New Mexico Commercial Solar Incentives


Federal Solar Incentives:

Name:Federal Grant
Responsible Authority: US Department of Treasury
Eligibility: All Solar Projects
Description: Allows for the owner of a commercial photovoltaic system to recapture 30% of the system. Checks are to be issued by the treasury department within 60 days of system completion.
Limitations/Expiration: Applications must be submitted by 10/1/2011, after which the incentive will remain only as a tax credit.

Name: Accelerated Depreciation
Responsible Authority: IRS
Eligibility: All corporate owners of solar systems
Description: Allows corporate owners to depreciate a solar system under a 5 year MACRS schedule. The depreciable basis is equal to 85% of total system costs when using the before mentioned federal grant.
Limitations/Expiration: None

Name: Bonus Depreciation
Responsible Authority: IRS
Eligibility: All corporate owners of solar systems
Description: Allows corporate owners to depreciate 50% of the system's basis in year 1. The remainder of the system can be depreciated under the 5 year MACRS schedule, as mentioned above.
Limitations/Expiration: System must be placed into service by the end of 2009

New Mexico Incentives:

Name: Gross Receipts Tax Exemption
Responsible Authority: New Mexico Energy, Minerals, and Natural Resources Department/ New Mexico Taxation and Revenue Department
Eligibility: All solar systems
Description: Receipts from the sale and installation of solar energy systems may be deducted from gross receipts.
Limitations/Expiration: Exemption will be repealed in 2017

Name: New Mexico Renewable Energy Production Tax Credit
Responsible Authority: New Mexico Energy, Minerals, and Natural Resources Department/ New Mexico Taxation and Revenue Department
Eligibility Solar systems of at least 1MW capacity
Description: Provides a tax credit against the corporate income of a solar system owner per kwh of energy produced over a 10 year period. For solar energy, the credit begins at 1.5 cents in year one and escalates by .5 cents per year until it reaches 4 cents in year six at which time it deescalates by .5 cents a year until year ten. The credit is refundable if there is not a sufficient tax liability to write the credit off against.
Limitations/Expiration: Limited to the first 200,000 MWH produced by qualifying facilities per taxable year.

Name: Advanced Energy Credit
Responsible Authority: New Mexico Energy Department/New Mexico Taxation and Revenue Department
Eligibility Solar systems of at least 1MW capacity
Description: Allows for a 6% of system costs credit against withholding tax, gross receipts tax, personal income tax, or corporate income tax. Deduction is capped at $60M and can be carried forward up to 10 years. This is a new program.
Limitations/Expiration: Expires in 2015

Utility Incentives:

Name: PNM Large PV Program
Responsible Authority: PNM
Eligibility PNM customers with solar photovoltaic systems between lOkW and 1MW
Description: PNM will pay customers with on-site solar systems $.15 for every kilowatt hour produced and consumed for a period of 20 years. This payment is in exchange for the Renewable Energy Certificates produced by the solar system. PNM will pay an avoided cost net-metering fee for all excess energy produced by the system.
Limitations/Expiration: PNM has implemented this goal in order to meet the company's mandated requirements under the New Mexico Renewable Portfolio Standard. As the requirements are met, the program will no longer be necessary

Name: PNM Small PV Program
Responsible Authority: PNM
Eligibility Photovoltaic Solar Systems lOkW or less
Description: PNM will pay customers with on-site solar systems $.13 for every kilowatt hour produced for a period of 20 years. This payment is in exchange for the Renewable Energy Certificates produced by the solar system. PNM will credit excess energy produced by the system to future bills.
Limitations/Expiration: Currently none

Name: Xcel Energy Solar Rewards for Small Systems
Responsible Authority: Xcel Energy
Eligibility Xcel Energy customers with solar systems between 0.5kW and lOkW
Description: Xcel Energy will pay customers with on-site solar systems $.20 for every kilowatt hour produced for a period of 14 years. This payment is in exchange for the Renewable Energy Certificates produced by the solar system.
Limitations/Expiration: Currently none

Name: Xcel Energy Solar Rewards for Mid-Sized Systems
Responsible Authority: Xcel Energy
Eligibility Xcel Energy customers with solar systems between lO.1kW and lOOkW
Description: Xcel Energy will pay customers with on-site solar systems $.20 for every kilowatt hour produced for a period of 10 years. This payment is in exchange for the Renewable Energy Certificates produced by the solar system.
Limitations/Expiration: Currently none