2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.14 - Solar market development tax credit; residential and small business solar thermal and photovoltaic market development tax credit.

A. Except as provided in Subsection C of this section, a taxpayer who files an individual New Mexico income tax return for a taxable year beginning on or after January 1, 2006 and who purchases and installs after January 1, 2006 but before December 31, 2016 a solar thermal system or a photovoltaic system in a residence, business or agricultural enterprise in New Mexico owned by that taxpayer may apply for, and the department may allow, a solar market development tax credit of up to ten percent of the purchase and installation costs of the system.
B. The total solar market development tax credit allowed for either a photovoltaic system or a solar thermal system shall not exceed nine thousand dollars ($9,000). The department shall allow solar market development tax credits only for solar thermal systems and photovoltaic systems certified by the energy, minerals and natural resources department.
C. Solar market development tax credits may not be claimed or allowed for:
(1) a heating system for a swimming pool or a hot tub; or
(2) a commercial or industrial photovoltaic system other than an agricultural photovoltaic system on a farm or ranch that is not connected to an electric utility transmission or distribution system.
D. The department may allow a maximum annual aggregate of:
(1) two million dollars ($2,000,000) in solar market development tax credits for solar thermal systems; and
(2) three million dollars ($3,000,000) in solar market development tax credits for photovoltaic systems.
E. A portion of the solar market development tax credit that remains unused in a taxable year may be carried forward for a maximum of ten consecutive taxable years following the taxable year in which the credit originates until fully expended.
F. Prior to July 1, 2006, the energy, minerals and natural resources department shall adopt rules establishing procedures to provide certification of solar thermal systems and photovoltaic systems for purposes of obtaining a solar market development tax credit. The rules shall address technical specifications and requirements relating to safety, code and standards compliance, solar collector orientation and sun exposure, minimum system sizes, system applications and lists of eligible components. The energy, minerals and natural resources department may modify the specifications and requirements as necessary to maintain a high level of system quality and performance.
G. As used in this section:
(1) "photovoltaic system" means an energy system that collects or absorbs sunlight for conversion into electricity; and
(2) "solar thermal system" means an energy system that collects or absorbs solar energy for conversion into heat for the purposes of space heating, space cooling or water heating.
History:
Laws 2006, ch. 93, § 1; 2009, ch. 280, § 1.
ANNOTATIONS
The 2009 amendment,
effective June 19, 2009, in Subsection A, changed the reference from Subsection B to Subsection C; changed "December 31, 2015" to "December 31, 2016"; after "credit up to", changed "thirty percent" to "ten percent"; and after "costs of the system", deleted the remainder of the sentence and the former last sentence, which provided that the combined federal and state tax credits shall not exceed thirty percent of the cost of the system and which provided the method to determine the amount of the state tax credit.
Applicability.
— Laws 2009, ch. 280, § 2 provided that the provisions of Laws 2009, ch. 280, § 1 apply to taxable years beginning on or after January 1, 2009.