Solar incentives sunset as states grapple with tight budgets

Staff Writer
Columbus CEO

ALBUQUERQUE, N.M. (AP) — Homeowners and small businesses in the second sunniest state in the nation have invested nearly a quarter billion dollars in roof-top solar and related labor thanks to a program fueled by tax credits.

But the popular incentives will be going away after New Mexico lawmakers concerned about a budget crisis did not extend the 10 percent tax credit for installing solar.

In what has become a nationwide trend, state tax credits and other incentives aimed at boosting the solar industry are disappearing.

Of the 16 states that offer personal tax credits for solar, half have already had their credits expire or are in line to see them sunset over the next two years.

Some worry the lack of a tax credit will steal momentum from what has been one of New Mexico's few economic bright spots.