Solar energy has been the rage for several years now. Several residents of New Mexico have already gone solar, and many who haven’t maybe planned on doing so. People have several different opinions on the various benefits that the system gives you. So, to make things easy for you, here is a low down on how you can make the most of your New Mexico solar tax credits.
The residents of New Mexico enjoy several incentive schemes like the Sustainable Building Tax Credit Program, the Federal tax credit, and net metering. You need to make sure that you reap the benefits of all these programs to maximize your tax credits.
Use Those Renewable Energy Certificates to the Fullest
The Renewable Energy Certificate (REC) allows you to turn your every megawatt of solar power into an energy credit. This energy credit can be sold for cash. Utility companies buy solar power from you to meet their renewable energy goals. So, both of you are happy. They meet their target, and you make some extra cash on the side.
Enroll Into the Sustainable Building Tax Credit Program
If you own a residential solar system, you can make up to $13,000 in tax credits. Here’s how. You need to apply for the Sustainable Building Tax Credit Program. Once the Green Building Council certifies you, you can get as much as $6.50 per square foot tax credit. This is capped at residents up to 2000 square feet. Therefore, based on the size of your property, you can get a tax credit of up to $13,000.
The traditionally rural New Mexico is catching up with the urbanization trend, and solar energy is paving the way for it. To further this urbanization, the New Mexico government has provided these incentives to its citizens.
Use the Exemption on Property Taxes for Solar Residents
Residential properties in this Southwestern state that have solar panels installed can increase in value by up to $15,000. That said, you don’t pay more property tax for this added value through this exemption scheme. So, not only do you pay less tax but, if you are in the market to sell your home, you end up with an increased property value.
Get A Federal Solar Tax Credit on Your Income Tax
It is the icing on the cake. Apart from all the benefits mentioned above, the government gives you a bonus of installing a solar power system on your property. They give you a dollar to a dollar tax credit of up to 26% in 2020. You can use this credit to reduce your federal income tax.
Apart from all these New Mexico solar tax credits, power companies give you the benefit of net metering. Depending on the size of the solar panel, there may be days when your system generates more power than you can use. Rather than letting it go to waste, you can send this extra power back to the power company’s grid. You will get a credit for this on your next electricity bill. New Mexicans stand to gain hugely with its abundant sunshine.
On days when your system does not generate enough power, you can use the power company’s grid to power your home.
The government wants more citizens to switch to solar. New Mexicans stand to gain immensely from this due to the numerous benefits they get. The New Mexico solar tax credits not only help you save on your power bill but also allow you to make a difference in the environment.