The credit
| Item | Rule (EMNRD) |
|---|---|
| Amount | 10% of equipment, materials and labor |
| Cap | $6,000 per taxpayer |
| Systems | Solar thermal or photovoltaic, on homes, businesses or farms; PV with a battery system |
| Install years | 2025 through 2031 |
| Apply | Within one calendar year after installation; a 2026 install has until 31 December 2027 |
| Yearly cap | $30 million statewide, first come, first served |
| Refundable | Yes, tax years 2022 and later |
| Transferable | Yes, notify TRD within 10 days on Form TRD-41417 |
The $6,000 cap is reached on a $60,000 system. The middle half of Albuquerque solar firms' usual job ran $14,430 to $25,883, so nearly every home system gets the full 10% without hitting the cap.
The $30 million cap is the risk. EMNRD says that "once the $30m cap is met, no further credits are issued for that year." It raised the cap from $12 million in the 2024 legislative session, and the supplemental credit for 2020 to 2023 installs has ended. EMNRD's page uses both "installation deadline" and "application deadline" for the 31 December date, so confirm the date with EMNRD if you are close to it.
How to claim it
- Install the system and keep the proof of purchase and installation, the system specifications and compliance documents.
- Apply to EMNRD for certification. If approved, EMNRD issues a Certificate of Eligibility.
- Claim the credit on your New Mexico income tax return through the Taxation and Revenue Department's TAP system.
What it means for hiring an installer
- The paperwork is yours. The taxpayer applies, not the installer. Before the last payment, collect the itemized invoice, the equipment spec sheets and the closed City of Albuquerque permits, because those are the documents EMNRD asks for.
- Itemize the battery. If the quote includes a battery, have it priced as part of the PV system on the invoice.
- Close the permit. Albuquerque solar needs building and electrical permits (Albuquerque solar permit); a permit that never reaches final leaves a gap in the compliance documents.
- Installer longevity. EMNRD's FAQ covers contractors who are "unresponsive or out of business". Our data has 21 solar firms with five or more Albuquerque permits that filed none in the last 12 months.
Compare Albuquerque solar installers by permit record →
What 1,973 Albuquerque solar permits show
| Measure | Albuquerque solar |
|---|---|
| Permits on homes, October 2023 to September 2026 | 1,973 |
| Firms | 60 |
| Usual filed value | $16,363 |
| Busiest firms, last 12 months | Positive Energy Solar (41), Epex Home Performance Solar Works Energy LLC (36) |
| Share held by the five busiest | 70.9% |
| Finished (permits a year or more old) | 83.4% |
| Firms with 5+ permits, none in the last 12 months | 21 |
| Busiest / quietest month | October / April |
Only 15 of the 60 firms filed an Albuquerque solar permit in the last 12 months of data, and the two busiest filed 41 and 36 permits in that time. That matters for a credit claimed up to a year after install: pick an installer that is still filing permits, and check that its permits reach final (83.4% citywide).
Check it in five minutes
- Open our Albuquerque solar list and check the installer filed permits in the last 12 months.
- Compare the quote with Albuquerque solar costs.
- Put the EMNRD application date in your calendar: one year after the install date.
Related
Finding a permit: Albuquerque building permit search. Licenses: Albuquerque contractor license lookup. Counts by year: Albuquerque permit statistics.
What this does not tell you
Our file shows City of Albuquerque solar permits and their filed values. It does not show which systems claimed the credit, whether a battery was included, or whether the filed value matches the price the homeowner paid.
How we know this
The credit rules are from the New Mexico Energy, Minerals and Natural Resources Department's Solar Market Development Tax Credit program overview, modified 1 September 2026 and read 23 October 2026. Permit counts and values are City of Albuquerque solar permits on homes, October 2023 to September 2026; the finished share uses permits a year or more old.
Numbers come from City of Albuquerque building permits, data through October 16, 2026. Nobody paid to be on this page and nobody can.
Questions
- How much is the New Mexico solar tax credit?
10% of the equipment, materials and labor cost of a solar thermal or photovoltaic system, up to $6,000 per taxpayer, for systems installed from 2025 through 2031 (EMNRD). On the usual Albuquerque solar permit value of $16,363, the credit is a tenth of that.
- Is the New Mexico solar tax credit refundable?
Yes. EMNRD says the credit is refundable for tax years 2022 and later, so it is paid even if it exceeds your New Mexico income tax. It can also be transferred, which requires notifying the Taxation and Revenue Department within 10 days on Form TRD-41417.
- What is the deadline to apply for the New Mexico solar tax credit?
EMNRD says to apply for certification within one calendar year after installation, and gives the example that a 2026 installation has a deadline of 31 December 2027. Apply early: the program has a $30 million yearly cap and is first come, first served.
- Does my solar installer apply for the New Mexico tax credit?
No, the taxpayer who bought and installed the system applies to EMNRD for a Certificate of Eligibility, then claims the credit on the state return through TRD's TAP system. EMNRD says you can still apply if the contractor is unresponsive or out of business, as long as you have the documents.
- Does a solar battery qualify for the New Mexico tax credit?
EMNRD lists a credit for a qualifying solar thermal or PV system and battery system, so a battery installed with the solar system can be part of the claim. A battery on its own is not described on the page.
Build your own list
Every firm with that kind of permit on record. Pick what you value. The list moves.
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For one city
- Solar Market Development Tax Credit: Program Overview — New Mexico EMNRD (modified 2026-09-01, accessed 2026-10-23)