With ample sunshine, numerous financial incentives, tax breaks and other financial benefits, there has never been a better time for New Mexico residents to go solar. Ready to start reaping the benefits of your own solar system? Read on to learn why installing a residential solar system in your home is a smart investment.
Homeowners who install a solar power system can take advantage of lower utility bills, tax incentives, tax credits and property tax exemptions. These financial benefits make installing a solar power system in your home not only more affordable but also a great investment.
New Mexico is lucky enough to have multiple tax credits: 1) a gross receipts tax exemption on your entire solar project; and 2) 10% State Tax Credit towards the purchase of a solar system (see bill here). Combined with the federal tax credit that saves you 26% on solar installation costs (ending soon), most New Mexico residents can benefit from a 43% credit.
It’s important to note that tax credits are not immediate savings when you pay for your new system. This tax credit may be spread across multiple years if necessary. Additionally, there are certain requirements that must be met to qualify for the credits.
To ensure that your new solar system will qualify for the tax credit, make sure it meets your local building code requirements and that the model you choose is certified by the Solar Rating and Certification Corporation. Solar Pro can guide you through meeting these requirements.
In addition to credits on the installation of your solar power system, property owners can also receive a 100% property tax exemption on solar panel systems. Home improvement projects like a solar power system typically increase the value of a home and this value typically results in an increase in property taxes. However, by taking advantage of the 100% property tax exemption, you can enjoy the benefits of your solar system without an increase in property taxes.