1. A. A state tax credit or supplemental state tax credit shall be based on the equipment, materials, labor, design fees, permitting inspection fees, design review stamp and interconnections costs of a solar energy system the department has certified. Self-installed systems shall be eligible for these costs, except that self-installers may not claim their own labor but may claim labor they hire.
2. B. The equipment, materials, and labor costs of a solar energy system the department certifies shall be documented in an itemized invoice. An invoice shall itemize the following costs which include but are not limited to: permits, design, equipment, material, categorized fees, and installation labor of a solar energy system.

3. C. The cost of a solar energy system the department certifies shall be the net cost of acquiring the system and shall not include the following:

   1. (1) expenses, including but not limited to:

      1. (a) unpaid labor or the applicant’s labor;
      2. (b) unpaid equipment or materials;
      3. (c) land costs or property taxes;
      4. (d) costs of structural, surface protection and other functions in building elements that would be included in building construction if a solar energy system were not installed;
      5. (e) mortgage, lease or rental costs of the residence, business or agricultural enterprise;
      6. (f) legal and court costs;
      7. (g) research fees or patent search fees;
      8. (h) membership fees;
      9. (i) financing costs or loan interest;
      10. (j) marketing, promotional or advertising costs;
      11. (k) repair, operating or maintenance costs;
      12. (l) warranty or extended warranty costs;
      13. (m) system resale costs;
      14. (n) system visual barrier costs;
      15. (o) adjacent structure modification costs for building structures such as portals, garages, or pergolas to hold solar panels, or costs for modification or roof repair to hold solar panels;
      16. (p) vegetation maintenance costs including tree trimming;
      17. (q) contractor or inspector travel, mileage, or overnight hotel stays;
      18. (r) recreational vehicle or hot tub ports;
      19. (s) trenching exceeding 50 feet;
      20. (t) donations to food banks on the applicant’s behalf;
      21. (u) system critter guard;
      22. (v) non-descriptive miscellaneous items; and
      23. (w) excess battery storage that is not consistent with industry standards;

   2. (2) income, including:

      1. (a) payments the solar energy system contractor or other parties provide or receive that reduce the system cost, including rebates, discounts, grants and refunds, except for federal tax credits;
      2. (b) services, benefits, or material goods the solar energy system contractor or other parties provide by the same or separate contract, whether written or verbal.
4. D. The department shall make the final determination of the net cost of a solar energy system the department certifies pursuant to 3.3.14 NMAC.

[3.3.14.14 NMAC - Rp, 3.3.14.15 NMAC, 7/16/2024]