There are several tax Incentives available to homeowners who install solar panels. The largest is the federal tax credit, but they all add up to help the economics of the system.
The federal tax credit allows many people to take a credit of 26% of the total cost of the solar system. This is a “non-refundable” credit currently, which means you need to have a tax liability to take advantage of the credit. The credit can rollover to subsequent years if you don’t have enough tax liability the first year. Please check with your tax advisor to be sure you can take advantage of this credit.
Many New Mexicans can take advantage of an additional 10% state tax credit, capped at $6,000. There are more requirements for this credit and it is also “non-refundable” so you must check with your tax advisor to be sure you can take advantage of this credit also.
An additional benefit of solar is that there is no Gross Receipts Tax. The price you see on the proposal is the full price you will have to pay for the system.
When installing solar panels, the value of your home will increase. A Property Tax exemption in both New Mexico and Texas will exempt the additional value of your home created by installing Solar Panels. Simply put…Home value will increase, Property tax will not.
Please remember that the state and federal solar tax credits are not guaranteed at the time of signing a solar contract. You MUST consult with your tax advisor to see if you qualify.