Sustainable Building Tax Credit

ECMD Contacts

RESIDENTIAL Tax Credits:
Ken Hughes
(505) 476-3320
ken.hughes@state.nm.us

COMMERCIAL Tax Credits:
Harold Trujillo
(505) 476-3372
harold.trujillo@state.nm.us

 

New rules are in effect for the SBTC. Please click here.

SBTC Funds as of 5/23/14
2014 RESIDENTIAL: No residential funds available
2014 COMMERCIAL
: No commercial funds available

2015 RESIDENTIALNo residential funds available
2015 COMMERCIAL: $215,812.20 used, $784,187.80 available
2016 RESIDENTIAL: No residential funds available
2016 COMMERCIAL: $1 million available

 
What Is the Sustainable Building Tax Credit?

Sustainable Building Tax Credit brochureThe SBTC is an income tax credit to encourage private sector design and construction of energy efficient, sustainable buildings for commercial and residential use. The tax credit is based on third-party validation of the building's level of sustainability.

Requirements for commercial buildings, click here.
Requirements for residential buildings, click here.
How to request a Sustainable Building Tax Credit for a commercial building, click here.
How to apply for a Sustainable Building Tax Credit for residential/commercial buildings, click here.
Rules pertaining to commercial and residential tax credits, click here.
Links to certifying organizations, click here.

 
To certify a building, it is crucial to understand the certification requirements before designing the building:
Requirements for Commercial Buildings
For commercial projects, certification is required by the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system. For residential projects, certification is required by either LEED or the Build Green New Mexico rating system. ENERGY STAR manufactured homes are also eligible for the tax credit. All projects must substantially reduce energy consumption for the new or renovated building. The amount of the tax credit is based on the qualified occupied square footage of the building and the sustainable building rating achieved, and is available for either the Personal Income Tax (PIT) or the Corporate Income Tax (CIT). For details, see the SBTC brochure.
 
Requirements for Residential Buildings

The tax credit can be substantial for residential projects. A LEED® Silver certified 2,000 square foot home that is at least 40 percent more energy efficient than a home built to the standard building code can receive a $10,000 tax credit. For how to take advantage of the residential tax credit, click here. A new commercial building that is 50 percent more energy efficient than a typical building of the same type and achieves LEED® Gold certification can receive $162,500 in tax credits. The tax credits will be available through 2016, with an annual cap (for 2014, 2015 and 2016) of $1,000,000 for commercial and $4,000,000 for residential.

Effective June 30, 2009, all Build Green New Mexico (BGNM) projects need to be certified under the new BGNM (ANSI) standard. The new standard has three levels of certification eligible for the tax credit which will receive the same tax credit amounts as the three LEED-H levels listed in the adjacent chart. The BGNM levels are: Silver, Gold, and Emerald

 
How to Apply for a Sustainable Building Tax Credit
For Commercial Buildings: Before applying for an SBTC for a commercial building, the applicant must first file an SBTC request, using the SBTC Request form (below). This should be done as early in the project cycle as possible, but not before the project has been registered with the U.S. Green Building Council. Mail the request form and all required attachments listed on the form to:

SBTC
ECMD - EMNRD
1220 S. St. Francis Drive
Santa Fe, NM 87505

 
For Commercial and Residential Buildings: Once the building is constructed and all required certifications and documentation are available, complete the appropriate SBTC Application form (below). If you want ECMD to forward the Certificate of Eligibility and the Taxation and Revenue Department’s (TRD) Sustainable Building Tax Credit Approval form to Taxation and Revenue upon approval, include a completed and signed RPD-41327 with your application package. Mail the application form and all required attachments listed on the form to:

SBTC
ECMD - EMNRD
1220 S. St. Francis Drive
Santa Fe, NM 87505

ECMD will send the original Certificate of Eligibility to the applicant and a copy to TRD. Although ECMD offers the courtesy of sending the approval to TRD, it is the applicant’s responsibility to assure that TRD receives the required forms.

The following forms (two for commercial and one for residential) are Microsoft Word documents that allow you to fill in the fields on your computer. Download the forms by right-clicking on a PC or control-clicking on a Mac and selecting the “Save Target As...” option. After saving the form on your computer, you can open it and tab to each field to enter the information. As you tab through the fields, instructions for each field will appear at the bottom of the Microsoft Word window. The fields will expand as needed. The second page of the form shows the attachments that are required with the application package. Click the boxes to indicate which attachments are being submitted.

Rules: The statute that created the SBTC is 2007 Senate Bill 463. ECMD established the following rules that define the procedures, required documentation, and forms to apply for the tax credits. These rules are being revised to reflect changes brought about by 2013 legislative action:

 

Use the quick link reference below to find additional information.

Quick Links for SBTC

Requirement Reference Resource Website
Commercial

50% energy reduction through 2010; 60% energy reduction 2011 through 2016

Target Finder

EPA

www.energystar.gov

Certification at:

Silver, Gold, or Platinum
LEED-NC
LEED-EB
LEED-CS
LEED-CI

Leadership in Energy and Environmental Design (LEED) rating system

U.S. Green Building Council (USGBC)

www.usgbc.org/leed

Residential

HERS Index of 60 or lower

Home Energy Rating System (HERS) and HERS raters

Residential Energy Services Network (RESnet)

www.resnet.us

www.resnet.us/directory/raters.aspx

Certification at:
Build Green NM
OR LEED-H

Silver, Gold, or Emerald/Platinum

Build Green NM rating system

Build Green NM (BGNM)

www.buildgreennm.com

LEED-H rating system

LEED-H Provider

USGBC

Green Insight

www.usgbc.org/leed/homes

www.thegreeninsight.com

New Mexico Taxation and Revenue Department tax credit forms and instructions
State Forestry
505-476-3325
New Mexico Energy, Minerals and Natural Resources Department | Copyright
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