Renters, Landlords & Builders
Renters
There are fewer incentives for renters than homeowners, unfortunately. What is available:
- Federal and State EV tax credits even if you don’t pay taxes. Federal tax credits expire Sept. 30, 2026.
- If you pay federal taxes, you and NOT your landlord, are eligible for federal tax credits on a variety of energy efficiency upgrades and equipment including heat pumps, solar, heat pump water heaters, energy audits, and panel upgrades. These will expire in Dec. 31, 2025.
- Utilities and Coops rebates
- Housing NM no-cost energy and weatherization programs
- YES Housing offers energy efficient apartments to low-income residents.
- New Mexico HEAR Rebates may be available for renters in the future. Put your info here to check if they are accepting renters.
Renters can play a part in the energy transition. When you are looking for a rental ask questions about the energy efficiency of the appliances and building. Tell landlords, property managers and neighbors about incentives and programs that increase energy efficiency, lower indoor air pollution, and allow access to lower cost solar energy and to EV chargers. These improvements benefit everyone. They can be selling points for landlords; several New Mexico apartment complexes advertise EV chargers to attract tenants.
Consider buying portable appliances that you can take with you. For example, consider a portable induction cooktop or a window-unit heat pump. Electrify Now’s fact sheet on Portable Heat Pumps. Feb 2024 Canary article on portable heat pumps.
Rebates
If you pay your utility bill directly, check with your electricity provider, including rural electric coops, for additional rebates. Renters are eligible for the PNM Home Energy Checkup program, which gives out LEDs and other free energy-efficient materials if they live in a building with 4 or fewer apartments, pay the PNM bill and meet certain income limits. Housing NM’s Energy$mart Program provides energy-saving retrofits and home modifications at no charge to eligible homeowners and renters.
Unfortunately, for the HEAR rebates in New Mexico (heat pump clothes dryer and electric or a non-portable induction stove available now) you must own and live in a single-family home, duplex, triplex, quadplex, or townhome. Check to see if they have opened the rebates to renters.
See more incentives for renters and The Switch is On‘s Kitchens Electrification for Renters.
Tax credits
Renters can save on new, used and leased electric & hybrid vehicles with federal and state tax credits. They can lower the price of select new EVs by up to $10,500 and used ones up to $6,500. Federal tax credits are transferable to EV dealers to immediately lower the price at the time you buy, but not all dealers are participating in this option. PNM offers additional $4,000 rebates to about 225 of its income-limited customers, and El Paso Electric has funds for 50 people. (Check out suggestions for renters in Electric Vehicles and EV Chargers and in Resources for Low-Income Residents about driving electric and rebates for chargers). Federal tax credits for EVs and plug-in-hybrids, new, used and leased end Sept. 30, 2025 thanks to the GOP Megabill. State tax credits will still be available.
Renters, and not landlords, may obtain the following nonrefundable federal tax credits for energy efficiency upgrades and appliances, according to this IRA page. This includes energy audits, heat pumps, heat pump water heaters, solar water heaters, solar electric, small wind, geothermal heat pumps, battery storage, air conditioners, and electric panel upgrades. The credits are 30% of the costs minus any rebates (excluding state incentives). If your income is high enough (you usually pay federal taxes greater than the amount of the credit), it might be worth talking to your landlord about splitting the cost or lowering the rent in return for improvements to the property. Click on the links below for the fine print. Federal tax credits expire Dec. 31, 2025 due to the GOP Megabill.
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- Energy Efficient Home Improvement Credit for home energy audits, qualified heat pumps, heat pump water heaters and other appliances, and windows, doors, insulation and other weatherization measures.
- Residential Clean Energy Property Credit for 30% of equipment and installation costs of Solar Panels, Solar Water Heaters, Geothermal Heat Pumps, and Battery Storage.
Renewable Energy
Even as a renter with no solar panels on your roof, your power can come from clean energy. Sign up for a green power plan with your electricity provider such as PNM’s Sky Blue program (this costs more). Or subscribe to a Community Solar project for a possibly discounted electricity rate.
Landlords and Builders
Please consult your tax adviser for complete information on rebates, tax credits and tax deductions you may qualify for. 350NM is not responsible for the accuracy of the tax information presented on our website. We have not updated this information since the passage of the GOP Megabill.
Watch landlord Lincoln Eccles and BlocPower CEO Donnel Baird discuss why and how they install heat pumps in apartment buildings. Baird wants to turn buildings into Teslas.
Tax deduction best for large apartment owners/builders. The Inflation Reduction Act expanded the Section 179D Tax Deduction to offer up to $5.00/ft2 for energy-efficiency construction or retrofit of a commercial property (like an apartment building or leased residence) from January 1, 2023 until 2032. The maximum deduction is for projects that meet wage and apprenticeship requirements. Improvements or installations include interior lighting, building envelope (e.g, windows, doors, roof), HVAC, ventilation and hot water systems. The deduction can go to building owners or the professionals who design the upgrades for tax-exempt entities (including schools, tribal and other governments, non-profits). It can be used in combination with the 45L tax credit. See this article and consult a tax advisor for more information.- Tax credit for new or renovated single or multifamily construction for energy efficiency. The Inflation Reduction Act enhanced the New Energy Efficient Home credit, or 45L Tax Credit for Zero Energy Ready Homes to provide $1,000 per unit in buildings constructed in accordance with the ENERGY STAR Multifamily New Construction (MFNC) program or $5,000 per unit if the project complies with prevailing wage requirements.
Rebates. Landlords of single- and multi-family units (as well as homeowners) can save through the Home Energy Performance-Based Whole-House (HOMES) rebate program of the Inflation Reduction Act if they can demonstrate energy savings ($2,000 rebate for 20% energy savings and $4,000 rebate for greater 35% capped at 50% of the project cost; Doubled for low- and moderate-income households, capped at 80% of project cost). In homes in disadvantaged communities, contractors receive $200. HOMES and IRA HEEHRA rebates cannot be combined together for the same piece of equipment, but rebates can be stacked with tax credits. Like the IRA HEEHRA rebate program, the HOMES program relies on guidance from the Department of Energy and will be administered by New Mexico which is required to submit a plan, so not all the details are known at this time. The program rollout also depends on first developing metrics for measuring energy reduction. So it may not become active until 2025 or later.- Also check out State Incentives (SBTC is available for landlords) and electricity provider programs for EV Chargers on our EV Charger page.
- ChargePoint’s EV Charging Incentives for Businesses