Federal Incentives

With the passage of the OBBB Act in 2025, most of Federal tax credits for residential energy efficiency and clean energy improvements were rescinded as of Dec. 31, 2025.  Congratulations if you were able to upgrade your home or get a cleaner car before the end of the year.

There are still two Federal tax credit programs that may help homeowners.

• A tax credit for installing EV charging equipment at homes or businesses before June 30, 2026. This Alternative Fuel Refueling Property Credit (Section 30C) is available for people living in specific location. If you reside in a non-urban tract or low-income census track you may qualify for 30% up to $1,000 for a charger installed after Jan. 1, 2025 or in these tracts if the charger was installed before that date.  (Subtract utility/manufacturer rebates from cost).
• Solar companies that install systems at your residence then lease the panels or provide a Power Purchase Agreement (PPA) may still claim the Federal 30% Investment Tax Credit.  They are not required to pass along this savings to you, but you can ask them for a lower, negotiated electricity rate (PPA) or lower monthly lease payments.

Some of the Inflation Reduction Act funds aimed at upgrading income-limited households were not clawed back and are supporting New Mexico rebate programs.