October 25, 2022

New Mexicans can apply for tax credits for energy efficiency upgrades

pixabay

A new website allows residents who have invested in energy efficiency upgrades for their homes or businesses to apply for tax credits. 

The state’s Energy, Minerals and Natural Resources Department’s Energy Conservation and Management Division announced the website’s launch on Monday.

In 2020, the state legislature passed legislation that updated the sustainable building tax credits. The amendments included increased tax credits for low-income residents or landlords that offer affordable housing for upgrades that reduce energy consumption, which can lead to lower utility bills. 

Low-income residents or upgrades to affordable housing are eligible for larger tax credits. For example, an air-source heat pump installed by a low-income household is eligible for $2,000 of tax credits compared to $1,000 if it is installed at a house that doesn’t meet those low-income requirements.

The tax credits are available for projects like heat pumps, energy-efficient windows and doors, high-quality insulation and charging equipment for electric vehicles. Upgrades must have been made after Jan. 1, 2021 to qualify.

“We are really pleased to launch this website during National Energy Awareness Month,” Energy Conservation and Management Division Director Louise Martinez said in a press release. “This is the perfect time to call attention to the need for everyone to be part of the effort to improve the quality of life for all citizens through the reduction of energy use. Homeowners who live in energy-efficient homes are saving up to fifty percent on their utility bills annually – money that goes back into local communities.”

The website includes instructions and a checklist to help applicants navigate through the process and inform them of what documentation is needed.

That documentation includes proof that the applicant is eligible for the tax credit, identification of what upgrades were done, how much those products cost and how much it cost to install them.

Applications may take three to four weeks to process.