Solar Energy Gross Receipts Tax Deduction

New Mexico Tax Incentive

program summary

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.

eligible technologies

Solar - Passive, Solar Photovoltaics, Solar Space Heat, Solar Thermal Electric, Solar Water Heat

program administrator

New Mexico Energy, Minerals and Natural Resources Department

program timeline

Program start date: 2007-07-01

program notes

2025-09-26 20:12:04: Annual review; no changes.
2023-12-05 20:33:30: Annual review; updated authority links. Removed information on Form RPD-41341, which no longer appears on the Taxation and Revenue Department's website.
2022-11-08 18:17:34: Annual review; updated links and contact information
2021-03-11 16:35:27: Annual review; no changes.
2020-07-31 15:17:38: Annual Review, no changes
2019-07-01 16:00:46: Annual review; no policy changes. Updated links.
2016-11-08 17:49:49: Annual review; no policy changes. Updated links.
2015-07-27 20:16:34: Annual review; no change to incentive amounts