Tax credit for solar installation

Posted on Jan 6, 2016

Several years ago, the New Mexico Legislature passed a new tax credit to incentivize homeowners and businesses to install solar energy systems. And it was incredibly successful. The state Energy Conservation Division estimates that more than $31 million was spent by New Mexico businesses and homeowners on solar panels and heating systems in just the past year. But, the tax credit is set to expire this year unless the Legislature takes action to renew it. Rep. Sarah Maestas Barnes, R-Albuquerque, and Sen. Mimi Stewart, D-Albuquerque, have both introduced legislation to restore the tax credits. Both bills would maintain the current benefit of as much as 10 percent of the total cost, up to $9,000, in the upcoming years, with that amount being reduced incrementally starting in the year 2019.

We have argued before, and continue to believe, that New Mexico’s tax code has far too...