New Mexico Sustainable Building Tax Credit

Overview
Termed by the Manufactured Housing Research Alliance as the “most aggressive green building tax credit legislation in the country,” the Sustainable Building Tax Credit (SBTC) was first introduced in New Mexico in 2007 to encourage the construction, manufacturing, and purchasing of energy efficient buildings and homes.

The SBTC is a tax credit obtained by achieving third-party certification through a green building rating system and meeting an energy efficiency requirement. Manufactured homes use the ENERGY STAR program.  This means that any manufacturer who manufactures homes out of an ENERGY STAR approved plant will enable the consumer to take advantage of the tax credit.

How It Works
A new Sustainable Building Tax Credit program was signed into law in April 2015 (Senate Bill 279), replacing the current program that has been in place since 2007.  The new SBTC guideline sets aside $375,000 per year for each year until 2026 for tax credits for manufactured homes constructed to ENERGY STAR Standards.  The tax credit amount is based on building type, occupied square footage, and the allowance in dollars per square foot ($/ft2) for the rating achieved.  So, a new manufactured home that is ENERGY STAR certified is eligible for a credit of $3/ft2 and this credit lasts up to 2,000/ft squared ($6,000 maximum). 

The tax credit can be used by the buyer of the ENERGY STAR home against their state income tax or can be transferred back to the manufacturer.  The tax credit can even be sold to a third-party broker, such as the New Mexico Tax Credit Alliance, allowing an immediate reduction on the cost of the home at closing,

Click Here for more information on the New Mexico Tax Credit Alliance!

How To Apply
To learn more about the New Mexico Sustainable Building Tax Credit, and for information on how to apply for the tax credit, Click Here