If you’re a follower of the New Mexico solar industry, you probably already know the New Mexico State Legislature just passed SB 29, which reinstates a tax credit for people wanting to install solar panels.
This new bill, officially titled the New Solar Market Development Income Tax Credit, is a replacement for the previous New Mexico solar tax credit, which was phased out in 2016. Since the previous tax credit ended, solar advocates have been pushing the New Mexico leadership to reinstitute the program or create a similar one to encourage people to embrace solar energy. And their requests have been listened to.
Also called SB 29, this New Mexico solar tax credit is available to anyone wanting to go solar. SB 29 covers 10% of the costs of a solar panel system for residential, business, or agricultural applications. The tax credit is capped at $6,000 per person, and has an annual limit of $8 million.
New Mexico Governor Michelle Lujan Grisham was in full support of the bill. “By reinstating the solar tax credit, we’re making sure New Mexicans have an easier path to installing solar on their homes and businesses,” she said in a statement following the bill’s passing. “This not only saves consumers money but reduces our carbon footprint, moving New Mexico closer to our absolutely essential climate goals. I applaud the Legislature for supporting this bill to expand renewable energy jobs in New Mexico.”
The passing of the New Mexico solar tax credit was applauded by advocates of solar energy both in and out of state. Sanders Moore, director at the Policy Solutions Insititute, said that tax credits such as SB 29 would provide needed support for the solar industry, and could incentivize as much as $80 million in economic activity for the state.
Andrea Luecke, executive director of the Solar Foundation, was similarly positive. “The solar industry has been one of America’s leading job creators over the past decade, as evidenced by our National Solar Jobs Census. In just 10 years, despite facing many challenges, solar has grown from a niche product to a mainstream energy source that provides a quarter of a million high-quality jobs.”
This New Mexico solar tax credit will last for 8 years, after which time the Legislation may institute another tax credit or create a similar system. In the meantime, people who want to install solar energy systems will have just one more incentive to go green.
If you’d like to learn more about installing New Mexico solar panels, simply contact us at Sunpro Solar. We offer turnkey solutions, so you can install solar panels without having to worry about a thing. Reach out today to schedule your free consultation!