New Mexico Solar Tax Credits Bill Not Yet Dead in Water

New Mexico is bordered by Arizona, Colorado, Oklahoma, and Texas. It is the fifth-largest state in the United States by land area. It is rich in history, but also natural attractions that draw millions of visitors each year. Not many people know it, but the state is also a popular destination for skiers. There are about eight ski resorts here. The state has 15 national parks, including monuments, and five national forests. It is easy to get lost in its splendor, especially if you love the outdoors.

Another thing that New Mexico is known for is its efforts to harness the power of the sun to augment coal-sourced energy supply. As far as electricity rates go, New Mexico is ranking 25th in the country. But it could be better.

New Mexico Solar Tax Credits Bill Not Yet Dead in Water
New Mexico Solar Tax Credits Bill Not Yet Dead in Water

That is why a staunch advocate of alternative energy sources has revived the New Mexico solar tax credits bill. The proposal by Sen. Mimi Stewart passed the Corporations and Transportation Committee in the Senate, with the members voting 7-2.

The bill would allow commercial establishments and residents to benefit from the natural advantage of New Mexico, which is solar power.

The New Mexico solar tax credits bill, will help the residents of the state to invest more in solar energy. It is clean and renewable energy allowing people to cook their meals and heat their homes “without hurting the natural environment,” Sen. Stewart told Tao News.

She said any investment into solar energy “is an investment in our state’s future.”

Tax Credit

The Senate Bill 29 is also co-sponsored by Rep. Matthew McQueen of Santa Fe, New Mexico. According to the proposal, if a resident will invest in a photovoltaic or solar thermal system in their home, they can apply for a tax credit against their liability. The incentive will be credited to the income tax of the resident.

The incentive will be in effect for ten years on the taxable years from Jan. 1, 2020, until Jan. 1, 2030, when the law would have lapsed.

However, residents can only apply for tax credits for one time, and only if they do not exceed $6,000 for each household. Each application is also capped at 10% of the cost of the solar panel. The state has a budget ceiling of $10 million for the solar tax credit program.

Solar Energy for Everybody 

Sen. Stewart (D-Albuquerque) said that Senate Bill 29 is crucial legislation as it will drive down the cost of solar energy investment. She said that the residents, small entrepreneurs, and farmers she talked to all wanted clean energy. The senator believes that the bill will help achieve that. She also said in the same interview that making solar energy more affordable “makes sense,” and that it will also create more jobs in the sector.

However, it is still an uphill climb for the senators to hurdle the Senate Finance Committee on Capitol Hill. Sen. Stewart previously submitted the same proposed legislation in 2016. However, it expired before lawmakers could tackle it on the floor. She also revived the law in 2019, but it never reached the governor’s desk. New Mexico Gov. Michelle Lujan Grisham, meanwhile, threw her support for Senate Bill 29.

Jason Cohen

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