NEW MEXICO (KRQE) – The New Mexico Energy, Minerals, and Natural Resources Department (EMNRD) has reached the $12 million statutory cap for solar tax credits for the 2022 tax year. This is the third year in a row that the cap has been reached under the Solar Market Development Tax Credit program.
Since the program began in 2020, around 9,000 New Mexicans have benefitted from the program. The EMNRD reports that the average tax credit totaled $3,050. According to the EMNRD, the program has promoted the generation of an additional 73 megawatts of solar power in New Mexico’s power grid.
The tax credit program offers a 10% tax credit on the costs of solar system installations, up to a maximum of $6,000. Although there are no credits left for solar systems installed in 2021 or 2022, the legislature allocated another $12 million for the 2023 tax year.
Anyone who installs a qualifying solar system between Jan. 1, 2023, and Dec. 31, 2023, is eligible for the tax credit. The EMNRD advises buyers to submit an application for the credit right after installation, rather than waiting for the next filing season, to get a better chance at receiving the credit before the cap is reached.
Details on the program are available on the EMNRD’s website as well as information on how to apply for the tax credit.