How to Claim the New Mexico Solar Tax Credit

1. How to Claim New Mexico Solar Tax Credit: A Step-by-Step Guide Investing in renewable energy can significantly reduce your environmental footprint and save you money. For residents of New Mexico, understanding How to Claim New Mexico Solar Tax Credit is crucial to maximizing the financial benefits of solar energy. This tax credit is a powerful tool that offsets the cost of solar installations, making clean energy more accessible for homeowners and businesses alike. In this guide, we’ll walk you through everything you need to know about claiming this valuable incentive. What is the New Mexico Solar Tax Credit? The New Mexico Solar Market Development Tax Credit, commonly referred to as the solar tax credit, offers a 10% tax credit on the total cost of purchasing and installing a solar energy system, up to a maximum of $6,000. This program is designed to encourage solar adoption by reducing the upfront financial burden for residential and small business solar projects. Steps to Claim the New Mexico Solar Tax Credit

2. 1. Install a Qualifying Solar System ● Work with a certified solar installer to ensure your system meets New Mexico’s program requirements. The system must be operational before you apply for the tax credit. ● 2. Complete the Solar Certification Application ● Obtain the solar tax credit application from the New Mexico Energy, Minerals, and Natural Resources Department (EMNRD). Attach all required documentation, including: ○ Proof of purchase ○ Installation verification ○ System certification details ● 3. Submit Your Application ● Submit the completed application to the EMNRD as soon as possible, as approvals are issued on a first-come, first-served basis. Once your application is approved, you will receive a certification for your tax credit. ● 4. Claim the Credit on Your Tax Return ● Use the certification provided by the EMNRD to claim the tax credit on your New Mexico state tax return. To ensure accurate filing and compliance, consult a tax professional. ● Additional Solar Incentives in New Mexico In addition to the New Mexico Solar Tax Credit, there are several other programs to enhance the affordability of solar energy: ● Federal Solar Tax Credit (ITC): This allows you to deduct 30% of the total solar installation cost from your federal taxes. Net Metering: Earn credits for excess solar energy you generate, which can be applied to future utility bills. Property Tax Exemption: Newly installed solar systems in New Mexico are exempt from property tax assessments, ensuring no additional tax burden from increased property value. ● ● Why Choose Solar in New Mexico? New Mexico is one of the best states for solar energy, thanks to abundant sunshine and supportive policies. The average electricity price in the state is 14.03 cents/kWh, and with an average system

3. producing 11,000 kWh annually, homeowners can save up to $1,543 per year on energy costs. By leveraging the New Mexico Solar Tax Credit and other incentives, solar power becomes an even more appealing investment for residents. Start Your Solar Journey with SolarSME Ready to take advantage of New Mexico’s solar incentives? SolarSME is your trusted local partner, offering expert guidance to help you navigate the process of installing solar panels and claiming the New Mexico Solar Tax Credit. Visit Solar SME today to explore affordable solar solutions and start saving with clean energy.