TITLE 3 TAXATION
CHAPTER 3 PERSONAL
INCOME TAXES
PART 14 NEW SOLAR MARKET DEVELOPMENT
INCOME TAX CREDIT
3.3.14.1 ISSUING
AGENCY: Energy, Minerals and Natural Resources
Department, Energy, Conservation and Management Division.
[3.3.14.1 NMAC - N, 8/25/2020]
3.3.14.2 SCOPE: 3.3.14
NMAC applies to the application and certification procedures for administration
of the new solar market development income tax credit.
[3.3.14.2 NMAC - N, 8/25/2020]
3.3.14.3 STATUTORY AUTHORITY: 3.3.14 NMAC is established under the authority of Section 7-2-18-31 and Subsection 9-1-5 NMSA 1978.
[3.3.14.3 NMAC - N, 8/25/2020;
A, 12/13/2022]
3.3.14.4 DURATION:
Permanent.
[3.3.14.4 NMAC - N, 8/25/2020]
3.3.14.5 EFFECTIVE
DATE: August 25, 2020
unless a later date is cited at the end of a section.
[3.3.14.5
NMAC - N, 8/25/2020]
3.3.14.6 OBJECTIVE: 3.3.14
NMAC’s objective is to establish procedures for administering the certification
program for the new solar market development income tax credit.
[3.3.14.6 NMAC - N, 8/25/2020]
3.3.14.7 DEFINITIONS:
A. “Applicant” means a New Mexico taxpayer
that has installed a solar energy system at a residence, business
or agricultural enterprise that the taxpayer owns who desires to have the
department certify the solar energy system pursuant to 3.3.14 NMAC so that the
taxpayer may receive a state tax credit.
B. “Application package” means the
application documents an applicant submits to the department for certification
to receive a state tax credit.
C. “Array” means the collectors of a solar
thermal system or the modules of a photovoltaic system.
D. “Balance of system” means portions of a
solar energy system other than the array.
E. “Building code authority” means the New
Mexico regulation and licensing department, construction industries department
or the local government agency having jurisdiction for building, electrical and
mechanical codes.
F. “Certified” or “certification” means department approval of a solar energy system,
which makes the applicant owning the system eligible for a state tax credit.
G. “Collector” means the solar thermal
system component that absorbs solar energy for conversion into heat or
electricity.
H. “Collector aperture” means the area of
a solar thermal collector that absorbs solar energy for conversion into usable
heat.
I. “Component” means a solar energy
system’s equipment and materials.
J. “Department” means the energy, minerals and natural resources department.
K. “Division” means the department’s
energy conservation and management division.
L. “Energy system” means an engineered
system that delivers solar energy to an end use by flow of fluid or electricity
caused by energized components such as pumps, fans, inverters
or controllers.
M. “Install” or “installation” means the direct work of
placing a solar energy system into service to operate and produce energy at the
expected level for a system of its size, which shall include completion of any
required final inspections or contractor certification of installation on
tribal or pueblo land.
N “Module” means the photovoltaic system
component that absorbs sunlight for conversion into electricity.
O. “New” means the condition of being
recently manufactured and not used previously in any installation.
P. “New solar market development income tax credit”
means the personal income tax credit the state of New Mexico issues to a
taxpayer for a solar energy system the department has certified pursuant to
3.3.14 NMAC.
Q. “Non-residential” means a business or
agricultural enterprise.
R. “OG” means operating guidelines that
the solar rating and certification corporation has or will establish including
system performance or component characteristics as defined in the applicable SRCC
directory. Operating guidelines shall be
from SRCC directory in effect on March 1, 2006 or any
applicable successive revisions.
S. “Portable” means not permanently
connected to a residence, business or agricultural enterprise or connected to a
mobile vehicle that is a part of a residence, business
or agricultural enterprise.
T. “Solar collector” means a solar thermal
collector or photovoltaic module.
U. “Solar energy system” means a solar
thermal system or photovoltaic system.
V. “Solar storage tank” means a tank
provided as a component in a solar thermal system that is not heated by
electricity or a heating fuel.
W. “SRCC” means the solar rating and
certification corporation.
X. “Standard test conditions” means the
environmental conditions under which a manufacturer tests a photovoltaic module
for power output, which are a photovoltaic cell temperature of 25 degrees Celsius
and solar insolation of 1000 watts per square meter on the photovoltaic cell surface.
Y. “State tax credit” means the new solar
market development income tax credit.
[3.3.14.7 NMAC - N, 8/25/2020;
A, 12/13/2022]
3.3.14.8 GENERAL PROVISIONS:
A. Only a New
Mexico individual taxpayer, corporation or agricultural enterprise who has
purchased and installed, on property that he, she, or the corporation owns, an
operating solar energy system that the department has certified pursuant
to this part is eligible for a state tax credit
for the tax year in which the system is installed.
B. An applicant must own the residence, business, or agriculture enterprise on which the solar energy system is located to qualify for the tax credit. The applicant may rent a residence, business or agricultural enterprise that the applicant owns to another entity, however, the renter does not qualify for the tax credit.
C. The
annual aggregate amounts of the state tax credit available to applicants
owning certified solar energy systems is limited to $12,000,000 per
calendar year. When the $12,000,000 limit
for solar energy systems is reached based on the total of applicants certified,
the department will no longer certify systems in that year. Applications received after the aggregate
limit is reached shall not be approved and will be returned to applicant. The department shall keep a record of the
order of receipt of all application packages
to ensure the annual aggregate amount is not exceeded in any given year.
D. In the event of
a discrepancy between a requirement of 3.3.14 NMAC and an existing New Mexico
regulation and licensing department or New Mexico taxation and revenue
department rule promulgated prior to 3.3.14 NMAC’s adoption, the existing rule
shall govern.
[3.3.14.8 NMAC - N, 8/25/2020;
A, 12/13/2022]
3.3.14.9 APPLICATION:
A. To apply for a
state tax credit an applicant shall submit an application
for a certificate of eligibility to the division using either a
department-developed application or an approved electronic application system
as directed by the division director. The
department will not accept applications submitted by e-mail unless
specifically authorized by the division. An
applicant may obtain a state tax credit application form and system
installation form from the division.
B. An application package
shall include a completed state tax credit application form and written
attachments for a solar thermal system or photovoltaic system. To be considered
complete, an application must include the state tax credit application form and
any required attachments, partial applications will not be accepted. An applicant shall submit one application
package for each eligible solar energy system.
If there are multiple owners of the property where the solar energy
system is installed a joint application must be submitted.
C. The application package shall meet
3.3.14 NMAC’s requirements. If an
application package fails to meet a requirement, the department shall
disapprove the application.
D. The
completed application form shall consist of the following information:
(1) the
applicant’s name, mailing address, e-mail address, telephone number and social
security number or employer identification number (EIN) provided by a business
or agricultural enterprise;
(2) the
address where the solar energy system is located, if located at a residence,
business or agricultural enterprise, or a location description if located at an
agricultural enterprise;
(3) the
solar energy system’s type and description;
(4) the
date the solar energy system was installed;
(5) if
a contractor installed the solar energy system, the contractor’s name, address,
telephone number, e-mail address, license category and license number;
(6) acknowledgement
the applicant installed the solar energy system, if applicable;
(7) the
net cost of equipment, materials and labor of the
solar energy system, excluding the expenses and income listed in 3.3.14 NMAC;
and
(8) a
statement the applicant signed and dated, which may be a form of electronic
signature if approved by the department, agreeing:
(a) all
information provided in the application package is true and correct to the best
of the applicant’s knowledge;
(b) applicant
has read the certification requirements contained in 3.3.14 NMAC;
(c) applicant
understands that there is annual aggregate cap on available state tax credits
in place for solar energy systems and that they are only eligible for a credit
in the year the system was installed;
(d) applicant
understands that the department must certify the solar energy system documented
in the application package before becoming eligible for a state tax credit;
(e) applicant
agrees to make any changes the department requires to the solar energy system
for compliance with 3.3.14 NMAC; and
(f) to ensure compliance with 3.3.14
NMAC applicant agrees to allow the department
or its authorized representative to inspect the solar energy system described
in the application package at any time after the date of submittal of the
application package until three years after the department has certified the
solar energy system, upon the department providing a minimum of five days’
notice to the applicant.
E. The
application package shall consist of the following information provided as attachments:
(1) a copy of a current property
tax bill or other equivalent proof of ownership in the applicant’s name for the
residence, business or agricultural enterprise where the solar energy system is located;
(2) a copy of the invoice of itemized equipment and labor costs for the solar energy system;
(3) a
copy of the solar energy system’s design schematic and technical specifications
as described in 3.3.14 NMAC;
(4) a completed system installation form;
(5) if application is for a solar thermal
system, a completed solar thermal list form that includes the:
(a) manufacturer or supplier of system
components and their model numbers;
(b) number of collectors;
(c) collector aperture dimensions;
(d) orientation of collectors by
providing the azimuth angle from true south and tilt angle from horizontal;
(e) SRCC solar collector certification
identification number;
(f) a description of the freeze protection;
(g) a description of overheating protection;
(h) thermal storage fluid or material and
its volume, if thermal storage is a part of the system and if the thermal
storage does not have energy provided from a non-solar or non-renewable source;
and
(i) manufacturer’s
specifications for collectors, if collectors are unglazed;
(6) if application is for a photovoltaic system, a completed solar
photovoltaic list form that includes the:
(a) manufacturer or supplier of major
system components and their model numbers;
(b) number of modules;
(c) module rated direct current power
output in watts under manufacturer’s standard test conditions;
(d) collectors’ orientation by providing
the azimuth angle from true south and tilt angle from horizontal;
(e) total inverter capacity in kilowatts,
if an inverter is a part of the system;
(f) battery storage size and capacity in
kilowatts and kilowatt-hours, if battery storage is a part of the system; and
(7) other information the department
needs to evaluate the specific system type for certification.
F. The
completed system installation form shall include the following information:
(1) printed name of the applicant who is
identified on the application form;
(2) printed name, title and telephone
number of the contractor’s authorized representative, if applicable, who
approved the system installation form;
(3) printed
organizational name, e-mail address and telephone number of the building code
authority issuing the building permit, if applicable;
(4) date on which solar energy system
installation was
complete and received a passing inspection pursuant to applicable
rules or code if applicable;
(a) the solar energy system was
installed in full compliance with all applicable federal, state and local
government statutes or ordinances, rules or regulations and codes and standards
that are in effect at the time of installation;
(b) contractor has read 3.3.14 NMAC’s certification requirements;
(c) the date on which the solar energy system received a passing inspection pursuant to applicable rules or code if applicable:
(d) the installed solar energy system will work properly with regular maintenance; and
(e) contractor provided written operations and maintenance instructions to the applicant and posted a one-page summary of these instructions in a sheltered accessible location acceptable to the applicant and which is near or at the solar energy system’s array or balance of system components; and
(6) the
building code authority’s permit number and issuance date, and date of
successful inspection, if applicable, noted on a physical form, photo of
inspection sticker or a web-based report the applicable building code authority
approves.
[3.3.14.9 NMAC - N, 8/25/2020;
A, 12/13/2022]
3.3.14.10 APPLICATION REVIEW PROCESS:
A. The department shall
consider complete applications in the order received. If the department receives
multiple applications on the same day that would cumulatively exceed the
overall limit of state tax credit availability, the department shall certify
the first application received for the last remaining tax credit.
B. The
department shall review the application package to calculate the state tax
credit, check the accuracy of the applicant’s documentation and determine
whether the department shall certify the solar energy system. The department
shall disapprove an application that is not complete, correct, or does not meet
the approval criteria.
C. If the department
finds the application package meets 3.3.14 NMAC’s requirements and a state tax
credit is available, the department shall certify the applicant’s solar energy
system and document the applicant as eligible for a state tax credit. If a state tax credit is not available in the
calendar year when the application was submitted, the applicant is notified the
program has reached the tax credit cap and their application is not certified. The department provides certification through
written notification to the applicant. The
notification shall include the applicant’s contact information, last four
digits of the social security number or EIN, system certification number and the state
tax credit amount.
D. The department shall
report to the taxation and revenue department the information required to
verify, process and distribute each state tax credit
by providing a copy of the department’s certification notification.
E. The applicant
may submit a revised application package to the department; however, the division
shall place the resubmitted application in the review schedule as if it were a
new application unless the application is disapproved because the annual cap
has been reached.
F. If applicable,
the department’s disapproval letter shall state the reasons why the department
disapproved the application. The
applicant may resubmit the application package for a disapproved project, but
it shall be reviewed as if it were a new application.
[3.3.14.10 NMAC - N,
8/25/2020; A, 12/13/2022]
3.3.14.11 SAFETY, CODES AND STANDARDS:
A. Solar energy
systems that the department may certify shall meet the following requirements:
(1) compliance with the latest adopted
version of all applicable federal, state and local government statutes or
ordinances, rules or regulations and codes and standards that are in effect at the
time that the applicant submits the application package;
(2) compliance with the building code
authority’s structural design requirements, as applicable to new and existing
structures upon which solar energy system components may be mounted and support
structures of solar energy system components;
(3) permitted and inspected by the applicable
building code authority for building, electrical or mechanical code compliance,
as applicable to the type of solar energy system installed, if applicable; and
(4) a written final inspection approval
obtained from the applicable building code authority after the solar energy
system’s installation, as applicable to the solar energy system type, if
applicable.
B. Solar thermal systems that the department may certify
shall meet the following requirements:
(1) installation by a certified
mechanical journeyman who is an employee of a company holding a valid New
Mexico mechanical contractor license; and
(2) design, permitting and installation
in full compliance with all applicable provisions of the New Mexico Plumbing
Code 14.8.2 NMAC, the New Mexico Mechanical Codes 14.9.2 NMAC, Solar Energy
Code 14.9.6 NMAC, the New Mexico General Construction Building Codes, 14.7.2 to
14.7.7 NMAC and any amendments to these codes adopted by a political subdivision
that has validly exercised its planning and permitting authority under Sections
3-17-6 and 3-18-6 NMSA 1978.
C. Photovoltaic systems that the department may certify
shall meet the following requirements:
(1) installed by a certified electrical
journeyman who is an employee of a company holding a valid New Mexico
electrical contractor license; and
(2) design, permitting and installation
in full compliance with all applicable provisions of the New Mexico Electrical
Code 14.10.4 NMAC and any amendments to these codes adopted by a political subdivision that has
validly exercised its planning and permitting authority under Sections 3-17-6
and 3-18-6 NMSA 1978.
[3.3.14.11 NMAC - N,
8/25/2020; A, 12/13/2022]
3.3.14.12 SOLAR COLLECTOR AND MODULE
ORIENTATION AND SUN EXPOSURE:
A. A solar energy
system array the department certifies shall have an
azimuth angle or sun exposure reduction due to shading or other factors that
results in annual energy production of the total solar energy system having a
combined derating of not more than twenty five percent when compared to an
ideal solar energy system at the same location that has an unshaded array tilt
equal to local latitude and azimuth of true south. For cases in which the combined impact of
orientation and sun exposure of an array is evaluated, the applicant shall
estimate a derating using a department approved method or model.
B. A
tracking array of a solar energy system that the department certifies shall
have a mechanism to track the sun so that the array absorber surface
consistently receives the sun’s direct beam at all times
when the direct beam of full sun is available, without requiring manual
adjustment, except for a solar energy system having the following tracking
array control features:
(1) automatic
and intentional stowage of the array due to high velocity wind to avoid damage
to the array and its support structure;
(2) automatic
and intentional adjustment to off-direct-beam array orientations at low sun
angles to optimize the solar energy system’s annual energy production; or
(3) other
automatic and intentional array control features that demonstrate to the
department’s satisfaction that the solar energy system’s annual energy
production is optimized.
C. A
solar energy system that the department certifies shall have an array and
balance of system components that are automatically controlled to collect
sunlight or solar heat and deliver to an end use, without requiring manual
operation.
D. It
is the applicant’s sole responsibility to take action
or meet the Solar Rights Act’s requirements, if applicable.
[3.3.14.12 NMAC - N,
8/25/2020]
3.3.14.13 MINIMUM SYSTEM SIZES, SYSTEM
APPLICATIONS AND LISTS OF ELIGIBLE COMPONENTS:
A. Solar energy
systems or their portions that the department may certify shall meet the
following requirements:
(1) be
made of new equipment, components and materials;
(2) if
installed by a contractor, have a written minimum two-year warranty provided by the contractor on
parts, equipment and labor with the following
exceptions:
(a) the warranty provided by the contractor on each specific piece of equipment shall not exceed the duration and conditions of the warranty provided by the manufacturer of the equipment against defects in materials and workmanship; and
(b) in the case of an expansion of an existing system, the warranty provided by the contractor shall be limited to cover only parts, equipment and labor directly related to the expansion;
(3) be
a complete energy system that collects, converts and distributes solar energy
to the residence, business or agricultural enterprise it serves, unless
requirements are met for expansion of an existing solar energy system;
(4) if
an expansion of an existing solar energy system, end use annual energy
production of the new system shall be increased in comparison to the existing
system by the amount of the minimum system size requirement and the contractor
or applicant shall provide a written summary of the condition of each major
component of the system; and
(5) if
a specialty component is required for a complete solar energy system, then that
component shall be included as part of the solar energy system that is eligible
for department certification.
B. Solar energy
systems or their portions that the department shall not certify are as follows:
(1) a
system or portion of a system that uses non-solar or non-renewable sources in
its operation, except for the following:
(a) power
necessary to provide for solar energy system components’ incidental electricity
needs; and
(b) non-solar
or non-renewable sources that do not exceed twenty five percent of the system’s
annual energy production;
(2) a
system or portion of a system that would be present if the solar energy system
was not installed;
(3) a
system that increases an existing residence, business or agricultural
enterprise’s average annual energy consumption;
(4) a
system that is mobile and does not serve a permanent end use energy load or is
not permanently located in New Mexico;
(5) a
system that is not connected to a structure or foundation and does not serve a
permanent end use energy load or is not permanently located in New Mexico;
(6) a
system or portion of a system having one or more components not manufactured on
a regular basis by a business enterprise;
(7) a
system installed on a recreational vehicle;
(8) a
system not serving an end use energy load; or
(9) a
system or portion of a system that replaces a system or portion of a system the
department has certified in a previous application for a state tax credit.
C. The
department may disapprove a system type, solar thermal collector type,
photovoltaic module type or a solar energy system component if not listed in
3.3.14 NMAC for certification.
D. Solar
thermal systems that the department may certify include:
(1) the
system applications of solar domestic hot water, solar space heating, solar air
heating, solar process heating, solar space cooling or combinations of solar
thermal system applications listed in 3.3.14 NMAC;
(2) the
collector types of flat plate, parabolic trough and
evacuated tube; and
(3) the
listed component categories of collectors, pumps, fans, solar storage tanks,
expansion tanks, valves, controllers and heat
exchangers.
E. A
solar thermal system component that the department may certify is a
photovoltaic system providing power for a solar thermal system component’s
incidental electricity needs. The department shall not certify such a
photovoltaic system as a separate solar energy system eligible for a separate
state tax credit.
F. Solar
thermal systems or their components that the department shall not certify are
as follows:
(1) a
heating system or heating system components necessary for a swimming pool or a
hot tub;
(2) equipment
sheds, wall preparation, cabinetry, site-built enclosures, distribution piping
and associated installation costs;
(3) a
building design element used for passive solar space heating, space cooling,
daylighting or other environmental comfort attribute;
(4) a
water quality distillation or processing system;
(5) in
a combined system, the portions of the system not allowed to receive a state
tax credit or for which the department shall not certify the system;
(6) systems
without adequate freeze protection;
(7) systems
incorporating drain down as a freeze protection method;
(8) systems
without adequate overheating protection; and
(9) systems using solar rated
low-pressure components with high pressure refrigerant compressors.
G. Solar
thermal systems that the department may certify shall meet the following
requirements:
(1) minimum
system size of 15 square feet of solar collector aperture area;
(2) for solar domestic hot
water systems installed at a residence or business, a minimum of fifty percent
of the total domestic water heating load provided by solar energy;
(3) a
collector that is:
(a) listed
as certified by the SRCC by OG-100 collector certification or OG-300 system
certification processes;
(b) if
glazed, made of all-metal enclosures, absorber plates, fasteners
and fittings; aperture glazing of tempered glass; and fiberglass or polyisocyanurate
insulation; or
(c) if
unglazed, made of durable materials having a minimum 12-year warranty period
for full replacement; and
(4) all
components approved by an agency accredited by the American national standards
institute, if available for that specific component category.
H. Photovoltaic
systems that the department may certify include:
(1) the
system applications of direct power without battery storage, utility grid
interconnected without battery storage, utility grid interconnected with
battery storage, stand-alone with battery storage, stand-alone with utility
backup capability and water pumping;
(2) the
flat plate module types of crystalline, poly-crystalline or thin-film amorphous
silicon;
(3) the
listed component categories of modules, inverters, batteries, manufactured
battery enclosures, charge controllers, power point trackers, well pumps,
racks, sun tracking mechanisms, performance monitoring equipment,
communications, datalogging or lightning protection; and
(4) disconnect
components, safety components, standard electrical materials
and standard electrical hardware necessary for the assembly of the listed
component categories into a complete, safe and fully operational system.
I. Photovoltaic
systems that the department may certify shall meet the following requirements:
(1) a
minimum total array power output of 100 watts direct current at manufacturer’s
standard test conditions;
(2) all
components listed and labeled by a nationally recognized testing laboratory, if
such listing is available for that specific component category; and
(3) an
agricultural enterprise photovoltaic system on a farm or ranch that is not
connected to an electric utility transmission or distribution system.
J. Photovoltaic
systems or their portions that the department shall not certify are as follows:
(1) a
commercial or industrial photovoltaic system that is not connected to an
electric utility transmission or distribution system;
(2) power
equipment sheds, wall preparation, cabinetry, site-built battery enclosures,
distribution wiring and associated installation costs;
(3) the
drilling, well casing, storage tanks, distribution piping, distribution
controls and associated installation costs of a water pumping system; and
(4) a
packaged product powered by photovoltaic cells that an applicant purchased
directly from a retail business enterprise, is not custom designed, and does
not require a permit from the building code authority for installation,
including watches, calculators, walkway lights and toys.
[3.3.14.13 NMAC - N,
8/25/2020]
3.3.14.14 CERTIFICATION:
A. The purpose of
the department’s certification program is to evaluate certification of complete
solar energy systems for state tax credit eligibility that are comprised of
components and materials that are tested, certified, approved or listed, as
applicable, by other organizations identified or referenced in 3.3.14 NMAC.
B. For purposes of
monitoring compliance with 3.3.14 NMAC, the department or its authorized representative
shall have the authority to inspect a solar energy system owned by an applicant
who has submitted an application for certification,
upon the department providing five days’ notice to the applicant.
[3.3.14.14 NMAC - N,
8/25/2020]
3.3.14.15 CALCULATING THE SOLAR ENERGY
SYSTEM COST:
A. A state tax
credit shall be based on the equipment, materials and
labor costs of a solar energy system the department has certified.
B. The equipment, materials and labor costs of a solar energy system the
department certifies shall be documented in an itemized invoice.
C. The cost of a
solar energy system the department certifies shall be the net cost of acquiring
the system and shall not include the following:
(1) expenses,
including but not limited to:
(a) unpaid
labor or the applicant’s labor;
(b) unpaid
equipment or materials;
(c) land
costs or property taxes;
(d) costs
of structural, surface protection and other functions in building elements that
would be included in building construction if a solar energy system were not installed;
(e) mortgage,
lease or rental costs of the residence, business or agricultural enterprise;
(f) legal
and court costs;
(g) research
fees or patent search fees;
(h) fees
for use permits or variances;
(i) design
fees, permitting inspection fees, review stamp fees and interconnection fees;
(j) membership
fees;
(k) financing
costs or loan interest;
(l) marketing,
promotional or advertising costs;
(m) repair,
operating or maintenance costs;
(n) warranty
or extended warranty costs;
(o) system
resale costs;
(p) system
visual barrier costs;
(q) adjacent
structure modification costs for building structures such as portals, garages or
pergolas to hold solar panels, or costs for modification or roof repair to hold
solar panels;
(r) vegetation
maintenance costs including tree trimming;
(s) contractor or inspector travel,
mileage or overnight hotel stays;
(t) recreational vehicle or hot tub ports;
(u) trenching exceeding 50 feet; and
(v) donations to food banks on the
applicant’s behalf; and
(2) income,
including:
(a) payments
the solar energy system contractor or other parties provide that reduce the
system cost, including rebates, discounts and refunds except for federal, state
and local government and utility company solar incentives;
(b) services,
benefits or material goods the solar energy system
contractor or other parties provide by the same or separate contract, whether
written or verbal; and
(c) other
financial incentives provided for solar energy system installation, if
applicable.
D. The department
shall make the final determination of the net cost of a solar energy system the
department certifies pursuant to 3.3.14 NMAC.
[3.3.14.15 NMAC - N,
8/25/2020; A, 12/13/2022]
3.3.14.16 CALCULATING THE STATE TAX CREDIT:
A. A state tax
credit to an applicant for a solar energy system the department has certified
shall not exceed:
(1) ten percent of the net solar energy system cost as
provided in 3.3.14.15 NMAC; and
(2) $6,000.
B. The
taxation and revenue department shall make the final determination of the
amount of a state tax credit.
[3.3.14.16 NMAC – N,
8/25/2020]
3.3.14.17 CLAIMING THE STATE TAX CREDIT:
A. An applicant shall apply for the state tax credit with the taxation and revenue department and provide the EMNRD certification and any other information the tax and revenue department requires within 12 months following the calendar year in which the system was installed.
. B. An applicant
claiming a state tax credit shall not claim a state tax credit pursuant to another
law for costs related to the same solar energy system costs.
[3.3.14.17 NMAC – N,
8/25/2020; A, 12/13/2022]
3.3.14.18 CONSUMER INFORMATION:
A. If a contractor
installs the solar energy system, the contractor shall inform the applicant about
system design, installation, performance, operation
and maintenance by providing the following:
(1) prior
to system installation, a summary of the specific system type that meets all
3.3.14 NMAC’s requirements, the system’s capacity or size and the system’s estimated
annual energy production;
(2) upon
completion of system installation, written operation and maintenance
instructions, including how to conduct simple diagnostic observations and tests
to determine if the solar energy system is working properly to produce energy;
(3) upon
completion of system installation, a written summary of operation and
maintenance instructions on one page, posted at an accessible location acceptable to the applicant
and that is near or at the solar energy system’s array or balance of system
components; and
(4) upon
completion of system installation, written warranties in effect for equipment
and contractor’s labor, including their start and end dates and telephone, address and website contact information, as applicable, for
honoring or extending warranties.
B. If the solar
energy system is a solar thermal system, the following information shall be
displayed:
(1) pump
or fan status by a visual indicator, as applicable;
(2) outlet
temperature of the collector loop;
(3) if
a liquid collector, the collector loop’s pressure; and
(4) the
solar storage tank’s temperature, if applicable.
C. If the solar
energy system is a photovoltaic system, the following information shall be
displayed:
(1) for
all photovoltaic systems, a visual indicator for operating status;
(2) for
an electric utility interconnected system without batteries,
(a) daily
and cumulative energy production in kilowatt-hours alternating current of the
inverter display or as shown on online data monitoring; and
(b) instantaneous
power output in kilowatts alternating current of the inverter display or as
shown on online data monitoring;
(3) for
an electric utility interconnected system with batteries, a method to enable real-time
evaluation of system power or energy production; and
(4) for
a stand-alone system with battery storage,
(a) voltage
and amperes of module array; and
(b) battery
storage level.
[3.3.14.18 NMAC - N,
8/25/2020]
3.3.14.19 INSPECTION OF SOLAR ENERGY
SYSTEMS:
A. The only inspection
required through the application process for certification of an applicant’s
solar energy system are an inspection by the applicable building code authority
for building, electrical or mechanical code compliance, as applicable to the
solar energy system type, if applicable.
But an applicant should be aware that their electric utility company
requirements may have additional inspection requirements for photovoltaic
systems that are interconnected to the distribution grid of that electric
utility company. The applicant is solely
responsible for compliance with such requirements.
B. The department
retains the right to inspect a solar energy system it has certified, within three years after
the department’s certification, upon the department providing a minimum of five
days’ notice to an applicant with a certified system.
[3.3.14.19 NMAC - N,
8/25/2020; A, 12/13/2022]
HISTORY OF 3.3.14
NMAC:
Pre-NMAC History: None.
History of
Repealed Material: [RESERVED]