The Energy, Minerals and Natural Resources Department (EMNRD) has issued more than $10 million worth of tax credit certificates to New Mexico residents who installed solar energy systems in their homes in 2022. By state law, the agency is authorized to issue a total of $12 million in tax credits for the 2022 tax year.
“The Solar Market Development Tax Credit has proved extremely popular,” said Louise Martinez, director of EMNRD’s Energy Conservation and Management Division, which administers the program. “We are roughly $2 million shy of reaching our cap for the most recent tax year. So, we encourage anyone who installed a solar system in 2022, but has not yet applied for the tax credit, to submit their applications immediately.”
To be considered for a 2022 tax credit certificate, the system must have passed inspection between January 1, 2022, and December 31, 2022. Martinez also noted that the annual funding cap for 2021 has been reached, meaning EMNRD can no longer accept tax credit applications for that year.
The legislature has allocated an additional $12 million to fund tax credits for the 2023 tax year. Given the program’s popularity, EMNRD urges individuals who install solar systems in 2023 to submit a tax credit application immediately after a successful inspection rather than waiting for tax filing season. Applications are evaluated on a first-come, first-served basis for complete applications.
A dashboard that displays the current amount of tax credit funding that has been allocated for a given tax year is available here.
The Solar Market Development Tax Credit Program offers a 10% tax credit on solar system installation costs for qualified solar thermal and photovoltaic (PV) systems, up to a maximum of $6,000. Since its 2020 inception, program has spurred the addition of 63 MW of distributed solar generation to the state’s power grid.
“This program not only saves consumers money — both through the tax credit and electricity costs — it also reduces New Mexico’s carbon footprint, moving us closer to our climate goals,” Martinez said.
Details on the Solar Market Development Tax Credit — including instructions on how to complete and submit an application — are available on the EMNRD website.
News item from EMNRD