Energy Conserving Products

Sustainable Building Tax Credit (SBTC2021) Incentive

Statute – 3.3.35 NMAC 2021 Sustainable Building Tax Credit Personal Income Tax

Statute – 3.4.22 NMAC 2021 Sustainable Building Tax Credit Corporate Income Tax

Welcome to the Energy Conserving Products (ECP) electronic application portal for the 2021 Sustainable Building Tax Credit (SBTC2021).

Quick overview of the tax credit process:

Step 1– Assess your eligibility. Homeowners and businesses are eligible for the 2021 Sustainable Building Tax Credit (SBTC2021) for the installation of energy efficient products and electrification measures they install in their existing homes and businesses.

Step 2– Gather required supporting documents.

Step 3– Apply for SBTC2021 with Energy Minerals and Natural Resources Department (EMNRD).

Step 4– Receive a certificate of eligibility tax credit award from EMNRD.

Step 5– Claim your tax credit with New Mexico Taxation and Revenue Department.

New Mexicans are now eligible for a tax credit for energy efficiency and electrification measures they install in their existing homes. The 2021 Sustainable Building Tax Credit (SBTC2021) incentivizes energy efficiency improvements to existing buildings for the following actions:

• Installation of an air source heat pump.
• Installation of a ground source heat pump.
• Installation of a heat pump water heater.
• Installation of Energy Star windows.
• Installation of Energy Star doors.
• Improvements to building insulation levels.
• Make ready building to be electric vehicle (EV) ready.

A New Mexico property owner may apply for the 2021 Sustainable Building Tax Credit for ECPs from the Energy, Minerals and Natural Resources Department (EMNRD) after the installation of energy conserving products in an existing New Mexico building. Energy Conserving Products (ECP) must meet Energy Star performance values or equivalent performance values for the climate zone in which the products are installed.

An applicant may remit an electronic application for Energy Conserving Products (ECP) installed January 1, 2021, through subsequent calendar year for taxable years prior January 1, 2028, if the tax credit remains in effect. The department must verify the documentation submitted before the department issues a certificate of eligibility for a 2021 Sustainable Building Tax Credit for ECPs. If the 2021 Sustainable Building Tax Credit’s annual cap for ECPs has been reached, the department will issue a certificate of eligibility for the next taxable year in which funds are available.

The Instruction Manual explains qualification requirements and how to apply for tax credits for installation of energy efficient products in existing residential homes and small commercial buildings under 20K sq. ft.   Applications shall be submitted utilizing an online portal for energy conserving products.

When the applicant is successful, the web portal will return an acknowledgement that the application submission status as successful. Please allow 3-4 weeks for application processing. Energy Conservation and Management Division (ECMD) Administration will review the application package to determine if the documentation supplied satisfies the tax credit requirements. The department shall disapprove an application that is not complete or does not meet the approval criteria. If application is approved the Department will email the generated certificate of eligibility for the 2021 Sustainable Building Tax Credit, Energy Conservation Product.

Required Documents

• A copy of a deed, property tax bill or legal description of the building.
• Itemized invoice showing the description of the product, quantity of product, cost of the energy-conserving product and cost for installation labor cost.
• Proof of passing inspection, if applicable
• EV ready – a specification sheet for the electric vehicle charging unit
• EV ready – a one-line diagram showing the ampere and voltage rating of the dedicated branch circuit for each charging unit.
• Insulation – material specification sheet showing the R-value or U-value of insulation.
• Insulation – Material flame spread index and smoke development index specifications.
• Insulation – A certification provided by the contractor showing the installed thickness of insulation following the manufacturer’s installation instructions for blown-in or sprayed-on insulation.
• Window/Door/Heat pump performance specification values or Energy Star website equipment specification sheet showing complete model number and rating performance values or copy of Energy Star label for specific model of installed items.
• In addition to the foregoing, the applicant shall submit any other information the department determines it needs to review the building project for the 2021 Sustainable Building Tax Credit.

Determining which portal to use: There are two types of tax credit incentives available under the Sustainable Building Tax Credit (SBTC2021)

1. for installation of certain Energy Conserving Products (ECP) in existing residences and existing commercial buildings with less than 20K sq. ft. The 2021 Sustainable Building Tax Credit for electrification measures in residential or commercial went into effect on January 1, Please use the 2021 Sustainable Building Tax Credit, for Energy Conserving Products web portal. https://wwwapps.emnrd.nm.gov/ECMD/ECPSubmissions/
2. for renovation of a large existing commercial building of more than 20K sq. ft., and new building construction projects. The 2021 Sustainable Building Tax Credit for the new building construction (residential or commercial) or large commercial renovation went into effect on January 1, Please use the 2021 Sustainable Building Tax Credit web portal. https://www.emnrd.nm.gov/ecmd/tax-incentives/sustainable-building-tax-credit-sbtc/