The installation of energy-saving and electrification measures in existing homes is now refundable for New Mexicans. It may be possible for some low-income homes to receive a state reimbursement for 100% of the cost of new windows, water heaters, or insulation upgrades. The Sustainable Buildings Tax Credit (SBTC) from 2015 was replaced by House Bill 15 (HB15), which was adopted by the New Mexico Senate in 2017.
The program assumes that offering tax credits for the installation of energy-efficient products in existing homes and commercial buildings will assist New Mexicans in reducing their monthly energy burden by lowering their utility bills, contributing to the fight against climate change by reducing emissions from operating the building or home, and enhancing community health by reducing the negative effects of emissions on health.
Homeowners and businesses are eligible for tax credits under HB15 for the installation of heat pumps, heat pump water heaters, windows or doors, improvements to insulation levels, and the conversion of a building or home into a charging station for electric vehicles.
The program offers up to 50% of the cost of energy-efficient renovations to homes and business owners. The project might qualify for a bigger tax credit if the applicant is a low-income person (a household making up to 200% of the federal poverty threshold, or about $34,000 per year), or if the house is being used as affordable housing. Businesses can get credit for reducing their energy consumption by 50%. Taxpayer will receive a tax refund if the credits are claimed as refundable tax credits based on the article posted by The Paper on January 04, 2023.
The application for tax credits has been uploaded by the New Mexico Department of Energy, Minerals, and Natural Resources. New Mexicans will be qualified as long as the purchase was made on or after January 1, 2021.
