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Solar Energy Gross Receipts Tax Deduction

Eligibility 
Commercial
Construction
Residential
Installers/Contractors
Retail Supplier
Savings Category 
Solar - Passive
Solar Water Heat
Solar Space Heat
Solar Thermal Electric
Solar Photovoltaics
Program Info
Sector Name 
State
Administrator 
New Mexico Energy, Minerals and Natural Resources Department
Website 
http://www.emnrd.state.nm.us/ecmd/CleanEnergyTaxIncentives/SolarGrossReceiptsExemption.html
State 
New Mexico
Program Type 
Sales Tax Incentive
Rebate Amount 

100% of gross receipts from sale and installation of solar energy systems, dark-colored water tanks, and non-vented trombe walls

New Mexico has a gross receipts tax structure for businesses instead of a sales tax. Businesses are taxed on the gross amount of their business receipts each year before expenses are deducted. Revenue generated by the sale and installation of solar systems used to provide space heat, hot water, or electricity to the property on which it is installed may be deducted from gross receipts before the gross receipts tax is calculated. Dark-colored water tanks exposed to sunlight, including all equipment necessary for the installation and operation of the water tank as a part of the overall water system of the property, as well as a non-vented trombe wall, including all equipment necessary for the installation and operation of the trombe wall, are also eligible for this tax deduction.

The seller must have a signed copy of Form RPD-41341 to claim the deduction or other evidence acceptable to EMNRD that the service or equipment was purchased for the sole use of the sale and installation of a qualified energy system.

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