Solar power offers tax incentives

It's tax season, so it was appropriate that the March meeting of the New Mexico Solar Energy Association-Alamogordo Chapter focused on tax incentives available for solar.

The lead speaker at the meeting held Thursday in the Alamogordo Public Library's Sacramento Room was Leslie Lamb of Liberty Tax Service of Alamogordo.

"You have some really awesome tax incentives in the state of New Mexico," said Lamb, who moved here 18 months ago from Iowa. "We're going to build a home, and we wouldn't do it without solar.

"Talking about energy-efficiency, you always start with easy-to-do things, like switching from conventional light bulbs to compact fluorescent bulbs.

"Consider investing in high-efficiency appliances, which will save energy and money in the long run. Upgrade your insulation. Add weather stripping and caulking, low-flow showerheads and water-heater wraps."

Lamb said there are energy-saver rebates for cycling off your swamp coolers at certain times of the day. She said information on the Power Savers program is available at (866) 471-7906, and that the PNM Energy Efficiency Program Hotline is (866) REBATES (732-2837).

For information available on the Web, go to www.energystar.gov, then to Tax Credits for Energy Efficiency in the lower left of the page. Library patrons who are not online can access computers at the Alamogordo and Tularosa public libraries.

Lamb said she had waded through most of the 407 pages of the American Recovery and Reinvestment Act of 2009, "which is a great summary of the federal tax credits available to homeowners for 2009 and 2010."

There is one total federal tax credit of $1,500 available over two years for each tax return filed, "so basically you can spend up to $5,000 during this two-year period on a single improvement, or multiple improvements, and get 30 percent, or $1,500, back as a tax credit. Save your receipts for certification," she said.

There are two categories of improvements that are eligible for tax credits, Lamb said. The first is available for 30 percent of the cost, up to $1,500 total credit in 2009-2010 for existing homes and primary residences only, for windows and doors, insulation, roofs both metal and asphalt, heating, ventilation and air conditioning systems, non-solar water heaters and biomass stoves.

The second category is of tax credits is available at 30 percent of the cost, with no upper cost limit through 2016, for existing homes, including vacation homes and rentals and new construction. This category includes fuel cells, geo-thermal heat pumps, photovoltaic solar panel systems, small wind energy systems and solar water heaters.

"Since tax laws are complicated and ever-evolving, I suggest you contact competent advisors before investing in any improvements," Lamb said.

The audience for these meetings is very knowledgeable. Safi Harnett, a retired teacher, was one of those who commented favorably on the Solar Rights Law. Basically, that means that after a system is installed and before a neighbor goes for a building permit, it prevents structures being built next door that would shade your system, and therefore negate its effects.

Lamb handed out information that included 10 Web sites for federal and state credits, the Solar Market Development Income Tax Credit, Net Metering, the PNM Photovoltaic Buyback Program, pending legislation and other resources.

"The best single one is the EnergyStar site, and that is not the one with 407 pages," she said.

New Mexico Solar Energy Association-Alamogordo Chapter program director Jay Harrell said the next meeting will feature Xavier Ruiz of Southwest Home Energy Raters. "They come and rate homes for Energy Star certification. That's an EPA program, just like rating appliances," he said.

The meeting will be held at 6 p.m. Thursday, April 16, at the Alamogordo Public Library. Harrell said all those interested in learning more about solar energy are invited to attend.