How Do I Claim the New Mexico Solar Tax Credit?
One of the biggest incentives available to New Mexico solar homeowners is the state solar tax credit. While other state-level incentives also exist, such as sales and property tax exemptions, they will likely not save as much as the state tax credit would. But how can a solar homeowner claim this incentive? Let’s take a look.
Claiming the New Mexico Solar Tax Credit
The process to claim the New Mexico solar tax credit is simple. However, it can take some time. The process requires some certifications and filling out forms which can extend the timeline.
Step One: Fill Out the Application
The New Mexico Energy, Minerals and Natural Resources Department (EMNRD) oversees energy production in the state. They have a number of forms that need to be filled out to qualify for the solar tax credit. Which form you need to fill out is going to be based on the type of system being installed. In this case, New Mexico solar homeowners will need the residential form.
Step Two: Fill Out the Binder of Required PDFs
The second form that needs to be filled out is actually a combination of multiple different forms. Some of the forms include a valuation of your property, a schematic of the solar installation, and a building inspection. There may be other forms, depending on the type of solar installation.
What Else You Should Know About the New Mexico Solar Tax Credit
Alongside the application, there are a few other things solar homeowners should know about the tax credit.
What Is the Tax Credit Worth?
Firstly, it is worth 10 percent of the value of your array and is applied to your state income taxes. It will not apply to your federal income taxes. For that, you would need to look for the federal solar tax credit.
How Long Does the Credit Last?
The New Mexico solar tax credit rolls over for a period of five years. This can be useful to homeowners who don’t owe a large amount of state income taxes. The tax credit will continue to apply to your state income taxes until you reach the 10 percent value or five years have passed.
Are There Other New Mexico Solar Incentives?
Yes, there are. New Mexico homes with solar installations can receive a property tax exemption for the price of the installation. Additionally, all solar equipment purchased for a residential solar array is eligible for having the sales tax waived.