser at the Energy Conservation and Management Division at (505) 476-3318.
To learn more about increasing your home value, while cutting your electric bill significantly contact us today or give us a call at 505-336-5760. We can determine just how much you can save with solar panels in New Mexico.