New Mexico Approves Solar Energy Tax Credits

March 08, 2006

New Mexico Governor Bill Richardson signed a bill on March 3rd that establishes state tax credits for solar energy installations. Senate Bill 269 allows an individual tax credit of 30 percent of the purchase and installation costs for solar electric and solar thermal systems, up to $9,000 for each system. The system must be certified by the New Mexico Energy, Minerals, and Natural Resources Department and must be installed by 2015. The bill provides $3 million for solar electric tax credits and $2 million for solar thermal tax credits each year. According to the governor's press release, when the state tax credit is combined with federal tax credits, they will reduce the cost of a residential solar energy system by about one third. See the governor's press release and the full text of the bill.

To help homeowners take advantage of the federal solar energy tax credits, the Solar Energy Industries Association (SEIA) has published "The SEIA Guide to Federal Tax Credits for Solar Energy," a 40-page manual in the form of a 1.4-MB PDF file. See the SEIA press release and sign up on the SEIA Web site to receive a copy of the guide via email.