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Solar Market Development Tax Credit (SMDTC)

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Solar Market Development Tax Credit (SMTDC)

**EMNRD is no longer accepting 2021 Solar Market Development Tax Credit applications. The 2021 annual funding cap has been reached. Applications for certification received after this limitation has been met in a calendar year shall not be approved (NMAC 3.3.14.10C). EMNRD will continue to accept and review applications for systems installed in 2022.**

EMNRD is reviewing the provisions in the amendments made to the Solar Market Development Tax Credit by the 2022 legislature and will develop new rules.

EMNRD is not accepting walk-in application drop-offs or walk-in requests for technical assistance. We are in the process of installing a secure box outside for drop-offs. In the interim, you can request a drop-off by contacting our office at emnrd.taxcredits@state.nm.us. If you would like to request a technical assistance appointment, please contact our office at emnrd.taxcredits@state.nm.us.

Solar Market Development Tax Credit applications are reviewed in the order received. Please allow 3-4 weeks for processing of completed applications. Certificates of Eligibility are sent electronically to the email address provided on the application. Should you have any questions, please contact our office at emnrd.taxcredits@state.nm.us. 

The applicant shall submit a complete application that meets all requirements as detailed in NMAC 3.3.14 for review by EMNRD within 12 months following the calendar year in which the system was installed. This requirement was established by statute. EMNRD does not have the authority to change this requirement.

NMAC 3.3.14.17: CLAIMING THE STATE TAX CREDIT:

A.  An applicant shall apply for the state tax credit with the taxation and revenue department and provide the certification and any other information the tax and revenue department requires within 12 months following the calendar year in which the system was installed.
B.  If the amount of state tax credit claimed exceeds the applicant’s individual income tax liability, the applicant may carry the excess forward for up to five consecutive taxable years.
C.  An applicant claiming a state tax credit shall not claim a state tax credit pursuant to another law for costs related to the same solar energy system costs.

The Solar Market Development Tax Credit provides a tax credit of 10% for small solar systems, including on-grid and off-grid PV systems and solar thermal systems. The starting date for this tax credit is March 1, 2020, and the tax credit runs through December 31, 2027. There is a cap of $8 million in tax credits to be issued every year on a first-come first-serve basis.

    Every installation owner is encouraged to submit an application to the office as soon as their system is fully connected and operational. Waiting to the end of the calendar year or until tax filing season may cause the loss of this tax credit.

    How to Apply

    For best results, download and save the application form and fill it using one of the following PDF applications which has been tested and verified to produce a form compliant with AcroForm standards. These software are free versions available for many platforms which will produce a file compatible with the “Submission Site -NSMD Income Tax Credit Application” below.

    For Adobe Reader go to the Adobe Reader download page

    For Foxit Reader go to the Foxit Reader download page