New Mexico’s Solar Tax Credit Fund for 2023 Nearing Depletion

The Energy, Minerals and Natural Resources Department (EMNRD) has issued a warning to taxpayers in New Mexico that the fund supporting the New Solar Market Development Tax Credit is almost depleted for the 2023 tax year. This announcement comes just under three months before the deadline for filing federal and state tax returns for 2023.

New Mexico residents who installed solar energy systems in their homes in 2023 have received tax credit certificates totaling over $10 million. Under state law, the agency is authorized to issue a maximum of $12 million in tax credits for the 2023 tax year.

Rebecca Stair, Director of EMNRD’s Energy Conservation and Management Division, which administers the program, stated, “The New Solar Market Development Tax Credit remains highly popular among New Mexico homeowners. There is currently slightly over $1 million remaining in the fund for 2023 tax credits, and we are processing new applications daily, causing that amount to continuously decline. We encourage individuals who installed solar systems in 2023 but have not yet applied for the tax credit to submit their applications promptly.”

To be eligible for a 2023 tax credit certificate, the solar system must have passed inspection between January 1, 2023, and December 31, 2023. Applications are evaluated on a first-come, first-served basis for complete applications. Once the annual funding limit.