Rep. Daymon Ely Aims to Expand Solar Energy Market in New Mexico
Proposed Legislation Would Increase Solar Tax Credits for Low-Income Families, Businesses
Santa Fe, NM – Rep. Daymon Ely (D-Corrales), as part of his commitment to grow the renewable energy market in New Mexico, is proposing legislation that would increase the solar tax credit for low-income families and expand the credit to include businesses.
“By expanding the solar energy market in our state we can spur economic activity and create good jobs while at the same time reducing climate pollution and protecting our environment,” said Rep. Ely. “We need to look at our state’s strengths to help get us back on track. There is no reason why we shouldn’t be the solar capital of the country and legislation such as this will help get us there.”
House Bill 193 would increase the solar tax credit from 10% to 15% of the cost of purchase and installation for families making less than $43,871 per year. This legislation aims to lower the barriers for low-income families who often cannot afford the upfront costs of going solar. Rep. Ely hopes that with the increased credit, more hard-working New Mexican families can enjoy the benefits of solar energy, including adding value to their homes and saving on utility bills.
The bill also introduces a solar tax credit for businesses, which previously did not exist. The new “solar market development corporate income tax credit” would allow businesses to claim 10% of the purchase and installation cost of a solar energy system.
The bills will also raise the caps on both the personal and corporate solar tax credits, to $5 million and $20 million, respectively, in the hopes of encouraging more households and business-owners to take advantage of it.
As a credit, taxpayers deduct 10% or 15% of the cost of their system directly off of their tax bill, rather than their taxable income.