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Applications open for supplemental solar tax credits
Former New Mexico Solar Group employees install additional panels to an existing solar system on an Albuquerque home in July 2023.
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Hundreds of people missed out on solar tax credits in recent years because the state ran out of money.
They now have a chance to apply for those tax credits again.
Last week, the New Mexico Energy, Minerals and Natural Resources Department announced it’s accepting applications for the supplemental Solar Market Development Tax Credit program.
The supplemental program is for anyone who was denied a solar tax credit through the regular program from 2020 to 2023 because the state ran out of funding.
Now, there’s $20 million available specifically to those who missed out. Lawmakers approved the appropriation earlier this year during the regular legislative session.
“On behalf of the New Mexico taxpayers who missed out on this tax credit, through no fault of their own, we thank the Legislature and Gov. Michelle Lujan Grisham for creating this supplemental fund,” Rebecca “Puck” Stair, director of EMNRD’s Energy Conservation and Management Division, said in a statement.
The state tax credit program provides credit for up to 10% of the equipment, materials and labor costs of a solar energy system, with a $6,000 maximum credit, according to EMNRD.
Taxpayers who have installed solar systems in 2024 also may apply for the tax credit. EMNRD has approved more than $2 million in solar tax credits so far in tax year 2024, according to an online state dashboard.
The program’s annual cap is $30 million, which is larger than in past years because of legislative approval during the 2024 session.
EMNRD reports that New Mexicans who have received the solar tax credit have saved, on average, more than $1,600 per year in energy costs.
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The average system size is 7.9 kilowatts, according to EMNRD, which is about what the typical home solar system requires. However, businesses and agricultural enterprises can also apply for the solar tax credit.
The average credit amount approved is about $3,000, according to EMNRD.
Applications can be submitted online only, at wwwapps.emnrd.nm.gov/ECMD/NSMDSubmissions.
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