A. Except as provided in Subsection C of this section, a taxpayer who files an individual New Mexico income tax return for a taxable year beginning on or after January 1, 2006 and who purchases and installs after January 1, 2006 but before December 31, 2016 a solar thermal system or a photovoltaic system in a residence, business or agricultural enterprise in New Mexico owned by that taxpayer may apply for, and the department may allow, a solar market development tax credit of up to ten percent of the purchase and installation costs of the system.
B. The total solar market development tax credit allowed for either a photovoltaic system or a solar thermal system shall not exceed nine thousand dollars ($9,000). The department shall allow solar market development tax credits only for solar thermal systems and photovoltaic systems certified by the energy, minerals and natural resources department.
C. Solar market development tax credits may not be claimed or allowed for:
(1) a heating system for a swimming pool or a hot tub; or
(2) a commercial or industrial photovoltaic system other than an agricultural photovoltaic system on a farm or ranch that is not connected to an electric utility transmission or distribution system.
D. The department may allow a maximum annual aggregate of:
(1) two million dollars ($2,000,000) in solar market development tax credits for solar thermal systems; and
(2) three million dollars ($3,000,000) in solar market development tax credits for photovoltaic systems.
E. A portion of the solar market development tax credit that remains unused in a taxable year may be carried forward for a maximum of ten consecutive taxable years following the taxable year in which the credit originates until fully expended.
F. Prior to July 1, 2006, the energy, minerals and natural resources department shall adopt rules establishing procedures to provide certification of solar thermal systems and photovoltaic systems for purposes of obtaining a solar market development tax credit. The rules shall address technical specifications and requirements relating to safety, code and standards compliance, solar collector orientation and sun exposure, minimum system sizes, system applications and lists of eligible components. The energy, minerals and natural resources department may modify the specifications and requirements as necessary to maintain a high level of system quality and performance.
G. As used in this section:
(1) "photovoltaic system" means an energy system that collects or absorbs sunlight for conversion into electricity; and
(2) "solar thermal system" means an energy system that collects or absorbs solar energy for conversion into heat for the purposes of space heating, space cooling or water heating.
History: Laws 2006, ch. 93, § 1; 2009, ch. 280, § 1.
The 2009 amendment, effective June 19, 2009, in Subsection A, changed the reference from Subsection B to Subsection C; changed "December 31, 2015" to "December 31, 2016"; after "credit up to", changed "thirty percent" to "ten percent"; and after "costs of the system", deleted the remainder of the sentence and the former last sentence, which provided that the combined federal and state tax credits shall not exceed thirty percent of the cost of the system and which provided the method to determine the amount of the state tax credit.
Applicability. — Laws 2009, ch. 280, § 2 provided that the provisions of Laws 2009, ch. 280, § 1 apply to taxable years beginning on or after January 1, 2009.
Structure New Mexico Statutes
Article 2 - Income Tax General Provisions
Section 7-2-3 - Imposition and levy of tax.
Section 7-2-5.2 - Exemption; income of persons sixty-five and older or blind.
Section 7-2-5.6 - Exemption; medical care savings accounts.
Section 7-2-5.7 - Exemption; income of individuals one hundred years of age or older.
Section 7-2-5.8 - Exemption for low- and middle-income taxpayers.
Section 7-2-5.11 - Exemption; armed forces salaries.
Section 7-2-7 - Individual income tax rates.
Section 7-2-7 - Individual income tax rates. (Effective January 1, 2006 through December 31, 2007.)
Section 7-2-7.2 - Tax rebate; 2005 taxable year. (Effective for 2005 tax year.)
Section 7-2-7.3 - Exemption; 2005 taxable year rebate. (Effective for 2005 tax year.)
Section 7-2-7.4 - 2020 income tax rebate.
Section 7-2-9 - Tax computation; alternative method.
Section 7-2-10 - Income taxes applied to individuals on federal areas.
Section 7-2-11 - Tax credit; income allocation and apportionment.
Section 7-2-12 - Taxpayer returns; payment of tax.
Section 7-2-12.1 - Limitation on claiming of credits and tax rebates.
Section 7-2-12.2 - Estimated tax due; payment of estimated tax; penalty.
Section 7-2-13 - Credit for taxes paid other states by resident individuals.
Section 7-2-14 - Low-income comprehensive tax rebate.
Section 7-2-14.5 - Imposition of tax; limitations.
Section 7-2-18.2 - Credit for preservation of cultural property; refund.
Section 7-2-18.4 - Qualified business facility rehabilitation credit; income tax credit.
Section 7-2-18.5 - Welfare-to-work tax credit.
Section 7-2-18.8 - Credit; certain electronic equipment.
Section 7-2-18.10 - Tax credit; certain conveyances of real property.
Section 7-2-18.11 - Job mentorship tax credit.
Section 7-2-18.15 - Working families tax credit.
Section 7-2-18.17 - Angel investment credit.
Section 7-2-18.18 - Renewable energy production tax credit.
Section 7-2-18.19 - Sustainable building tax credit.
Section 7-2-18.21 - Credit; blended biodiesel fuel.
Section 7-2-18.22 - Tax credit; rural health care practitioner tax credit.
Section 7-2-18.23 - Refundable credit; 2007 taxable year.
Section 7-2-18.24 - Geothermal ground-coupled heat pump tax credit.
Section 7-2-18.25 - Advanced energy income tax credit.
Section 7-2-18.26 - Agricultural biomass income tax credit.
Section 7-2-18.27 - Credit; physician participation in cancer treatment clinical trials.
Section 7-2-18.28 - Veteran employment tax credit.
Section 7-2-18.29 - 2015 sustainable building tax credit.
Section 7-2-18.30 - Foster youth employment income tax credit.
Section 7-2-18.31 - New solar market development income tax credit.
Section 7-2-18.32 - 2021 sustainable building tax credit.
Section 7-2-20 - Information returns.
Section 7-2-21 - Fiscal years permitted.
Section 7-2-21.1 - Accounting methods.
Section 7-2-22 - Administration.
Section 7-2-23 - Finding[; wildlife funds].
Section 7-2-24 - Optional designation of tax refund contribution [; game protection fund].
Section 7-2-24.1 - Optional designation of tax refund contribution for tree plantings.
Section 7-2-24.2 - Optional designation of tax refund contribution; healthy soil program.
Section 7-2-28 - Optional designation of tax refund contribution.
Section 7-2-28.1 - Veterans' state cemetery fund; created.
Section 7-2-30 - Optional designation of tax refund contribution [; substance abuse education fund].
Section 7-2-30.4 - Optional designation of tax refund contribution; Vietnam veterans memorial.
Section 7-2-30.5 - Optional designation of tax refund contribution; veterans' enterprise fund.
Section 7-2-30.6 - Optional designation of tax refund contribution; lottery tuition fund.
Section 7-2-30.7 - Optional designation of tax refund contribution; horse shelter rescue fund.
Section 7-2-30.8 - Finding; optional designation of tax refund contribution; senior services.
Section 7-2-30.9 - Optional designation of tax refund contribution; animal care and facility fund.
Section 7-2-30.11 - Optional designation of tax refund contribution; New Mexico housing trust fund.
Section 7-2-31 - Optional designation of tax refund contribution.
Section 7-2-31.1 - Optional refund contribution provisions; conditional repeal.
Section 7-2-32 - Deduction-payments into education trust fund.
Section 7-2-34 - Deduction; net capital gain income.
Section 7-2-36 - Deduction; expenses related to organ donation.
Section 7-2-37 - Deduction; unreimbursed or uncompensated medical care expenses.
Section 7-2-39 - Deduction from net income for certain dependents.
Section 7-2-40 - Deduction; income from leasing a liquor license.