You Save Money, Pay No Gross Receipts Tax
Instead of having a sales tax, New Mexico has a gross receipts tax. You save when you buy a solar system because you don’t have to pay the gross receipts tax.
As you know from every time you go shopping, businesses pass along this tax along to you. You pay the tax.
Each year, New Mexico businesses are taxed on their gross receipts. The rate depends on location and may change. For example, as of May, 2017, the tax rate in Albuquerque was 7.3125%.
This tax may not seem like a lot of money to people when they buy a hamburger and fries. But a tax of 7.3125% tax on a $20,000 solar system is a lot of money: $1,462.50!
New Mexico makes solar systems exempt from this tax, so you enjoy big savings. You don’t pay the tax.
New Mexico State Tax Credit
In 2016, the State of New Mexico gave homeowners a 10% tax credit against the cost of an eligible solar system they had installed that year. In 2017, that tax credit ended. We keep our site updated, and we’ll let you know what – if anything – the State of New Mexico decides to do about a solar tax credit next year.
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