Gross Receipts Tax Exemption for Sales of Wind and Solar Systems to Government Entities

This exemption applies to sales made to federal, state, or local government entities, so it does not directly reduce what a homeowner pays for a home system. It may matter if you work with a local government or public body on a wind or solar project. Contact the New Mexico Taxation and Revenue Department for details.

Receipts from selling certain wind turbine equipment and solar thermal electric or photovoltaic systems to federal, state, or local government customers are exempt from New Mexico gross receipts, which can make your bids to public agencies more competitive. The solar exemption covers sales to a government on or after July 1, 2010, following S.B. 201 signed in March 2010. Confirm documentation and filing requirements with the New Mexico Taxation and Revenue Department.

New Mexico taxes businesses on gross receipts rather than levying a sales tax, and this incentive excludes qualifying receipts from sales of wind and solar systems to government entities from that tax base. The exemption originally covered certain wind turbine equipment and was extended to solar thermal electric and photovoltaic systems by S.B. 201 for sales on or after July 1, 2010. It targets sellers, installers, and construction contractors serving federal, state, and local government buyers, and it operates as a foregone-revenue exemption rather than a funded rebate.