May 02nd, 2025

IntroductionLas Cruces, with its 300+ sunny days, is a prime spot for solar energy. But did you know you can save thousands on solar installation through tax incentives? This guide explains the federal and state solar tax credits available in Las Cruces, how to claim them, and why now’s the perfect time to go solar. Let’s dive in!
Federal Solar Tax Credit (ITC)The Investment Tax Credit (ITC) is a federal incentive that reduces your tax liability by 30% of your solar system’s cost. Here’s how it works in Las Cruces:

• Eligibility: Homeowners installing solar panels before 2032.
• Savings: A $20,000 system qualifies for a $6,000 tax credit.
• How to Claim: File IRS Form 5695 with your federal taxes.
• Timeline: Credit applies in the year of installation, but unused credits can carry forward.

Example: A Las Cruces homeowner installs a $18,000 system in 2025, saving $5,400 via the ITC.
New Mexico State Solar Tax CreditNew Mexico offers a 10% state tax credit for solar installations, capped at $6,000. Details:

• Eligibility: Residential solar systems installed in NM.
• Savings: A $20,000 system yields a $2,000 credit.
• How to Claim: Submit Form RPD-41317 to the NM Taxation and Revenue Department.
• Deadline: Available through 2027, subject to funding.

Combined with the federal ITC, you could save 40% on your system cost. Contact Las Cruces Solar Pros to maximize these benefits.
Local Rebates and IncentivesLas Cruces residents may access additional savings:

• PNM Rebates: El Paso Electric (PNM) offers performance-based incentives for solar production (check PNM’s website for 2025 updates).
• Dona Ana County Programs: Occasional grants for renewable energy (verify with county offices).
• Net Metering: Sell excess solar power back to PNM, reducing bills.

Why Incentives Matter in Las CrucesIncentives make solar affordable, reducing upfront costs by thousands. With Las Cruces’ high electricity rates (~13 cents/kWh) and sunny climate, solar saves $1,200-$1,800/year. Payback periods drop to 5-7 years with credits, making solar a smart financial move.
Steps to Claim Solar Tax Incentives

1. Choose a Reputable Installer: Work with trusted providers like Las Cruces Solar Pros.
2. Install Your System: Ensure it meets federal and state requirements (e.g., UL-listed equipment).
3. Keep Records: Save receipts and contracts for tax filings.
4. File Taxes: Submit IRS Form 5695 (federal) and RPD-41317 (NM).
5. Consult a Tax Professional: Confirm eligibility and maximize credits.

Act Now to Save MoreSolar incentives are time-sensitive, with the federal ITC phasing down after 2032 and NM’s credit subject to funding. Plus, Las Cruces’ sunny weather maximizes your solar output. Get a free quote to see how much you can save with incentives.
ConclusionSolar tax incentives in Las Cruces make going solar more affordable than ever. Save up to 40% with federal and state credits, plus enjoy decades of lower bills. Download our Free Solar Incentives Guide to start your solar journey with Las Cruces Solar Pros.

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