New Mexico Solar Tax Credits
While the 30% Federal Tax Credit for solar is set to begin ramping down at the end of 2019, a new bill (SB518) introduced into the 2019 legislative session would reintroduce the New Mexico Solar Tax Credit. New Mexico's previous solar tax credit system expired in 2016.
The current 30% solar tax credit will apply to any solar installation completed by December 31, 2019. After that, the incentive will diminish to 26% in 2020 and 22% in 2021. After 2021, residential solar tax credits will end.
The current solar bill, officially titled the "New Solar Market Development Tax Credit" SB518, is sponsored by Senator Mimi Stewart. Similar to the previous New Mexico Solar Tax Credit that had expired in 2016, SB518 would provide an income tax credit for 10 percent of solar installations costs at a home or business, for 10 years until January 2029. Completed applications for the credit will be considered in the order received by the department and credits would be capped at $6000 per system with a $10-million maximum allowance for the program - expected to be fully utilized if the bill passes. Based on the current language in the New Solar Market Development Tax Credit, "the provisions of this act apply to taxable years beginning on or after January 1, 2019", it appears as though the credits would be retroactive to anyone looking to install solar in 2019 - Don't wait, as 2019 will be the only year to take advantage of both the Federal AND State tax credit (if passed).
Prior Reintroduction Attempts
Past attempts to reintroduce bills that would give tax relief to solar users have been met with bipartisan support, passing the house and senate, only to be pocket vetoed by then-governor Susana Martinez. Supporters say the credit would have bolstered New Mexico's solar industry.
With a newly elected governor Michelle Lujan-Grisham, who has been vocal about the positive economic and environmental impact the New Mexico solar industry will have, it is likely that she will pass the bill if it comes across her desk.
Contact us today to learn everything about incentives for solar and whether you qualify.