New Mexico Solar Market Development Tax Credit

About This Program

New Mexico provides a 10% state income tax credit (up to $9,000 per taxpayer per year) on the purchase and installation of solar photovoltaic or solar thermal systems for residential properties. Combined with the 30% federal Investment Tax Credit (ITC), homeowners can offset up to 40% of solar installation costs. Credits may carry forward if not fully used in the current year.

10% NM credit up to $9,000 + 30% federal ITC. Combined potential offset of 40% on a $30,000 system. NM credit non-refundable; requires NM tax liability.

Key Details

• 10% NM state tax credit on solar PV or solar thermal installation
• Maximum $9,000 credit per taxpayer per year
• Combine with 30% federal Investment Tax Credit for up to 40% savings
• Non-refundable; unused credit may carry forward
• File with NM state income tax return

How to Apply

Deadline: Annual – file with NM state income tax return