Solar tax credit bill makes its way through New Mexico legislature

New Mexico legislators are reviewing a bill to bring back a solar energy tax credit which ended in2016.

Senate Bill 29, already passed by the state Senate was approved this week in a House Committee.

Senate Bill 29, sponsored New Mexico Sen. Mimi Stewart (D-17) would bring back a tax credit for energy consumers who install solar panels at their homes, which expired in 2016 according to the Carlsbad Current Argus.

The bill passed the House Taxation and Revenue Committee, Monday, on a 6-5 vote. The credit would be applicable for eight years starting in 2020, capped at $6,000.

It would allow homeowners who install rooftop solar panels at their properties to apply for a tax credit of 10 percent of the purchase and installation.

Stewart said about $9 million was budgeted for the tax credit.

She said when the solar tax credit ended in 2016, the state lost about 25 percent of its solar companies from about 3,000 that year to the present number of 2,168 companies.

She said bringing back the tax credit will replace thousands of jobs.

“This clearly helped with the jobs category in this industry,” Stewart said. “It’s an individual tax credit for consumer, small business, small agriculture. I see this as needed right now.”

Amid the implantation of the Energy Transition Act, passed last year and requiring New Mexico to be on 100 percent carbon-free power by 2045, Stewart said the bill would allow individuals to get in on solar as large-scale utility companies shift to renewable energy.

Source: Carlsbad Current Argus