New Mexico Tax Credits and Rebates

New Mexico Tax Credits and Rebates for Energy Efficiency and Greening Your Home

The American Recovery and Reinvestment Act of 2009 (ARRA) extends, expands and simplifies the federal income tax credits for homeowners who make energy efficiency home improvements.

The law extends the consumer tax benefits for another year, through 2010; triples the total available tax credit from $500 to $1,500; and increases the tax credit to 30 percent of the cost of each qualified energy efficiency improvement. The law also removes the cap on geothermal heat pumps and solar water heaters through 2016.

Rules and laws are always changing. Please check the websites below for the latest on tax credits and rebates from a variety of local, state and federal sources. Feel free to contact us with any questions: (505) 995-0195

PNM Rebates and Discounts

The PNM Energy Efficiency Program is a collection of customer offers that gives homeowners, business owners, and homebuilders discounts or rebates on products that save energy. http://www.pnm.com/rebates/home.htm

State of New Mexico

There are a number of state level tax rebates for renewable energies. Read about these at New Mexico Database of State Incentives for Renewables and Efficiency

Federal Tax Credits for Energy Efficiency

Introduction to Tax Credits

Introduction to Tax Credits
Consumer Tax Credit Information

Hybrid and Diesel Vehicle Tax Credit

Home Energy-Efficiency Improvement Tax Credit

Geothermal Heat Pumps, Solar Energy, and Fuel Cells

Additional Information

About Tax Credits
A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. Consumers can itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government.

Fuel-efficient vehicles and energy-efficient appliances and products provide many benefits such as better gas mileage –meaning lower gasoline costs, fewer emissions, lower energy bills, increased indoor comfort, and reduced air pollution.

In addition to federal tax incentives, some consumers will also be eligible for utility or state rebates, as well as state tax incentives for energy-efficient homes, vehicles and equipment. Each state’s energy office web site may have more information on specific state tax information.

Tax credits are now available for home improvements:

• Must be “placed in service” from January 1, 2009 through December 31, 2010
• Must be for taxpayer’s principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes qualify)
• $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016 must have a Manufacturer Certification Statement to qualify
• For record keeping, save your receipts and the Manufacturer Certification Statement:
• Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010
• If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.

More Information from Energy Star Program

Tax credits are available at 30% of the cost, up to $1,500, in 2009 & 2010 (for existing homes only) for:

• Windows and Doors
• Insulation
• Roofs (Metal and Asphalt)
• HVAC
• Water Heaters (non-solar)
• Biomass Stoves

Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for:

• Geothermal Heat Pumps
• Solar Panels
• Solar Water Heaters
• Small Wind Energy Systems
• Fuel Cells

For more information:

Energy Star Government Program

Tax Credit for Installing Energy Efficient Windows, Doors and Skylights