Rebates

H.B. 15, enacted in April 2021, established a new version of the personal tax credit and corporate tax credit for sustainable buildings in New Mexico. The tax credits apply to both commercial and residential buildings.

Commercial Buildings

Commercial buildings which have been registered and certified by the U.S. Green Building Council at LEED Gold or higher for new construction (NC), existing buildings (EB), core and shell (CS), or commercial interiors (CI), and are broadband- and electric vehicle-ready are eligible for a tax credit. The amount of the credit varies according to the square footage of the building, the level of

H.B. 15, enacted in April 2021, established a new version of the personal tax credit and corporate tax credit for sustainable buildings in New Mexico. The tax credits apply to both commercial and residential buildings.

Commercial Buildings

Commercial buildings which have been registered and certified by the U.S. Green Building Council at LEED Gold or higher for new construction (NC), existing buildings (EB), core and shell (CS), or commercial interiors (CI), and are broadband- and electric vehicle-ready are eligible for a tax credit. The amount of the credit varies according to the square footage of the building, the level of

New Mexico has a gross receipts tax structure for businesses instead of a sales tax. Businesses are taxed on the gross amount of their business receipts each year before expenses are deducted. Revenue generated by the sale and installation of a "qualified generating facility" may be deducted from gross receipts before the gross receipts tax is calculated. The deductions are allowed for a 10-year period starting the year construction begins. Qualified generating facilities have a minimum nameplate capacity of 1 megawatt (MW) and include geothermal thermal electric, photovoltaic, solar thermal electric, and recycled energy systems. Solar facilities with associated renewable

Note: The deadline for qualifying for this tax incentive was 12/31/2015. This summary is here for informational purposes only.

A taxpayer that holds an interest in a qualified generating facility located in New Mexico and that files a New Mexico corporate income tax return may claim an advanced energy corporate income tax credit in an amount equal to 6% of the eligible generation plant costs of a qualified generating facilities (see § 7-2A-25).

“Eligible generation plant costs" means expenditures for the development and construction of a qualified generating facility, including costs related to permitting, site characterization and assessment, engineering, design, and site

Note: The deadline for qualifying for this tax incentive was 12/31/2015. This summary is here for informational purposes only.

A taxpayer who holds an interest in a qualified generating facility located in New Mexico and who files an individual New Mexico income tax return may claim an advanced energy income tax credit in an amount equal to 6% of the eligible generation plant costs of a qualified generating facility.

“Eligible generation plant costs" means expenditures for the development and construction of a qualified generating facility, including costs related to permitting, site characterization and assessment, engineering, design, and site and equipment acquisition. 

The Green Path program encourages and facilitates design and construction of energy efficient buildings that substantially exceed code minimum. The program also rewards those who build green by expediting the review time of their submitted building plans and providing them with preliminary plan reviews at no cost.

For commercial construction, renovations and developments the building must substantially exceed code minimum and be LEED Gold or LEED Silver with a minimum of 6 energy points in order to follow Green Path criteria.

Resident housing must also substantially exceed code minimum. Projects must be Build Green New Mexico (BGNM) Silver with a

The Alternative Energy Product Manufacturers tax credit may be claimed for manufacturing alternative energy products and components, including renewable energy systems, fuel cell systems, and electric and hybrid-electric vehicles. Alternative energy components include parts, assembly of parts, materials, ingredients, or supplies that are incorporated directly into end-use products. In 2011 S.B. 233 added "products extracted from or secreted by a single cell photosynthetic organism" to the list of eligible alternative energy products.

Tax Credit

The total amount of the credit is approved by the Taxation and Revenue Department and is not to exceed 5% of the taxpayer’s qualified expenditures. A

Much of the information presented in this summary is drawn from the U.S. Department of Energy’s (DOE) Building Energy Codes Program and the Building Codes Assistance Project (BCAP). For more detailed information about building energy codes, visit the DOE and BCAP websites.

All residential and commercial structures are required to comply with the state’s energy code. The 2009 New Mexico Energy Conservation Code (NMECC), effective June 2013, is based on 2009 International Energy Conservation Code. One amendment in NMECC to the 2009 IECC established climate zones to determine applicable building efficiency requirements based on geographic location

Central New Mexico Electric Cooperative (CNMEC) provides an incentive for its residential members to purchase energy efficient water heaters, clothes washers and dryers, dishwashers, refrigerators, and freezers. All applications for rebates must be submitted within 120 days of purchase to be eligible. Contact CNMEC for more information.

Albuquerque replaced its Zoning Code, Subdivision Ordinance, and Sector Development plans in 2018 with an Integrated Development Ordinance (IDO) that is updated annually. The IDO states that the city "may not approve any subdivision application for property on which there are any deed restrictions, covenants, or binding agreements prohibiting solar collectors from being installed on buildings or erected on the lots or parcels within the application."

The IDO also includes standards for maximum building heights intended to ensure continued access to solar energy. Specific requirements for buildings can be found on page 343.

The State of New Mexico has a

New Mexico's Energy Efficiency and Renewable Energy Bonding Act, which became law in April 2005, authorizes up to $20,000,000 in bonds to finance energy efficiency and renewable energy improvements in state government and school district buildings. At the request of a state agency or school district, the New Mexico Energy, Minerals and Natural Resources Department will conduct an energy assessment of a building to determine specific efficiency measures which will result in energy and cost savings. A state agency or school district may install or enter into contracts for the installation of energy efficiency measures on the building identified in

S.B. 84, enacted in April 2021, established a community solar program in New Mexico. Community solar facilities can generate up to 5MW of alternating current and must have at least 10 subscribers. A single subscriber can purchase no more than 40% of the electricity from a system, and at least 40% of each system's electricity must be reserved for smaller subscriptions of 25kW or less. Native community solar projects are exempt from these requirements. In addition, 30% of a system's electricity must be reserved for low-income subscribers. The program will open to the public in April 2023.

Through April 2024

The Drinking Water State Revolving Loan Fund provides low-cost financial assistance to eligible public water systems to finance the cost of repair and replacement of drinking water infrastructure, maintain or achieve compliance with the federal Safe Drinking Water Act (SWDA) requirements, and protect drinking water quality and public health. Community water systems and nonprofit non-community water systems are eligible to apply for DWSRLF funding.

The Efficient Use of Energy Act of 2005 allows public electric and natural gas utilities to implement cost-effective energy reduction programs. The programs may be funded through a tariff rider for energy efficiency and load management programs. The charges on the consumer cannot exceed the lesser of 3% of the customer’s bill or $75,000 per year per customer. 

A distribution cooperative may recover costs for energy efficiency, conservation, and load management programs and measures through general rates. Distribution cooperatives, in offering and implementing such programs, shall attempt to minimize any cross-subsidies between customer classes.

The Act also provides for monitoring

EPE offers incentives to residential customers in its New Mexico service territory that purchase and install high efficiency equipment for residential use. Some incentives, including insulation, vary depending on the type, size, original efficiency, and end efficiency of the installation. 

Qualified contractors must install certain equipment to qualify customers for rebates. Once equipment is installed, complete application form and submit with a copy of your receipt or contractor invoice to the address on the Rebate Application Form. Receipts and invoices need to clearly indicate equipment specifics, including efficiency and model number. Customers should carefully review the rebate documents and program

Since January 2010, El Paso Electric has purchased renewable energy certificates (RECs) from its New Mexico customers who install small photovoltaic (PV) systems and wind systems. The RECs that El Paso Electric purchases will help the utility comply with New Mexico's renewable portfolio standard (RPS) in exchange for a financial incentive to homeowners and businesses who install PV and wind energy systems.

Only systems connected to the utility's grid and net-metered are eligible. RECs will be measured by a separate REC meter and purchased by El Paso Electric on a monthly basis. For contracts signed on or after January 1

Note: As of February 1, 2017, FEUS' net metering program is closed to new customers. Existing customers are grandfathered under the most recent net metering tariffs.

Net metering rules developed by the New Mexico Public Regulation Commission (PRC) apply to the state's investor-owned utilities and electric cooperatives. Municipal utilities, which are not regulated by the commission, are exempt from the PRC rules but authorized to develop their own net metering programs.

Farmington Electric, a municipal utility, offers net metering to residential and commercial customers with systems up to 10 kilowatts (kW) in capacity that were installed by January 31, 2017.

H.B. 375, enacted in April 2009, created a tax credit in New Mexico for geothermal heat pumps purchased and installed between January 1, 2010, and December 31, 2020, on property owned by the taxpayer. The credit is worth 30% of the system's cost up to $9,000 and can be applied to individual or corporate income taxes. Any unused credit may be carried forward for up to 10 years.

To qualify for the credit, system owners must file an application with the Energy, Minerals and Natural Resources Department (EMNRD). EMNRD will review and approve applications in the order they are

H.B. 375, enacted in April 2009, created a New Mexico state tax credit for geothermal heat pumps purchased and installed between January 1, 2010, and December 31, 2020, on property owned by the taxpayer. The credit is worth 30% of the system's cost up to $9,000 and can be applied to individual or corporate income taxes. Any unused credit may be carried forward for up to 10 years.

To qualify for the credit, system owners must file an application with the Energy, Minerals and Natural Resources Department (EMNRD). EMNRD will review and approve applications in the order they are

New Mexico has a gross receipts tax structure for businesses instead of a sales tax. Businesses are taxed on the gross amount of their business receipts each year before expenses are deducted. Receipts associated with the sale of certain wind turbine equipment to federal, state, or local government entities are exempt from being added to gross receipts. S.B. 201, signed in March 2010, extended this exemption to solar thermal electric and photovoltaic systems sold to a government on or after July 1, 2010.

The Public Regulation Commission (PRC) adopted revised standards and procedures for the interconnection of generating facilities in New Mexico in July 2008.

Rule 569 applies to all qualifying facilities (QFs) under the federal Public Utility Regulatory Policies Act, which generally includes all renewable energy systems and combined heat and power (CHP) systems up to 80 megawatts (MW) in capacity.

Rule 568 applies to renewable energy systems and CHP systems up to 10 MW in capacity. The purpose of Rule 568 is to simplify the interconnection requirements for QFs up to 10 MW and to encourage the use of small-scale, customer-owned

Kit Carson Electric Cooperative provides free energy-use analyses of homes and businesses. The audits identify ways to make homes or offices more energy efficient.

Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing

Investor-Owned Utilities (IOUs)

In addition to meeting the requirements of the state renewable portfolio standard, New Mexico's IOUs are required to offer customers a voluntary program for purchasing renewable energy. The voluntary renewable energy tariff may also allow consumers to purchase renewable energy within certain energy blocks and by source of renewable energy. IOUs are also required to develop an educational program communicating the benefits and availability of the green power option. 

The three IOUs that serve New Mexico customers offer the following programs:

El Paso Electric (EPE)

EPE’s voluntary renewable energy program is called the “Renewable Energy Tariff Program.”

Eligibility and Availability

Net metering is available to all "qualifying facilities" (QFs), as defined by the federal Public Utility Regulatory Policies Act of 1978 (PURPA), which pertains to renewable energy systems and combined heat and power systems up to 80 megawatts (MW) in capacity. There is no statewide cap on the aggregate capacity of net-metered systems.

All utilities subject to Public Regulation Commission (PRC) jurisdiction must offer net metering. (Municipal utilities, which are not regulated by the PRC, are exempt.) Customers are required to be billed for service in accordance with the rate structure and monthly charges that the customer

The New Mexico Gas Company provides incentives for energy saving measures and improvements for residential gas customers. Rebates vary depending on whether they are installed in a new home or an existing home. For additional information on rebates and program guidelines, review the program website or contact New Mexico Gas Company.

New Mexico's Solar Rights Act (1977) and Solar Recordation Act (1983) allow property owners to create solar easements for the purpose of protecting and maintaining proper access to sunlight. The Solar Rights Act established the right to use solar energy as a property right. The solar right prevents neighboring property owners from constructing new buildings or planting new trees which would block their access to the sun.

The Solar Recordation Act describes the procedures for filing a solar right through the County Clerk's Office. The property owner seeking the solar right must give advanced notice to the adjacent property owners

New Mexico provides a 10% personal income tax credit (up to $6,000) for taxpayers that own a residence, business, or agricultural enterprise who purchase and install certified photovoltaic (PV) and solar thermal systems on their property. Eligible systems include grid-tied commercial and industrial PV systems, off-grid and grid-tied residential PV systems, active solar thermal systems, and systems with or without storage. To be eligible, systems must first be certified by the New Mexico Energy, Minerals and Natural Resources Department. The taxpayer must then apply for the tax credit with the New Mexico Taxation and Revenue Department within 12 months of

The Otero County Electric Coop offers an energy efficiency program that provides a pre-inspection service coupled with rebates for installing energy efficient insulation, windows, doors and other weatherization techniques.

Otero County Electric Cooperative offers its customers net metering for distributed generation energy sources.

Note: In November 2016, PNM was granted approval to extend the Customer Solar REC Purchase Programs through the end of 2019. 

In March 2006, PNM initiated a renewable energy credit (REC) purchase program as part of its plan to comply with New Mexico's renewable portfolio standard (RPS). PNM will purchase RECs from customers who install photovoltaic (PV) and solar thermal electric systems up to 100 kilowatts (kW). PNM will then be able to apply these RECs towards their obligations under the state's RPS, which requires 4% of the total generation capacity to come from solar electricity and 0.6% from distributed generation

PNM offers several types of incentives for residential customers to improve the energy efficiency of eligible homes. Rebates are available for appliances and cooling equipment.

PNM also offers the PNM Home Energy Checkup, which gives residential customers a snapshot of their home's electricity use and identifies opportunities to reduce electricity waste. There are two Home Energy Checkup packages to choose from, ranging from $15 to $30. Both Package A ($15) and Package B ($30) include up to twenty LED dimmable bulbs to replace incandescent bulbs, one LED nightlight, two efficient-flow showerheads, two bathroom faucet aerators, one kitchen faucet aerator, and

PNM offers rebates for the purchase of a networked Level 2 electric vehicle chargers by both residential customers and non residential customers. Income-qualified customers can receive additional rebates. See the program website for full details and requirements.

Residential solar energy systems are exempted from property tax assessments in New Mexico in most circumstances. For the purposes of determining property taxes, the value of a property cannot increase by the greater of 3% of the previous year's assessment or 6.1% of the assessment from two years ago according to state law. An assessment may exceed these restrictions, however, if physical improvements are made to the property. Under H.B. 233, enacted in 2010, residential solar systems will not be treated as physical improvements and therefore will not increase the value of the property for property tax purposes. Future assessments

Note: The tax credits are fully subscribed. As of July 2016, there were 973 MW (2,148,000 MWh) of projects in the waiting queue for the wind/biomass tax credit and 1,103 MW (2,369,000 MWh) of projects in the waiting queue for the solar tax credit.

Enacted in 2002, the New Mexico Renewable Energy Production Tax Credit provides a tax credit against personal or corporate income tax. To qualify, an energy generator must have a capacity of at least 1 megawatt and be installed before January 2018. 

Amount

The tax credit is $0.01 per kilowatt-hour (kWh) for companies that generate electricity from

Note: The tax credits are fully subscribed. As of July 2016, there were 973 MW (2,148,000 MWh) of projects in the waiting queue for the wind/biomass tax credit and 1,103 MW (2,369,000 MWh) of projects in the waiting queue for the solar tax credit.

Enacted in 2002, the New Mexico Renewable Energy Production Tax Credit provides a tax credit against personal or corporate income tax. To qualify, an energy generator must have a capacity of at least 1 megawatt and be installed before January 2018. 

Amount

The tax credit is $0.01 per kilowatt-hour (kWh) for companies that generate electricity from

In March 2004, New Mexico’s governor signed into law the Renewable Energy Act (S.B. 43), creating a state renewable portfolio standard (RPS). By 2020, investor-owned utilities (IOUs) are required to generate 20% of total retail sales from renewable energy resources, and rural electric cooperatives are required to generate 10% of total retail sales from renewable energy resources. This requirement was later increased by S.B. 489 of 2019.

Eligible Technologies

Renewable energy is defined as electric energy generated by low- or zero-emissions generation technology with substantial long-term production potential; solar; wind; geothermal; hydropower facilities brought in service after July 1, 2007

Rio Grande Electric Cooperative allows grid interconnections for solar and wind-generated power.

Socorro Electric Cooperative offers energy assessments to residential and non-residential customers to determine ways to increase home or business energy efficiency.

New Mexico has a gross receipts tax structure for businesses instead of a sales tax. Businesses are taxed on the gross amount of their business receipts each year before expenses are deducted. Revenue generated by the sale and installation of solar systems used to provide space heat, hot water, or electricity to the property on which it is installed may be deducted from gross receipts before the gross receipts tax is calculated. Dark-colored water tanks exposed to sunlight, including all equipment necessary for the installation and operation of the water tank as a part of the overall water system of

Note: The deadline for qualifying for this tax incentive was 12/31/2016. This summary is here for informational purposes only.

New Mexico provides a 10% personal income tax credit (up to $9,000) for individuals, sole proprietorship businesses (or one that is required or allowed to elect to file taxes using IRS Form 1040), and agricultural enterprises who purchase and install certified photovoltaic (PV) and solar thermal systems. Eligible systems include grid-tied commercial PV systems, off-grid and grid-tied residential PV systems, and (active) solar hot water or hot air systems. To be eligible, systems must first be certified by

The following standards apply to solar PV systems of any size and wind systems 10 kilowatts or less:

Licensing Requirements

Any person bidding or contracting for the installation of a solar PV system or a wind system 10 kW or less must possess a valid license issued by the construction industries division (CID) in the EE-98 or ER-1 license classification.

Any person performing the installation of a solar PV system or a wind system 10 kW or less must possess a valid journeyman certificate issued by CID in the EE-98J or ER-1J classification, or be an apprentice working under the

S.B. 463, enacted in April 2007, established a personal tax credit and a corporate tax credit for sustainable buildings in New Mexico. The tax credits apply to both commercial and residential buildings. Commercial buildings which have been registered and certified by the U.S. Green Building Council at LEED Silver or higher for new construction (NC), existing buildings (EB), core and shell (CS), or commercial interiors (CI) are eligible for a tax credit. The amount of the credit varies according to the square footage of the building and the level of certification achieved, as indicated on the following chart:

Commercial Buildings

S.B. 463, enacted in April 2007, established a personal tax credit and a corporate tax credit for sustainable buildings in New Mexico. The tax credits apply to both commercial and residential buildings. Commercial buildings which have been registered and certified by the US Green Building Council at LEED Silver or higher for new construction (NC), existing buildings (EB), core and shell (CS), or commercial interiors (CI) are eligible for a tax credit. The amount of the credit varies according to the square footage of the building and the level of certification achieved, as indicated on the following chart:

Commercial Buildings

The New Mexico system benefits charge was replaced with the passing of the Efficient Use of Energy Act. 
As part of New Mexico's Electric Utility Industry Restructuring Act of 1999 the legislature created the Electric Industry System Benefits Fund for renewable energy, customer education, and low-income assistance. The fund is created through a charge of 0.03¢/kWh beginning January 1, 2002 and doubling in 2007. The charge is collected from all electric utilities, both private and public. The funds will support renewable energy up to $4 million to be used by school districts, cities, towns, villages, or counties. Renewable technologies

Xcel Energy offers Energy Design Assistance (EDA) to qualified Colorado business customers. EDA gives customers a comprehensive approach to energy and cost savings for businesses considering new construction or renovation projects. EDA services can be tailored to the unique needs of each business. Featured services include: energy consulting services and predictive energy modeling, free to participants; enhanced services, including help toward a green building certification and early analyses in areas such as daylighting, lighting, massing, and heating, ventilation and air conditioning (HVAC); construction rebates for a package of whole building energy opportunities from envelope, lighting, and cooling to unique opportunities

Xcel Energy's Residential Energy Efficiency Rebate Program provides incentives to install energy efficiency measures in Xcel service territory.