Is the New Mexico solar panel tax credit encoded in TurboTax Deluxe? If so, where is it?

[sammyjava]

I don't see it in the State tax section.

[Rhys67]

This might work, From the PIT Instructions for 2020:

Renewable Energy Production Tax Credit (R03)
Personal income and corporate income taxpayers receive credit for producing electricity by solar light or heat, wind, or biomass for an eligibility period of 10 consecutive years beginning on the date the qualified energy generator begins producing electricity.
Deduct, Refund, or Carry Forward for Five Years
This refundable credit is not currently available to apply for but you may deduct an existing credit from your personal income tax liability for which you are claiming the credit.
If the amount of the tax credit exceeds your personal income tax liability for the tax year, one of the following is possible:
•
If the tax credit was issued with respect to a qualified energy generator that first produced electricity using a qualified energy resource on or after October 1, 2007, the state refunds the excess to you. or
•
You may carry forward the excess credit for five years.
How To Claim This Credit
When you receive approval from EMNRD, follow these steps to claim the credit:
1.
Complete Form RPD-41227, Renewable Energy Production Tax Credit Claim Form.

2.
Complete PIT-CR. In the Credit Approval Number box, enter the last day of the tax year when the electricity was produced for which you are claiming a credit or a carryforward.
3.
Attach the following to your PIT-1:
•
RPD-41227
•
Certificate of eligibility from EMNRD
•
Allocation Notice approved by EMNRD, if applicable
•
PIT-CR
•
A copy of the letter from EMNRD certifying treatment as a qualified donation
4.
Submit your PIT-1 and all attachments.

[ErnieS0 · Accepted solution]

Yes, the New Mexico solar panel tax credit (a/k/a New Solar Market Development Tax Credit) is included in TurboTax Deluxe.

You’ll find this credit in Business Credits within the New Mexico portion of TurboTax.

• Click New Solar Market Development,
• Continue,
• Enter up to three credit certificates and the amount of credit applied to tax.

The New Solar Market Development Income Tax Credit was passed by the 2020 New Mexico Legislature. It provides a 10% tax credit with a value up to $6,000 for a solar system.

[TBeckmon]

One response read to enter up to three certificates.  Where do I get the certificate?

[Critter-3]

Whoever sold you the qualifying products should have given you that info ...  https://www.emnrd.nm.gov/ecmd/tax-incentives/

[mtboulder]

FYI. TurboTax does not seem to have Form TRD-41406 which is required by New Mexico to use your tax credit. You also need to send in a copy of your Certificate of Eligibility which won't be in TurboTax. I spoke to someone at the State office and they said you could efile with TT and then scan your missing documents and email them to [email address removed]  Their phone number is [phone number removed]. They were very helpful. 

[tlaf1]

Does Turbo Tax Deluxe not allow for a pdf to be added before e-filing? The forum removed the email address and phone number you listed. Hoping to not have to mail the paper version.

[LenaH]

Usually, if you have to add a PDF form, you will be prompted to add it on the state screens. 

For information on Form TRD-41406, with the email address and phone number to the New Mexico Taxation and Revenue Department, please go to the New Solar Market Development Tax Credit Claim Form. You can sign into the Taxpayer Access Point (TAP) - Submit a Document, and follow the prompts to attach this form to your return. 

@tlaf1

[mtboulder]

There is not a way to attach a pdf file to your e-file tax return. You can e-file your return and then send the back up documents via email to the NM solar development office. 

[Vander84]

I was able to find the correct part in TurboTax as well as the corresponding form TRD-41406.  Can someone explain the terminology used in the entry fields:  Amount Claimed Applied to Tax VS Amount of credit to refund?

Are these supposed to correspond with TRD-41406 #3 and #4?

3) Enter the portion of total credit being applied against the Net New Mexico income
tax due. Do not enter more than the amount of Net New Mexico personal or fiduciary
income tax due. If using a carryforward amount from a credit first claimed in 2020 or
2021, use Schedule A to calculate the amount of credit still available

4) Enter the portion of the total credit in excess of the Net New Mexico income tax
due that is being refunded. Enter only an amount from a credit claimed starting in tax
year 2022. Do not include a carry-forward amount from the 2020 or 2021 tax years. A
carry-forward from a prior year may not be refunded.

In my case, my income tax exceeds the tax credit, so I suspect that I should get a return from NM.  If I put my credit in both fields, it seems to add them together and overshoot my refund.  I'll put some imaginary numbers out there for help's sake.  If my NM tax is 20,000 and my tax credit is 5000, what should I put in the fields supplied? (including TRD-41406 if folks have that information)

Thanks!

[Critter-3]

Line 3 $5000  &  line 4 left blank

[Jteller51]

Hello this is my first time filling this out . I'm having fill out the form 41406 and I'm confused about the portion of net new mexico income before applying credit . Could anyone help 

[mtboulder]

When I applied for my Solar credit with State of NM in 2022 Form 41406 had to be filled out manually. Not sure if things have changed since then. 

[Jteller51]

I can upload it but I'm still stuck on line 2 and 3 on the 1st page

[mtboulder]

Line #2 should be what you owe for income taxes to NM before applying the Solar credit. 

Line #3 is how much of your solar credit do you want to apply to the amount on Line 2. If you credit is high enough to cover all of the amount in line 2 you should apply that amount. In other words line 2 and 2 would have the same value. IF you have Solar Credit left over you can roll that over to next year.