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New Proposed Tax Credit for New Mexico Solar Panels

While some in the renewable energy industries are concerned about the lack of support from the federal government, local and state governments are getting more involved than ever. For example- the proposed New Mexico solar tax credit.

With the massive amounts of sunlight the state of New Mexico gets, it’s no surprise that solar panels have been so well incentivized there. At one point, the New Mexico solar tax credit was available for 10% of the cost of the solar panel system. Like the federal solar tax credit, this helped home and business owners make the switch to solar by making it more affordable. The New Mexico solar tax credit was originally instituted in 2006, and came to an end in 2016. However, with the federal solar tax credit starting to wind down, another New Mexico solar tax credit program is being proposed.

This New Mexico solar tax credit, like the original one, would last for 10 years- from 2019, to 2029. However, this tax credit would not exceed $6,000 per solar panel system, and the New Mexico state government would only be allowed to fund $10 million each year for this new tax credit. Furthermore, only solar panel systems certified by the state would be eligible for this program. However, once approved, the tax credit could be rolled over a maximum of five years for owners with small annual tax liabilities. Residences, businesses, and farms would all be eligible for the New Mexico solar tax credit. The guidelines for certification would be instituted by the New Mexico Energy, Minerals and Natural Resources Department.

This program, which was proposed by State Senator Mimi Stewart, was also supported by New Mexico Governor Michelle Lujan Grisham. “In a state that ranks second for solar potential nationwide,” said Lujan Grisham, “it’s crucial that New Mexicans have an easier path to installing solar on their own homes and businesses.”

Attempts to revive the New Mexico tax credit on solar panels have been ongoing since it first ended in 2016. Hopefully with this newest effort, it will get its second wind, and New Mexicans can add this incentive to their list of reasons to make the switch to solar.

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