SB29, The Solar Market Development Income Tax Credit, is being heard in the Senate Corporations Committee. It is sponsored by Sen. Mimi Stewart and Rep. Matthew McQueen, and supported by the Governor as one of her top priorities.
We urge you to call the Senate Corporations members (listed below) to demonstrate your support for the legislation. Please call and write with a personalized message.
New Mexico is the second sunniest state in the country. With more than 310 days of sunshine a year, we could produce more than 1,000 times our current energy demand with solar. Yet, we get approximately 5% of our electricity from solar energy, currently. Programs such as the residential tax credits helped solar energy grow in New Mexico in prior years.
- SB29 reinstates the residential, small commercial, and agricultural solar tax credit in New Mexico, which expired Dec. 31, 2016.
- The solar tax credit is 10% of the cost of a solar project and capped at $10 million per year for solar installed between January 1, 2020 - January 1, 2030.
- The credit is capped at $6,000 per project.
- Federal tax credit dropped at the beginning of 2020 from 30% to 26%. In 2021, the Federal Tax Credit decreases to 22% and expires at the end of 2021 for residential systems. It remains at 10% for commercial solar systems indefinitely.
Benefits of the New Mexico Solar Tax Credit
- Between 2008 and 2016, nearly 48 Megawatts (MW) of solar energy were installed by residential, commercial, and agricultural sectors in NM with the assistance of the solar tax credit.
- More than 7,700 New Mexican families took advantage of the solar tax credit from 2008 to 2016.
- The average sized solar system in New Mexico is about 6 kilowatts (kW) and costs between $20,000-$30,000. The tax credit would help support 4,000-5,000 solar systems, totaling 24-30 MW of solar each year.
Benefits of Solar Energy in New Mexico
- In 2018, there were 107 solar companies and 2,168 solar jobs in New Mexico.
- There was a 25% decrease in solar jobs since the tax credit expired in 2016.
Good for New Mexico communities, health & environment
- There are no known health impacts related to solar energy and generation of power.
- Emissions from traditional sources of energy (e.g. coal powered plants) can trigger asthma attacks in at-risk populations.
- Solar energy is a pollution-free energy source.
- Solar energy does not consume water while producing electricity
The New Mexico Solar Market Development Tax Credit or "New Mexico Solar Tax Credit" was passed by the 2020 New Mexico Legislature and signed by New Mexico Governor Michelle Lujan Grisham.
- This bill provides a 10% tax credit with a value up to $6,000 for a solar energy systems.
- The bill states that a business or homeowner who purchases and installs a solar energy system on or after March 1, 2020 are eligible for this non-refundable tax credit.
- First come first served - the solar tax credit has an annual allotment of $8M. This will go quickly, so don't wait to get your solar project started.