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Solar Market Development Tax Credit (SMDTC)
Governor Lujan Grisham has signed House Bill 252 into law to address situations where the fund year for the New Solar Market Development Tax Credit (NSMDTC) has been depleted.
HB252 provisions:
- Provides $20 million in tax credits to individuals whose applications were rejected after the cap was reached in prior tax years 2020 through 2023;
- Raises the annual aggregate cap to $30 million per year;
- Provides a pathway for tribal members whose property is held in leasehold to be eligible for the NMSDTC incentive.
The New Solar Market Development Tax Credit (Supplemental) is now ready to receive applications. This opportunity is available for systems installed in 2020, 2021, 2022, and 2023 that have not previously received credit.
View the FAQ page here.
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New Solar Market Development Tax Credit Incentive
Welcome to the electronic application portal for the New Solar Market Development Tax Credit (NSMDTC).
Overview of tax credit process:
Step 1- Purchase and install an operating solar energy system.
Step 2- Obtain required documents from installation contractor.
Step 3- Apply for a tax credit here with Energy Minerals and Natural Resources Department (EMNRD).
Step 4- Receive a certificate of eligibility from EMNRD.
Step 5- File your tax credit with the New Mexico Taxation and Revenue Department.
EMNRD is no longer accepting paper applications. You will find a link to the online application portal at the bottom of this page.
The NSMDTC is available for up to 10% of the equipment, materials, and labor costs of a solar energy system, but cannot exceed $6,000. The Department shall certify the net cost of acquiring the system and shall not include disallowed costs, pursuant to 3.3.14.15 C. NMAC.
The fund year of the solar energy system is determined by the date the building code authority certifies a successful inspection of the solar system.
The Department cannot approve an application that is not complete or does not meet the approval criteria. If the tax credit fund cap for that year has been reached, the applicant will be notified that their application is not certified and will not be issued a tax credit.
Before you start an application, review your documents to be sure they are complete. You will need the following required documents in digital form.
Required Documents:
- A current property tax bill or other equivalent proof of ownership in the applicant’s name for the residence, business, or agricultural enterprise where the solar energy system is installed.
- An itemized invoice listing seperate costs for the equipment, materials, and labor for a solar energy system the department certifies shall be documented by an itemized invoice.
- The Building Code Inspection Report that includes the building code authority’s permit number and date of successful inspection of the solar system. Applicants may submit a physical form, a photo of the inspection sticker, or a web-based report. If an electrical permit is issued, please include it.
- The design schematic and technical specification sheet for the installed solar system.
- A completed Contractor’s Statement of Understanding, signed by the contractor who installed the solar energy system or their authorized representative. Please note: The “Contractor Statement of Understanding” is no longer a required document.
Please allow 3 to 4 weeks to process the completed application. The Department will send certificates of eligibility electronically to the e-mail address provided on the application.
Links:
Application website: https://wwwapps.emnrd.nm.gov/ECMD/NSMDSubmissions
Required Document: Contractor Statement of Understanding (Please note: The “Contractor Statement of Understanding” is no longer a required document.)
Online Application Instructions for New Solar Market Development Tax Credit: Application Instructions
Statute – New Solar Market Development Tax Credit: 3.3.14 NMAC