The wait is over! New Mexico’s popular solar tax credit scheme that previously aided about 7,000 residents is brought into action again! After it expired in 2016, New Mexico’s governor Michelle Lujan Grisham signed the New Solar Market Development Tax Credit scheme into law.
The credit scheme makes installing solar on homes convenient and gives the state’s solar industry the much-needed thrust. Sounds interesting? We are sure it does! Here’s everything you need to know about the New Mexico solar property tax credit scheme.
How does the scheme work?
Much like the federal tax credit, the New Mexico solar property tax credit scheme compensates consumers with the money that goes towards their income tax when installing a solar system on their home. It also applies to commercial properties that install solar panels in New Mexico.
How much is the credit?
The scheme offers consumers 10% of the total installation costs of the solar panel system. However, this amount cannot exceed 6,000 USD per taxpayer in a financial year. If the credit amount surpasses your tax amount for the taxable year, the remaining credit can be carried over for the next five years.
For instance, if your New Mexico solar property tax credit amount is about 2,000 USD and your total tax amount is 1,500 USD, the remaining 500 USD can be applied to your income taxes in the following financial year.
To be eligible for the incentive, your solar system should:
- Be installed on or after March 1, 2020
- Have panels certified by the New Mexico energy, minerals, and natural resources department installed by New Mexico solar companies?
If you wish to place your application for the credit scheme, the new Mexico solar company you have partnered with will help you with the process.
How much can you save with the new Mexico solar property tax scheme?
Did you know that the New Solar Market Development Tax Credit scheme has the potential to help you save thousands of dollars and make solar energy more affordable than ever? Yes, that’s right. Even before the scheme was effective, installing solar meant substantial savings on electric bills.
The New Mexico solar property tax takes your savings game up a notch! It is no surprise that people are increasingly favoring investments in solar. To put this in perspective, a 10% rebate on your state tax of 18,000 USD can bring down the total cost of your system to 16,200 USD. Get in touch with your nearest New Mexico solar company to get a personalized estimate of how much you can cut down on your expenses by installing solar panels on your roof.
Multi-dimensional positive impact
The New Mexico solar property tax scheme is capable of doing more than just freeing up extra money in your pocket. The incentive also provided the solar industry of New Mexico with a much-needed boost. According to energy analyst David Rewcastle, this boost is significant after the industry has suffered severe losses in the wake of the previous solar tax credit scheme’s expiry in 2016.
In the years following 2016, New Mexico has seen a sharp decrease in the number of jobs in the solar industry. As fewer people were interested in solar panel installation, about 31% of the people working in the industry were forced out of work due to the scheme’s expiration.
Moreover, the scheme also reduces the individual carbon footprint and enables consumers to play their part in keeping the planet green! New Mexico is one of the biggest oil producers in the United States. Initiatives like this substantially improve the job market and are a step in the right direction!