New Solar Market Development Tax Credit
Administered by New Mexico Energy, Minerals and Natural Resources Department, New Mexico Taxation and Revenue Department
New Mexico offers a 10% tax credit on your solar installation costs, up to $6,000, for photovoltaic or solar thermal systems on property you own or lease from a federally recognized tribe or pueblo. To claim it, get your system inspected and certified, then submit an application to the Energy, Minerals and Natural Resources Department within 12 months of installation, followed by filing with the Taxation and Revenue Department—if your credit exceeds your tax bill, you'll receive the excess as a refund.
This program creates customer value by offsetting system costs up to $6,000 per residential, commercial, or agricultural installation, making solar more affordable and expanding your addressable market. You must provide itemized invoices documenting equipment, materials, and labor costs, coordinate building code inspections (electrical permits preferred), and supply design schematics and site plans so customers can complete EMNRD certification before claiming the tax credit.
The program issues 10% tax credits capped at $6,000 per system and $12,000,000 annually across all applicants, covering grid-tied and off-grid PV, active solar thermal, and storage systems (excluding pool heaters and passive solar). Applicants must obtain EMNRD certification via documented inspection reports and itemized invoices, then file within 12 months of installation; the program targets residential, commercial, industrial, agricultural, tribal, multifamily, and low-income sectors and expires December 31, 2032.
Program details
- Program ID
- 22472
- Effective
- 3/1/2020
- Expires
- 1/1/2032
- Last updated
- 3/20/2026
Eligibility
- Sectors
- commercial industrial residential tribal government agricultural multifamily residential low income residential
- Technologies
- solar water heat solar space heat solar thermal electric solar thermal process heat solar photovoltaics
Incentive amount
$30 million annually
Program summary
New Mexico provides a 10% personal income tax credit (up to $6,000) for taxpayers that own a residence, business, or agricultural enterprise who purchase and install certified photovoltaic (PV) and solar thermal systems on their property or on property they lease from a federally recognized Indian nation, tribe, or pueblo. Eligible systems include grid-tied commercial and industrial PV systems, off-grid and grid-tied residential PV systems, active solar thermal systems, and systems with or without storage. To be eligible, systems must first be certified by the New Mexico Energy, Minerals and Natural Resources Department. The taxpayer must then apply for the tax credit with the New Mexico Taxation and Revenue Department within 12 months of installation. Note that solar pool or hot tub heaters and passive solar heating are not eligible for this tax credit.
If the credit exceeds a taxpayer's tax obligation, the taxpayer will receive the excess as a tax refund that year. Aggregate credit levels are capped annually at $12,000,000. These tax credits are set to expire December 31, 2032.
All relevant forms and eligibility requirements are available on the program website listed above.
Contact & resources
- Contact email
- emnrd.taxcredits@state.nm.us
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
