Bill > SB13

This bill modifies the Solar Market Development Tax Credit, which provides a tax credit for individuals and small businesses in New Mexico who purchase and install solar thermal systems (for heating water or space) or photovoltaic systems (for generating electricity). The key changes involve a gradual reduction in the percentage of costs eligible for the tax credit over several years, starting with 10% for systems installed before January 1, 2019, and decreasing by one percent each year until it reaches 5% for systems installed before January 1, 2025. The maximum credit allowed per system remains $9,000, and the total annual amount of tax credits the state can issue for photovoltaic systems is increased from $3 million to $5 million, while the limit for solar thermal systems is removed. The bill also clarifies that these credits cannot be used for swimming pool or hot tub heating systems, or for commercial or industrial photovoltaic systems not connected to the grid, with an exception for agricultural systems on farms or ranches. Unused portions of the credit can still be carried forward for up to ten years.