Similar to the federal tax credit, New Mexico’s solar tax credits provides you with money that goes towards your income taxes when you install a solar system on your home. It can also be used for systems that are installed on commercial properties.
New Mexico is Perfect for Solar Energy.
In terms of the sunniest states, New Mexico is only surpassed by Arizona, with its overwhelming majority getting over 6-kilowatt hours per square meter of direct sunlight a day.
This means that New Mexico’s renewable energy credit for solar resources is abundant with opportunities for installing both PVs and solar thermal energy projects in 2021.
While individuals and businesses can take advantage of the enormous solar opportunities in New Mexico, solar tax credits allow homeowners and business owners to save thousands on the cost of systems and installation.
It is safe to say that New Mexico energy rebates are some of the best you’ll find in the country.
One of the top and most popular solar incentives in the United States is from the Federal government. The federal solar tax credit is calculated as 26% of the total value of your solar system, which consists of parts, labor, permitting, and others.
You can also get the tax credit directly through your Federal tax return if you choose to finance or purchase your system outright.
One of our solar specialists will assist you in calculating your 26%, and you can meet your accountant to fill out form 5695 to receive your credit.
If you install solar on your homes as part of your sustainable building efforts, the state government will credit you on your taxes. The U.S. Green Building Council will have to certify your home as sustainable for you to qualify for this tax credit. The value of the credit depends on the certification level.
You want to ensure you get solar tax credits for the power the solar panels you put on your roof produces, and that’s what you get with New Mexico’s net metering policy.
Net Metering in New Mexico allows you to earn credits for any of the extra power your system generates. Those credits can also be used when your system doesn’t produce enough electricity.
When you install solar systems in your home, it increases the value of your home and gives room for more marketability. However, in New Mexico, such extra value is exempt from property tax.
With a property tax exemption, you won’t have to worry about a higher tax bill while still getting the financial benefits of generating the power you use.
Also, there’s the state sales tax exemption offer for solar panel installation. This means that businesses and homeowners would not have to pay extra state sales taxes on their solar panel systems.
The likely best solar incentive for property owners in New Mexico is the state’s solar tax credit. This solar incentive takes off up to $6,000 or 10% of your total solar system expenses from your state tax payments.
With the abundance of sun in New Mexico, a solar energy system is definitely, a good investment that will pay off in years to come.
New Mexico solar tax credit in 2021 is available to individuals and businesses who wish to go solar in New Mexico. It only makes sense that one would want to take advantage of them while they last.