Bill to Re-instate Solar Tax Credit Passes First Committee

Sen. Mimi Stewart’s legislation to re-instate the solar tax credit in New Mexico, which Gov. Michelle Lujan Grisham has listed among her legislative priorities this session, passed the Senate Corporations and Transportation Committee on Monday, by a vote of 7-2.

“Solar energy is clean, renewable energy that allows families to heat their homes and cook their meals without hurting the natural environment,” Stewart said. “The solar tax credit will help more New Mexico families invest in solar—which is an investment in our state’s future.”

SB 29, which Stewart is cosponsoring with Rep. Matthew McQueen, specifically allows for New Mexico taxpayers who install a photovoltaic energy system in their home, small business or small farm after January 1, 2020, to apply for a tax credit up to 10 percent of the cost of the system they installed. The tax credit would not exceed $6,000 per household and the annual budget cap for the credit is $10 million. The credit will be available to consumers for 10 years, sun-setting in 2030.

“Making solar energy more affordable for New Mexicans makes sense,” Stewart said. “Families, farmers and small-business owners want to invest in clean, renewable energy. This straightforward tax credit will help them do that.”

New Mexico previously had a similar solar tax credit, but it expired at the end of 2016 and the Legislature has not re-instated it. Stewart sponsored legislation last session to reinstate the solar tax credit, but, despite support, it didn’t make it to the governor’s desk to be signed into law.

“It’s time to put the solar tax credit back in place,” Stewart said. “This investment in solar energy will allow thousands more New Mexicans to install solar energy systems. That means lower energy for bills for them and more jobs in the clean-energy economy.”

SB 29 now goes to the Senate Finance Committee for consideration.