The New Mexico Solar Tax Credit is a false promise

THERE IS something wrong with The New Mexico Solar Tax Credit. In 2021 many New Mexicans dug deeply into savings to install solar on their homes and businesses. One big inducement was the promised 10% tax credit offered by our state. How great to do something wonderful for the environment, save money on utilities and get a tax credit. We felt we were helping New Mexico attain energy independence.

Little did we know there was a cap on the amount of tax credits available: $8 million for all of 2021. How were citizens to know that by August 2021 the fund would be exhausted?

Many of us installed our solar after the fund was empty — ignorant to the fact no funds were left. We jumped through hoops to file for the credit through Energy, Minerals & Natural Resources Department (EMNRD), just to be told we were too late to get the credit and were denied.

We were also informed the application would not be carried forward and be eligible for the credit budgeted for 2022. Does this seem fair to all N.M. residents and businesses? How were we supposed to know that we had to get in line for the tax credit and those of us at the end would be denied? So much for encouraging energy independence in New Mexico.

State government says it is working toward energy independence and is touting renewable energy; yet failing to follow through with the promised credit because of a self-imposed cap just doesn’t make sense.

We contacted legislators Sens. Bill O’Neill and Brenda McKenna. They contacted EMNRD and confirmed there was nothing that could be done because the credit is given based on first-come, first-served in a given calendar year and once funds run out everyone else is out of luck, (per) NMAC 3.3.14.8C. As O’Neill expressed to us, “Although wellintentioned, this is not the way to help all consumers. We need to do better.”

New Mexico can do better. We strongly suggest the Legislature find a way to maintain funding for this important credit but without any cap that could unexpectedly and arbitrarily leave many people confused and on the hook for a bigger investment than they budgeted for. N.M. residents deserve what they are promised. We should be proud that so many New Mexicans are investing in solar and do all that we can to incentivize it year-round. BETSY CARLSON

Albuquerque CONNIE SHULTZ

Corrales