Sustainable Building Tax Credit Program

Cherise Martinez
(505) 476-3315

COMMERCIAL - Tax Credits
Harold Trujillo
(505) 476-3372

Click HERE for the new application form.

ECMD accepts an electronic submission of a combined pdf of SBTC forms. See below.
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SBTC Funds as of September 18, 2019
2019 MANUFACTURED: $289,560 available
2020 RESIDENTIAL: $970,275 available
2023 COMMERCIAL/MULTIFAMILY: $670,076 available


What Is the Sustainable Building Tax Credit?

The 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 are being updated.
Links to certifying organizations, click here.

The New Sustainable Building Tax Credit Presentation - March 2016

A new Sustainable Building Tax Credit program was signed into law in April 2015 (Senate Bill 279), replacing the current program that has been in place since 2007. The new program reduces the amount per square foot a homebuilder or homebuyer receives per home from a maximum $9/ft2 to $6.50 and caps the eligible size per home at 2000 square feet. Water conserving features are now required: each home must have indoor plumbing fixtures and water-using appliances that have average flow rates equal to or lower than the Environmental Protection Agency’s “WaterSense” certification, and it requires a water line that can be connected to a drip irrigation system in the front and back of a residence in any potential landscaping areas.

Building Certification Requirements

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).


Four sets of rules for the New Sustainable Building Tax Credit (SBTC) program have been published in the
December 30, 2015 edition of the New Mexico Register,  pages 1049 – 1069 and are in effect.
The rules are as follows:

Residential corporate income tax rule
Commercial corporate income tax rule
Residential personal income tax rule
Commercial personal income tax rule

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:

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 41382 Tax Credit Approval Form with your application package. Mail the application form and all required attachments listed on the form to:

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.

You may find TRD's guidance on the tax credit useful;  click here for a copy.

Other forms that may prove useful include:

RPD 41382 Tax Credit Approval Form
RPD 41382 Instructions

RPD 41383  Tax Credit Claim Form
RPD 41383 Instructions
RPD 41384  Transfer Form
RPD 41384  Instructions

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.

Use the quick link reference below to find additional information.

Quick Links for SBTC

Requirement Reference Resource Website

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

Target Finder


Certification at:

Silver, Gold, or Platinum

Leadership in Energy and Environmental Design (LEED) rating system

U.S. Green Building Council (USGBC)


HERS Index of 60 or lower

Home Energy Rating System (HERS) and HERS raters

Residential Energy Services Network (RESnet)

Certification at:
Build Green NM

Silver, Gold, or Emerald/Platinum

Build Green NM rating system

Build Green NM (BGNM)

LEED-H rating system

LEED-H Provider


Green Insight

New Mexico Taxation and Revenue Department tax credit forms and instructions
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