What can we say but "HooRay" as in SolarRay! Finally, after being introduced almost 2 years ago, the New Mexico Legislature adopts a clean energy legislative agenda. The Solar Gross Receipts Tax (GRT) Exemption was established through the passing of House Bill 996 by Representative Mimi Stewart and was later incorporated into Senate Bill 463, pages 55-56. The Solar GRT exemption will be effective on July 1, 2007.

Solar GRT Exemption
The Solar GRT exemption is available for the sale and installation of a solar energy system. A solar energy system is an installation used to provide space heat, hot water or electricity to the property in which it is installed and is:
(1) an installation that utilizes solar panels that are not also windows; including the solar panels and all equipment necessary for the installation and operation of the panels;
(2) dark colored water tank exposed to sunlight, including all equipment necessary for the installation and operation of the water tank as a part of the overall water system of the property; or
(3) a non-vented trombe wall, and all equipment necessary for the installation and operation of the trombe wall.

Solar Energy System Components and Materials Guidance Document
The Solar Energy System Components and Materials (SESCM) list, developed by the New Mexico Energy, Minerals and Natural Resources Department (EMNRD), provides guidance for vendors, contractors, the citizenry of New Mexico and other entities interested in taking advantage of the exemption from GRT for the sale and installation of a solar energy system.
The SESCM list provides guidance in determining the components and materials included in a solar energy system, eligible for the GRT exemption. The list is not comprehensive or static, but is a “living” list of components and materials. Vendors, contractors, citizenry of New Mexico, and other entities will have the opportunity of providing feedback and recommendations.

SESCM Qualifying Components and Materials
Equipment necessary for the sale and installation of a solar energy system includes an essential machine, mechanism or tool, or a component or fitting used directly and exclusively in the solar energy system, and includes replacement of some part of the system, or similar change to the system that would qualify as an adjustment for federal income tax purposes as established under the applicable provisions of the Internal Revenue Code of 1986. Additionally, equipment is limited to components and systems related to storage and collection of solar energy. A solar energy system does not include components or systems related to the uses of the energy.

Our New Mexico customers will need to fill out the form Solar Energy Systems Tax Deduction form, RPD-41341, getting some information from us, signing it and returning it to us before we can not charge you sales tax. Our out of state customers don't have to do any of this anyways!

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