Listed below are nonrefundable credits that are available on your New Mexico return:
New Solar Market Development Tax Credit
A taxpayer who purchases and installs a qualified photovoltaic or solar thermal system in a residence, business, or agricultural enterprise in New Mexico owned by that taxpayer, or after May 15, 2024, by a federally recognized Indian nation, tribe, or pueblo and held in leasehold by that taxpayer may claim the credit. The photovoltaic or solar thermal system must be purchased and installed on or after March 1, 2020, but before December 31, 2031.
For taxpayers who claimed this credit on their 2020 and 2021 return only may carry an existing credit forward for the maximum of five consecutive years from the first eligible year the certificate was issued.
NOTE: This credit is nonrefundable for taxpayers who claimed the credit prior to January 1, 2022. For taxpayers who claim the credit on or after January 1, 2022, the portion of the credit that exceeds the tax liability will be refunded to the taxpayer.
Rural Health Care Practitioners Tax Credit
A taxpayer may be eligible to claim this credit if all of the following are true:
- You file a New Mexico personal income tax return.
- You are not a dependent of another individual.
- You are an eligible health care practitioner.
- You have provided health care services in New Mexico in a rural health care underserved area.
The maximum allowed credit is $5,000 for physicians, osteopathic physicians, dentists, psychologists, podiatric physicians, and optometrists who qualify. All other health care positions qualify for a credit in the amount of $3,000.
NOTE: The taxpayer must meet the qualifying hours below to claim this credit.
- 1,584 hours to qualify for the full credit.
- 792 hours, but less than 1,584 hours, to qualify for one half of the full credit amount.
This credit is nonrefundable but the amount that exceeds your tax liability for the tax year that you are claiming the credit can be carry forward for three consecutive tax years.
New Sustainable Building Tax Credit
A credit is available for construction in New Mexico of a sustainable building, for renovation of an existing building into a sustainable building, or for permanent installation of manufactured housing that is a sustainable building, regardless of where the housing is manufactured.
The credit is available for residential and commercial buildings after the construction, installation, or renovation of the sustainable building is complete.
You may claim the credit for tax years from January 1, 2017 through December 31, 2024.
NOTE: To qualify for the credit, the building must have achieved a silver or higher certification level in the Leadership in Energy and Environmental Design green building rating system or the Build Green NM rating system.
A taxpayer with qualified construction or renovations made after January 1, 2017 but ending on or before December 31, 2026, should contact the New Mexico Energy, Minerals and Natural Resources Department (EMNRD) to certify your eligibility to claim the New Sustainable Building Tax Credit.
This credit is nonrefundable but it can be carry forward for seven years from the first eligible year that the credit is approved to be claimed.
2021 Sustainable Building Tax Credit
A credit is available for the construction in New Mexico of a sustainable building, the renovation of an existing building, the permanent installation of manufactured housing, regardless of where the housing is manufactured, that is a sustainable building or the installation of energy conserving products to existing buildings in New Mexico. You may claim the credit for tax years prior to January 1, 2028.
If the certification level for a sustainable residential building is awarded on or after January 1, 2022, EMNRD may issue a certificate of eligibility to a building owner who is:
- The owner of the sustainable residential building at the time the certification level for the building is awarded, or
- The subsequent purchaser of a sustainable residential building to which no tax credit has been previously claimed.
NOTE: To be eligible, the taxpayer must obtain a Certificate of Eligibility issued by the Energy, Minerals and Natural Resources Department.
This credit is nonrefundable. However, if the taxpayer is considered low income, the excess credit will be refunded to the taxpayer.
To be considered a low income taxpayer, the annual household adjusted gross income must be equal to or less than 200% of the federal poverty level.
Where do I enter?
- State Section
- Credits
- RPD-41317: Solar Market Development Tax Credit, RPD-41326: Rural Health Care Practitioner Tax Credit Menu, RPD-41329: Sustainable Building Tax Credit, OR
- Additional nonrefundable credits