Solar Energy Gross Receipts Tax Deduction
Administered by: New Mexico Energy, Minerals and Natural Resources Department
Quick Summary
If you install a solar system for space heating, water heating, or electricity on your property—including dark-colored solar water tanks or non-vented trombe walls with all necessary equipment—your solar contractor may deduct the revenue from that sale and installation from their gross receipts tax liability. This tax benefit flows to installers and contractors, potentially lowering their costs and making solar more affordable for you to purchase.
AI-generated summary • Updated 7/12/2026
Program Details
- Program ID
- 2566
- Effective Date
- 7/1/2007
- Last Updated
- 9/26/2025
Eligibility
Program Summary
New Mexico has a gross receipts tax structure for businesses instead of a sales tax. Businesses are taxed on the gross amount of their business receipts each year before expenses are deducted. Revenue generated by the sale and installation of solar systems used to provide space heat, hot water, or electricity to the property on which it is installed may be deducted from gross receipts before the gross receipts tax is calculated. Dark-colored water tanks exposed to sunlight, including all equipment necessary for the installation and operation of the water tank as a part of the overall water system of the property, as well as a non-vented trombe wall, including all equipment necessary for the installation and operation of the trombe wall, are also eligible for this tax deduction.
Contact & Resources
Please verify current program details with the administering agency before making any financial decisions.