New Mexico has an abundance of sunshine, a large diurnal and annual range of temperature, light precipitation totals, and a mild continental climate. The month of June has the warmest days of the year. In general, New Mexico receives up to eighty percent of sunshine, with as much as ninety percent in November. With this plentiful sunshine, it is best to install solar panels on your roof and get thirty percent New Mexico solar tax credits. Investing in solar energy from the NM Solar Group company can help save you a lot of money in the process.
A tax credit from solar energy installation is a decrease in the income tax you need to pay. For example, if the tax you owe is 5,000USD this year, the tax credit of around 3,000USD you claim will cover a portion of your liability. After the application of the credit, you only need to pay around 2,000USD in federal taxes. Know that it is not a tax refund, as you should owe taxes to be able to claim the credit.
Most people are eligible for solar tax credits, considering that most of them owe taxes. With this, solar service providers dominate the solar power in New Mexico, and NM Solar Group is a full-service solar company. They offer a twenty-five-year guarantee as you take advantage of the solar irradiance through solar panels.
The investment tax credit was set to end in 2007, but Congress has extended the date several times due to its popularity and benefits. Today, solar tax credits are available to people until 2021. From 2016 to 2019, there is a thirty percent tax credit of the system cost. By 2020, commercial and residential owners of solar energy will have a twenty-six percent deduction of cost from their taxes.
How do you qualify for solar tax credits?
To be eligible for New Mexico solar tax credits, you must own the solar energy system you are using. If you sign a Power Purchase Agreement (PPA) or lease with a solar company, you do not qualify for a tax credit. If your tax liability in one year is not enough to claim the incentive, it is possible to roll over the remaining tax credits to the following years, provided the practice is still in effect.
How do you claim your solar tax credits?
When it is time to file your annual federal tax return, you can also claim your New Mexico solar tax credits. Make sure to inform your accountant that you are using solar energy for the past year. If you are filing your taxes, find information on how to claim your solar tax credits. Your credit will increase if you spend more on the solar project. The following are some expenses that allow you to claim credits:
- Electrician fees
- Wiring, screws, bolts, nails, etc.
- Permitting service costs
- Solar consulting fees
- Engineer fees
- Rented or bought equipment
- Professional installer fees
- Freight shipping costs
- Rented or bought tools
- Solar equipment
The method you choose for the installation of solar energy determines the costs of the expenses. If you hire a contractor, you may also claim the expenses for it. If you perform the installation yourself, you cannot claim credit for it. But on the whole, you are far ahead on the overall cost of the project once you choose to have solar panels on your roofs. With the rise in electricity bills, solar energy is an excellent and practical investment, not to mention the benefits you get from New Mexico solar tax credits.