Solar Energy Gross Receipts Tax Deduction

New Mexico has a gross receipts tax structure for businesses instead of a sales tax. Businesses are taxed on the gross amount of their business receipts each year before expenses are deducted. Revenue generated by the sale and installation of solar systems used to provide space heat, hot water, or electricity to the property on which it is installed may be deducted from gross receipts before the gross receipts tax is calculated. Dark-colored water tanks 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, as well as a non-vented trombe wall, including all equipment necessary for the installation and operation of the trombe wall, are also eligible for this tax deduction.

The seller must have a signed copy of Form RPD-41341 to claim the deduction or other evidence acceptable to the New Mexico Energy, Minerals, and Natural Resources Department that the service or equipment was purchased for the sole use of the sale and installation of a qualified energy system.