What ended and what did not
The 30 percent federal Residential Clean Energy Credit under Section 25D expired for property placed in service after December 31, 2025. A cash or loan purchase now receives no federal tax credit.
Section 48E, the commercial Clean Electricity Investment Credit, survives at 30 percent and is available to third-party owners of residential systems under leases and power purchase agreements. The provider claims it rather than you.
What did not change is the state side. The Solar Market Development Tax Credit remains at 10 percent up to $6,000, the gross receipts tax deduction still applies to equipment and installation labour, and the property tax exemption still covers the value the system adds.
Net metering at the retail rate also remains, which after the changes made in Georgia, Utah, Connecticut and elsewhere is now a real point of difference rather than a baseline expectation.
The lease question has a New Mexico twist
Because Section 48E survives for third-party owners, leases and power purchase agreements are being promoted harder in 2026 as the remaining route to a 30 percent federal credit.
In New Mexico that decision carries an extra consideration. Under a lease or power purchase agreement you generally do not own the system, and the state Solar Market Development Tax Credit requires that you own or hold in leasehold a property with a certified system that qualifies.
So the trade may be giving up a state credit worth up to $6,000 in exchange for an indirect share of a federal credit claimed by someone else and passed on only through the rate you are offered.
Ask explicitly whether you would still be eligible for the state credit under the proposed structure, and ask for the side-by-side against a cash purchase with the state credit included. Confirm the tax treatment with a tax advisor rather than with the salesperson.
The resource, and checking the estimate uses it
Eastern New Mexico has a strong solar resource with high sunshine hours, and the installed cost here is low by national standards at around $2.70 per watt. Both work in your favour.
Ask what data source the annual production estimate used and whether it applies location-specific irradiance for your address rather than a state average. Ask for the figure in kilowatt hours per year rather than only as a dollar saving.
Ask how the model treats high summer module temperatures. Panels lose efficiency as they heat, and a hot dry summer is exactly the condition where a generic estimate overstates output.
Ask about dust and soiling too. In a dry, windy region soiling losses are real, and a model that assumes none is describing a cleaner environment than the one your panels will sit in.
What a projection here needs to contain
Strike the federal residential credit from any quote that shows it, since Section 25D expired for property placed in service after December 31, 2025.
Keep the state Solar Market Development Tax Credit at 10 percent up to $6,000, checking it is not stated at the 30 percent that Senate Bill 55 would have created and did not, and remember it runs first come first served against a $30 million annual cap.
Add the gross receipts tax deduction, the property tax exemption, and retail-rate net metering under the arrangement matching your utility and system size.
Then add the electricity you stop buying, from a production estimate that accounts for summer heat and soiling. Ask for that version in writing with each line named.