Commercial & Industrial Solar

What We Do

Solar Farms

Battery Energy Storage Systems

Solar Carports

EV Chargers

Community Solar

Smartflower's

Agrivoltaics

Public Works

Maintenance Services

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For enterprises who want climate-aware solutions to power their needs.

OE Solar offers emissions-free energy solutions to help save the environment and your money.

OE Solar is an engineering, procurement, and construction (EPC) contractor operating out of Albuquerque, New Mexico. We work with commercial and industrial clients across the Southwest to reduce and stabilize electricity costs through solar, solar-plus-storage, and standalone storage projects.

FINANCING

We understand you want to reap the benefits of solar without having to use your working capital. OE Solar understands as we are a business too.

ENGINEERING

With 14 years of Industry experience and the licensing and project portfolio to prove we care about craftmanship and design of your Solar PV System.

PRODUCTION

Installations are performed by certified installers and licensed electricians. The production of the solar PV system is as important as the aesthetics.

The Ever-Changing Tax Landscape

OE Solar knows you're not an expert in Solar Tax Credits, that's why you work with us. This does not mean that we know everything there is to know about it, but we stay abreast to the new guidance provided by the IRS to keep your company in compliance with the tax savings we are modeling for you. We work with your CPA, who understands your exact business and tax situation, to capture as many credits possible to make the economics of the system benefit your bottom line.

With OE Solar extensive experience and new Joint Venture we can help you transform your land into a power producing energy farm that helps the community. With a farm that is over 1MW in size there are Tax Credits that can be taken to help the project become more economically feasible. See ITC Tax Adders below.

At OE Solar, we prioritize adherence to certified payroll and Apprenticeship program guidelines, ensuring that our projects meet the necessary criteria to confidently apply for the 30% federal ITC tax credit. With over a decade of experience working with government apprenticeship programs and certified payroll requirements for public works, we leverage this expertise to fulfill the ITC requirements, allowing our customers to qualify for the 24% adder. When combined with the standard 6%, this adds up to the 30% tax credit advertised by our competitors.

OE Solar is already in compliance with these requirements, ensuring that in 2024, you won't miss out on substantial savings. Our specialization in Commercial and Government Public Works projects makes our position in the market more crucial than ever.

Solar Tax Incentives

INCENTIVES TO CONSIDER

10% NM Credit up to $6,000

The tax credit is available for up to 10% of the equipment, materials, and labor costs of a solar energy system, which may not exceed $6,000. dollars.

New Mexico taxpayers—including individuals, corporations, agricultural enterprises, and federally recognized tribes with leasehold interests—may be eligible for a state income tax credit of up to 10% (capped at $6,000) for installing a certified solar energy system on their property. The credit is based on net costs, excluding disallowed expenses, and the system’s fund year is determined by the date of final inspection by a building code authority.

ITC - Investment Tax Credit

The Investment Tax Credit (ITC) is a cornerstone federal incentive for solar energy systems in the United States. It allows individuals and businesses to deduct a percentage of the cost of installing a solar energy system from their federal taxes. As of 2025, the ITC remains one of the most widely used and impactful clean energy tax credits.

While the PTC provides a credit based on electricity production, the Investment Tax Credit (ITC) offers a credit based on a percentage of the upfront investment cost. As of 2025, the ITC remains at 30% for eligible solar projects. Project developers can choose between the PTC and ITC, depending on which provides greater financial benefit for their specific project

Credit Value

The base ITC is 30% of the total project cost for eligible systems.
This includes equipment, labor, permitting, and certain soft costs.
There is no dollar cap on the amount that can be claimed.

Bonus credits may apply that increase the ITC up to 50% in certain cases:

+10% for meeting domestic content requirements
+10% for projects in energy communities (e.g., brownfields, former coal towns)
+10% for projects on low-income property or with qualified LMI benefits (under § 48(e))

Eligibility

Applies to both residential (Section 25D) and commercial/utility-scale (Section 48) systems
Projects must begin construction by the applicable IRS guidance deadlines to claim the credit
For commercial systems, any unused portion of the credit can be carried forward for 20 years

Prevailing Wage & Apprenticeship Requirements

For projects over 1 MWac, to qualify for the full 30% ITC, developers must:

Pay prevailing wages to laborers and mechanics
Meet minimum thresholds for hiring apprentices in construction and installation

Failing to meet these conditions may reduce the ITC to 6%, unless the project is exempt (e.g., <1 MW or under safe harbor rules).

Transferability

Starting in 2023, Section 6418 allows project owners to sell the ITC to unrelated third parties for cash (non-taxable), providing liquidity for developers.
This opens new financing options for entities without enough tax liability to use the credit themselves.

Stacking with Other Incentives

The ITC can be claimed alongside:

MACRS depreciation (for businesses)
Local/state incentives
Federal and state production-based incentives (PTC, where applicable)
Inflation Reduction Act (IRA) grants or rebates, though those may affect eligible cost basis

Modified Accelerated Cost Recovery System

The Modified Accelerated Cost Recovery System (MACRS) is a key federal tax incentive that allows businesses—including solar project owners—to recover the cost of certain capital assets through depreciation deductions over a specified period. In the case of solar energy property, MACRS plays a major role in improving project economics by accelerating depreciation and thus reducing taxable income.

Depreciation Class: 5-Year MACRS

Bonus Depreciation: 60% in 2024 (phasing down)

Eligible Property: Solar PV, inverters, racking, batteries (if integrated), installation

ITC Basis Reduction: Depreciation basis = Cost – 50% of ITC

Benefit: Reduces taxable income and increases cash flow

Eligible Property

Solar energy equipment qualifies as 5-year property under MACRS when:

It's used in a trade or business (not personal use),
It's placed in service during the tax year, and
It’s used to generate, distribute, or store solar energy.

This includes:

Solar photovoltaic (PV) panels
Inverters, racking, wiring
Batteries integrated with solar (under certain conditions)
Installation labor (if capitalized into the cost of the system)

The Tax Cuts and Jobs Act (TCJA) and the Inflation Reduction Act (IRA):

100% bonus depreciation is available for eligible solar systems placed in service before January 1, 2023.
Phased down after that:
- 80% in 2023
- 60% in 2024
- 40% in 2025
- 20% in 2026
- 0% in 2027 (unless extended or modified)

Bonus depreciation allows the owner to depreciate the entire eligible basis in the first year, significantly enhancing early-year cash flow.

Calculating Depreciable Basis with ITC

When the ITC is claimed, the basis for depreciation must be reduced by 50% of the credit. For example:

Example:

System Cost: $1,000,000
ITC (30%): $300,000
Basis reduction: $150,000 (50% of ITC)
MACRS basis = $850,000

That $850,000 is then depreciated using MACRS or bonus depreciation as applicable.

Why MACRS Is Valuable for Solar

MACRS is a non-cash deduction, meaning:

It lowers taxable income,
Increases after-tax cash flow,
Enhances project return metrics like IRR and NPV,
And is often used in tax equity finance structures (alongside ITC or PTC).

Production Tax Credit PTC

The federal Production Tax Credit (PTC) for solar energy, as of 2025, is governed by the Inflation Reduction Act (IRA) and is codified under Section 45Y of the Internal Revenue Code. This "tech-neutral" credit applies to any electricity-generating facility that produces zero greenhouse gas emissions, including solar photovoltaic (PV) systems.

To qualify for the PTC:

The facility must generate electricity with zero greenhouse gas emissions.
Construction must commence on or after January 1, 2025.
The facility must be placed in service after December 31, 2024.
The taxpayer must not have claimed the legacy PTC or ITC for the facility.

Credit Value

The base credit is 1.5 cents per kilowatt-hour (kWh), adjusted for inflation.
For projects not meeting prevailing wage and apprenticeship requirements, the credit is reduced to 0.3 cents per kWh.

As of 2025, with inflation adjustments, the credit is approximately 2.6 cents per kWh. SEIA

Duration

The credit is available for the first 10 years of electricity production from the facility.

Transferability

The IRA allows for the transfer of the PTC to unrelated parties, providing flexibility in financing structures.

No Gross Receipts Tax on Solar PV

In New Mexico, solar energy systems and their installation are generally exempt from Gross Receipts Tax (GRT) when certain conditions are met. Under New Mexico Statutes Annotated (NMSA) 1978, § 7-9-54.1, receipts from selling and installing certain solar energy systems are deductible from gross receipts, which effectively removes them from GRT taxation.

Under Section 7-9-112 of the New Mexico Statutes, businesses can deduct receipts from the sale and installation of qualifying solar energy systems from their gross receipts. This deduction applies to systems that provide space heating, hot water, or electricity and includes:

Photovoltaic (PV) panels and associated equipment
Solar thermal collectors

The deduction encompasses both the sale of the equipment and the labor involved in installation, provided the components are essential to the system's operation and are used directly and exclusively for that purpose.

CommercialCont

Developing New Energy Infrastructure

Commercial Complexes, Apartments, Retail Spaces.

We guide business owners through the options and incentives available to transition their facilities to clean energy and in developing new energy revenue streams.

Solar Carports & EV chargers

We offer installation services for electric vehicle chargers and solar carports, accommodating various brands and styles to cater to your organization's specific requirements. Our specialization lies in providing support for electric fleet vehicles, implementing solar carports, and setting up pay-per-use EV charging stations, including Charge Point DC fast Chargers and Tesla Chargers. We also collaborate with apartment complexes and multifamily complexes to ensure they are well-informed about PNM Rebates.

COMMUNITY SOLAR

Learn how you can reduce your electric bill and contribute to solar in New Mexico without installing it on your roof!

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OE Solar offers a comprehensive spectrum of services for clean energy construction projects including solar PV, energy storage systems, and EV charging stations. From beginning to end OE Solar handles your project with quality and care.

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Commercial & Industrial Solar

What We Do

For enterprises who want climate-aware solutions to power their needs.

10% NM Credit up to $6,000

ITC - Investment Tax Credit

Credit Value

Eligibility

Prevailing Wage & Apprenticeship Requirements

Transferability

Stacking with Other Incentives

Modified Accelerated Cost Recovery System

Eligible Property

The Tax Cuts and Jobs Act (TCJA) and the Inflation Reduction Act (IRA):

Calculating Depreciable Basis with ITC

Why MACRS Is Valuable for Solar

Production Tax Credit PTC

No Gross Receipts Tax on Solar PV

Developing New Energy Infrastructure

Expansive Solar Farming for Large Operations.

Commercial Complexes, Apartments, Retail Spaces.

Solar Carports & EV chargers

Schools, Sport Facilities and University Buildings

Agrivoltaics

COMMUNITY SOLAR

Contact

Commercial & Industrial Solar

What We Do

For enterprises who want climate-aware solutions to power their needs.

ITC - Investment Tax Credit

​

Credit Value

Eligibility

Prevailing Wage & Apprenticeship Requirements

Transferability

Stacking with Other Incentives

Developing New Energy Infrastructure

Commercial Complexes, Apartments, Retail Spaces.

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COMMUNITY SOLAR

Contact