The southwestern state of New Mexico is one of the sunniest regions in the country. Because of this, locals can take advantage of the sun and use it as their alternative source for energy. But some people believe that installing solar in their homes can cost a lot of money. They think that they need to shell out thousands of dollars for each solar panel installed in their roofs.
But not everybody knows that there are local financing programs that can let them switch to solar without paying upfront. Also, solar will eventually help them save more cash in the long run. With the New Mexico solar tax credits program recently offered by the state, more people may jump into the renewable energy trend to cut down on their expenses.
Here are some of the rebates and incentives implemented in New Mexico for those who use solar energy.
Putting solar panels on your roof will allow you to get credit for all the power generated by your system. Fortunately, New Mexico locals can enjoy this privilege since the state implements a net metering incentive that allows everyone with solar gets credits for each excess electricity produced by their system. Then it can enable you to use those credits whenever the system fails to gather enough power during adverse weather conditions.
Tax Credits on Sustainable Buildings
As part of the New Mexico tax credits program, you can use your home or business establishment for tax deductions if it qualifies as a certified sustainable building. If you have a solar panel installed in your roof, you can apply for a certification from the US Green Building Council to qualify for the tax credit. The basis for the calculation of the credit amount is equivalent to the certification level that you will get. The maximum amount could reach up to $6.50 per square foot.
While installing solar in your property can increase the value of your home and provide it with better marketability, it can still get exempted from additional property taxes. It is one of the benefits that residents of New Mexico can enjoy if they choose to go solar. With the help of property tax exemption, taxpayers can choose to install a solar energy system without worrying about paying for a higher tax bill.
Federal Solar Tax Credit
In the US, all 50 states can get a Federal Investment Tax Credit to lessen the cost of the solar energy system. It accounts for 30% of the total value of the solar. Those who will buy their system can get this tax credit directly in their federal tax return. They can work with their solar specialist to calculate this and help their accountant to fill out the Form 5695 to avail of the credit.
All these incentives can help encourage people in New Mexico to install solar in their properties. They could consider spending from $14,535 to $19,665 in solar installation upfront. If they reduce the federal solar tax credit and other local incentives for this renewable type of energy, they can decrease the amount that they need to pay by thousands of dollars.