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New Mexico

New Mexico

Incentives/Policies for Renewables & Efficiency

Printable Version
Sustainable Building Tax Credit (Personal)   

Last DSIRE Review: 08/06/2014
Program Overview:
State: New Mexico
Incentive Type: Personal Tax Credit
Eligible Efficiency Technologies: Comprehensive Measures/Whole Building
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Daylighting
Applicable Sectors: Commercial, Residential, Nonprofit, Multi-Family Residential
Amount:Varies based on the square footage of the building and the certification level
Carryover Provisions:Excess credits may be carried forward for up to 7 years
Program Budget:$4 million for residential buildings (annual); $1 million for commercial buildings (annual)
Start Date:1/1/2007
Expiration Date:12/31/2016
Web Site: http://www.emnrd.state.nm.us/ECMD/CleanEnergyTaxIncentives/SBTC.h...
Authority 1:
Date Enacted:
Date Effective:
Expiration Date:
N.M. Stat. ยง 7-2-18.19
04/02/2007, subsequently amended
01/01/2007
12/31/2016
Authority 2:
NMAC 3.4.16, et seq.
Authority 3:
Date Enacted:
Expiration Date:
SB 14
04/01/2013
12/31/2016
Summary:

Note: As of May 23, 2014, no residential funds are available for the tax credit in years 2014, 2015, or 2016, and no commercial funds are available for the tax credit in 2014. Commercial funds for 2015 and 2016 are still available.  

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:

LEED Rating Level Occupied Sq. Footage Tax Credit/Sq. Ft.
LEED-NC Silver First 10,000 $3.50
  Next 40,000 $1.75
  Over 50,000 and up to 500,000 $0.70
LEED-NC Gold First 10,000 $4.75
  Next 40,000 $2.00
  Over 50,000 and up to 500,000 $1.00
LEED-NC Platinum First 10,000 $6.25
  Next 40,000 $3.25
  Over 50,000 and up to 500,000 $2.00
LEED-EB/CS Silver First 10,000 $2.50
  Next 40,000 $1.25
  Over 50,000 and up to 500,000 $0.50
LEED-EB/CS Gold First 10,000 $3.35
  Next 40,000 $1.40
  Over 50,000 and up to 500,000 $0.70
LEED-EB/CS Platinum First 10,000 $4.40
  Next 40,000 $2.30
  Over 50,000 and up to 500,000 $1.40
LEED-CI Silver First 10,000 $1.40
  Next 40,000 $0.70
  Over 50,000 and up to 500,000 $0.30
LEED-CI Gold First 10,000 $1.90
  Next 40,000 $0.80
  Over 50,000 and up to 500,000 $0.40
LEED-CI Platinum First 10,000 $2.50
  Next 40,000 $1.30
  Over 50,000 and up to 500,000 $0.80

Residential buildings certified as sustainable homes can also qualify for a tax credit. Eligible residential buildings include single-family homes and multi-family homes which are certified as either Build Green NM Silver or higher or LEED-H Silver or higher as well as Energy Star-certified manufactured homes. 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:

Residential Buildings:

Rating Level Occupied Sq. Footage Tax Credit/Sq. Ft.
LEED-H Silver or Build Green NM Silver First 2,000 $5.00
  Next 1,000 $2.50
LEED-H Gold or Build Green NM Gold First 2,000 $6.85
  Next 1,000 $3.40
LEED-H Platinum or Build Green NM Emerald First 2,000 $9.00
  Next 1,000 $4.45
Energy Star Manufactured Home Up to 3,000 $3.00

To receive the tax credit, the building owner must obtain a certificate of eligibility from the Energy, Minerals and Natural Resources Department after the building project has been completed. The Department will only grant certificates in any given calendar year until the equivalent of $1,000,000 worth of certificates for commercial buildings and $4,000,000 worth of certificates for residential buildings have been awarded in that calendar year. Further, no more than $1,250,000 of the annual amount for residential buildings can be applied to manufactured housing. Multi-family residential buildings are classified as residential buildings for the purpose of this tax credit. However, if the aggregate limit for residential tax credits has been reached for the year, the Department may issue certificates of eligibility under the annual aggregate limit for commercial buildings to owners of multi-family dwelling units provided that aggregate limit has not been reached as well.

The taxpayer must then present their certificate of eligibility to the Taxation and Revenue Department to receive a document granting the Sustainable Building Tax Credit. If the total amount of a Sustainable Building Tax Credit is less than $100,000, a maximum of $25,000 can be applied to the taxpayer's income tax in that year and the next 3 years as needed depending on the amount of the credit. If the credit is more than $100,000, the taxpayer can claim the credit in increments of 25% in each of the 4 taxable years, including the year in which the credit is approved. If a taxpayer's tax liability is less than the amount of credit due, the excess credit may be carried forward for up to 7 years.

The tax credit is transferable for nonprofits. Although nonprofits are not taxed by the state, they can apply for the certificate of eligibility and sell the credit to an entity that does pay taxes. Additionally, people and entities who do not owe enough taxes to take full advantage of the tax credit also have the option of selling the tax credit.

A solar thermal system or a photovoltaic system may not be used as a component of qualification for this tax credit if a tax credit has already been claimed for it under the Solar Market Development Tax Credit


 
Contact:
  Public Information
New Mexico Taxation & Revenue Department
Administrative Services Division - Joseph Montoya Bldg
P.O. Box 630
1100 South St. Frances Dr
Santa Fe, NM 87504-0630
Phone: (505) 827-0369
Phone 2: (505) 827-0700
E-Mail: poffice@state.nm.us
Web Site: http://www.tax.state.nm.us/
 
  Ken Hughes
New Mexico Energy, Minerals and Natural Resources Department
Energy Conservation and Management Division
Phone: (505) 476-3320
Fax: (505) 476-3322
E-Mail: ken.hughes@state.nm.us
Web Site: http://www.emnrd.state.nm.us/ecmd/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.