SUSTAINABLE BUILDING TAX CREDIT
ECMD manages the Sustainable Building Tax Credit (SBTC), which benefits New Mexicans by incentivizing builders to build energy-efficient, healthy, comfortable homes.Â
OE Solar is not a tax professional, will not give tax advice, and cannot guarantee any of the incentives that are highlighted on our site.
Sustainable Building Tax Credit
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The State of New Mexico's Energy, Minerals & Natural Resources Department (ECMD) manages the Sustainable Building Tax Credit (SBTC), which benefits New Mexicans by incentivizing builders to build energy-efficient, healthy, comfortable homes. The Sustainable Building Tax Credit (SBTC) reflects the state’s intention to incentivize cutting-edge sustainable building practices, as well as the use of energy-efficient products.
There are two types of tax credits available under the program—one for installation of certain energy-efficient products in existing residences and another for commercial renovation and new construction projects.
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Before accessing the online application for energy-conserving products, please read the application instructions and checklist to verify you have all of the required documentation ready for upload with your application. Energy-Conserving Products include certain air source and ground source heat-pumps, heat pump water heaters, windows, doors, insulation upgrades, and electric vehicle charging equipment
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These credits are available to New Mexico taxpayers filing either a personal income or corporate tax return.
The credits for installing energy-conserving products went into effect on January 1, 2021, and applications for those credits can be submitted now via this online portal for products.
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The credits for new construction or large commercial renovations went into effect on January 1, 2022, and applications for those credits can be submitted now via this online portal for new construction or commercial renovation.
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Please note that the Legislature placed annual program caps on the total amount of tax credits that ECMD can approve under this program. So, it is important to submit your application as soon as possible. There also are caps on the amount of tax credit that can be awarded for each energy-conserving product installed. The caps are higher for products installed in affordable housing units or dwelling occupied by low-income residents. See details on those caps here
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However, there are no caps on credits individual taxpayers can claim for their construction projects.
The table below outlines the annual fund caps for the program.
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