Residents of the state of New Mexico have the opportunity to save significant sums of money by taking advantage of a set of tax credits for solar energy system during the year 2024. After Governor Michelle Luján, Grisham signed into law a fiscal package that increased the amount of incentives available for New Mexican families to purchase and install renewable energy in their homes.
The state of New Mexico describes this tax credit for the development of the solar market as a popular program that does not have enough budget to distribute among all applicants seeking to change the energy matrix of their home for one based on clean energy. But this year, lawmakers increased the maximum amount of money available for this solar tax credit fund, meaning more families have the opportunity to access the incentives.
New Tax Credits Available to Invest in Solar Energy
To the tax package for New Mexico families who want to invest in solar energy for their homes, the state legislators raised the limit to $30 million, starting this year, a significant increase from $12 million in 2023.
So the things, residences, businesses, and companies that want to apply for the tax credit can apply to receive up to 10% of the total costs of purchase and installation of solar thermal and photovoltaic or qualified photovoltaic systems, with a maximum cap of $6,000.
To date, the New Mexico Energy, Minerals and Natural Resources Department, the agency that accepts applications for the tax credit, has approved more than $430,000 in requested tax credits, according to the department’s solar tax program dashboard. That leaves about $29.5 million for the rest of the fiscal year, so you still have time to apply and get your tax credit, a not insignificant amount if you consider the investment you are making to improve the quality of life of your family, which also benefits the environment.
Tax Credits Applicants Rejected Last Year Encouraged to Apply Again
The department reported that, in the last three years, they have been forced to reject hundreds of applications that qualified but arrived when the budget was already over, according to the agency. That’s why, for this year, with an expanded budget, people who were rejected last year are invited to apply again. Moreover, those people who applied in 2020, 2021, and 2022, are also invited to participate in this new budget.
However, the entity in charge of energy has not yet started the distribution of these new tax credits. The department is in the process of updating the program’s administrative regulations to ensure the availability of the additional $20 million in credits. The process is expected to be ready for implementation in June 2024, as announced by the agency.
The link to apply for the solar tax credit for 2024 can be found on the energy department’s website at emnrd.nm.gov. Don’t lose the opportunity to get your own tax credit.