Section 12. Application Review Process

A. The department considers applications in the order received, according to the day they are received, but not the time of day. B. The department approves or disapproves an application package following the receipt of the complete application package. The department disapproves an incomplete or incorrect application. The department’s disapproval letter shall state the reasons why the department disapproved the application. The applicant may resubmit the application package for the disapproved project. The department places the resubmitted application in the review schedule as if it were a new application. 3.4.22 NMAC 9 C. The department reviews the application package to calculate the maximum 2021 sustainable building tax credit, check accuracy of the applicant’s documentation and determine whether the department issues a certificate of eligibility for the 2021sustainable building tax credit. D. If an applicant has claimed a new solar market development income tax credit that solar system cannot be used to meet the requirements of either the certification level applied for or the energy reduction achieved. If an applicant has received a new solar market development income tax credit for a system used to meet the requirements of the certification level applied for or the energy reduction achieved, the department shall disapprove the application for the 2021 sustainable building tax credit. The applicant may submit a revised application package to the department that does not include the electricity projected to be generated by the solar system. The department places the resubmitted application in the review schedule as if it were a new application. E. If the department finds the application package meets the requirements and a 2021 sustainable building tax credit is available, the department issues the certificate of eligibility for a 2021 sustainable building tax credit as provided in 3.4.22.8 NMAC d to be generated by the solar system. The department places the resubmitted application in the review schedule as if it were a new application. E. If the department finds the application package meets the requirements and a 2021 sustainable building tax credit is available, the department issues the certificate of eligibility for a 2021 sustainable building tax credit as provided in 3.4.22.8 NMAC. The notification shall include the taxpayer’s contact information, taxpayer identification number, certificate of eligibility number or numbers, the rating system certification level awarded to the building, the amount of qualified occupied square footage in the building, a calculation of the maximum amount of 2021 sustainable building tax credit for which the owner would be eligible, date of issuance and the first and any subsequent taxable year(s) the credit shall be claimed. F. If the department finds the application package for energy conservation products meets the requirements and a 2021 sustainable building tax credit is available, the department issues the certificate of eligibility for a 2021 sustainable building tax credit as provided in 3.4.22.8 NMAC. The notification shall include the taxpayer’s contact information, taxpayer identification number, certificate of eligibility number or numbers, energy-conserving product certified, a calculation of the maximum amount of 2021 sustainable building tax credit for which the owner would be eligible, date of issuance and the first and any subsequent taxable year(s) the credit shall be claimed. G. The certificate shall state the energy conservation product that is certified and that the certificate is for an affordable or non-affordable sustainable building project. [3.4.22.12 NMAC - Rp, 3.4.22.12 NMAC, 07/12/2022] 3.4.22.13 CALCULATING THE TAX CREDIT FOR THE 2021 SUSTAINABLE BUILDING TAX CREDIT: A of issuance and the first and any subsequent taxable year(s) the credit shall be claimed. G. The certificate shall state the energy conservation product that is certified and that the certificate is for an affordable or non-affordable sustainable building project. [3.4.22.12 NMAC - Rp, 3.4.22.12 NMAC, 07/12/2022] 3.4.22.13 CALCULATING THE TAX CREDIT FOR THE 2021 SUSTAINABLE BUILDING TAX CREDIT: A. The department calculates the maximum 2021 sustainable building tax credit based on the qualified occupied square footage of the sustainable building, the rating system under which the applicant achieved certification and the certification level the applicant achieved. The tax credit for various square footages is specified in the chart below. Sustainable commercial building that is broadband ready and electric vehicle ready and is completed after January 1, 2022: LEED-NC platinum first 10,000 square feet equals the qualified square footage up to 10,000 multiplied by $5.25 LEED-NC platinum next 40,000 square feet equals the qualified square footage greater than 10,000 up to 40,000 multiplied by $2.25 LEED-NC platinum over 50,000 up to 200,000 square feet equals the qualified square footage greater than 50,000 up to 200,000 multiplied by $1.00 LEED-EB (O&M) or CS platinum first 10,000 square feet equals the qualified square footage up to 10,000 multiplied by $3.40 LEED-EB (O&M) or CS platinum next 40,000 square feet equals the qualified square footage greater than 10,000 up to 40,000 multiplied by $1.30 LEED-EB (O&M) or CS platinum over 50,000 up to 200,000 square feet equals the qualified square footage greater than 50,000 up to 200,000 multiplied by $0.35 LEED-CI platinum first 10,000 square feet equals the qualified square footage up to 10,000 multiplied by $1.50 LEED-CI platinum next 40,000 square feet equals the qualified square footage greater than 10,000 up to 40,000 multiplied by $0.40 3.4.22 NMAC 10 LEED-CI platinum over 50,000 up to 200,000 square feet equals the qualified square footage greater than 50,000 up to 200,000 multiplied by $0.35 LEED-CI platinum first 10,000 square feet equals the qualified square footage up to 10,000 multiplied by $1.50 LEED-CI platinum next 40,000 square feet equals the qualified square footage greater than 10,000 up to 40,000 multiplied by $0.40 3.4.22 NMAC 10 LEED-CI platinum over 50,000 up to 200,000 square feet equals the qualified square footage greater than 50,000 up to 200,000 multiplied by $0.30 LEED-NC gold first 10,000 square feet equals the qualified square footage up to 10,000 multiplied by $3.00 LEED-NC gold next 40,000 square feet equals the qualified square footage greater than 10,000 up to 40,000 multiplied by $1.00 LEED-NC gold over 50,000 up to 200,000 square feet equals the qualified square footage greater than 50,000 up to 200,000 multiplied by $0.25 LEED-EB (O&M) or CS gold first 10,000 square feet equals the qualified square footage up to 10,000 multiplied by $2.00 LEED-EB (O&M) or CS gold next 40,000 square feet equals the qualified square footage greater than 10,000 up to 40,000 multiplied by $1.00 LEED-EB (O&M) or CS gold over 50,000 up to 200,000 square feet equals the qualified square footage greater than 50,000 up to 200,000 multiplied by $0.25 LEED-CI gold first 10,000 square feet equals the qualified square footage up to 10,000 multiplied by $0.90 LEED-CI gold next 40,000 square feet equals the qualified square footage greater than 10,000 up to 40,000 multiplied by $0.40 LEED-CI gold over 50,000 up to 200,000 square feet equals the qualified square footage greater than 50,000 up to 200,000 multiplied by $0.10 Additional criteria fully electric buildings first 50,000 square feet equals the qualified square footage up to 50,000 multiplied by $1.00 fully electric buildings over 50,000 up to 200,000 square feet equals the qualified square footage greater than 50,000 up to 200,000 multiplied by $0.50 zero carbon, energy, waste or water certified first 50,000 square feet equals the qualified square footage up to 50,000 multiplied by $0.25 zero carbon, energy, waste square feet equals the qualified square footage up to 50,000 multiplied by $1.00 fully electric buildings over 50,000 up to 200,000 square feet equals the qualified square footage greater than 50,000 up to 200,000 multiplied by $0.50 zero carbon, energy, waste or water certified first 50,000 square feet equals the qualified square footage up to 50,000 multiplied by $0.25 zero carbon, energy, waste or water certified over 50,000 square feet up to 200,000 square feet equals the qualified square footage greater than 50,000 up to 200,000 multiplied by $0.10 Renovation of commercial building at least 10 years old with at least 20,000 square feet of qualified occupied square footage in which temperature is controlled and is broadband and electric vehicle ready effective January 1, 2021: renovation that reduces total energy consumption by 50% when compared to the most current energy standard for buildings except low-rise residential buildings as developed by american society of heating, refrigerating and air-conditioning engineers equals qualified square footage multiplied by $2.25 up to a maximum of $150,000 per renovation For the installation of these energy conserving products for renovation of sustainable affordable and non- affordable commercial buildings less than 20,000 square feet of space in which temperature is controlled and is broadband ready effective January 1, 2021: Product affordable housing non-affordable housing 3.4.22 NMAC 11 energy star air source heat pump $2,000 including product and installation costs and associated electrical connection costs $1,000 including product and installation costs and associated electrical connection costs energy star ground source heat pump $2,000 including product and installation costs and associated electrical connection costs $1,000 including product and installation costs per product installed and associated electrical connection costs energy star windows and doors one hundred percent of product and installation costs up to $1,000 fifty percent of product and insta electrical connection costs energy star ground source heat pump $2,000 including product and installation costs and associated electrical connection costs $1,000 including product and installation costs per product installed and associated electrical connection costs energy star windows and doors one hundred percent of product and installation costs up to $1,000 fifty percent of product and installation costs up to $500 per product installed insulation improvements that meet department’s rules one hundred percent of product and installation costs up to $2,000 fifty percent of product and installation costs up to $1,000 per product installed energy star heat pump water heater $700 including product and installation costs and associated electrical connection costs $350 including product and installation costs per product installed and associated electrical connection costs electric vehicle ready one hundred percent of product and installation costs up to $3,000 and associated electrical connection costs fifty percent of product and installation costs up to $1,500 per product installed and associated electrical connection costs For construction of a new sustainable residential building that is broadband ready and electric vehicle ready and completed after January 1, 2022: LEED-H platinum equals the qualified square footage up to 2,000 multiplied by $5.50 LEED-H gold equals the qualified square footage up to 2,000 multiplied by $3.80 build green emerald equals the qualified square footage up to 2,000 multiplied by $5.50 build green gold equals the qualified square footage up to 2,000 multiplied by $3.80 manufactured housing equals the qualified square footage up to 2,000 multiplied by $2.00 Additional criteria fully electric building equals the qualified square footage up to 2,000 multiplied by $1.00 zero carbon, energy, waste or water certified equals the qualified square footage up to 2,000 multiplied by $0.25 For installation of energy conserving products for renovation of affordable and non-affordable existing r equals the qualified square footage up to 2,000 multiplied by $2.00 Additional criteria fully electric building equals the qualified square footage up to 2,000 multiplied by $1.00 zero carbon, energy, waste or water certified equals the qualified square footage up to 2,000 multiplied by $0.25 For installation of energy conserving products for renovation of affordable and non-affordable existing residential buildings effective January 1, 2021: Product affordable housing and low income non-affordable housing and non-low income energy star air source heat pump $2,000 including product and installation costs (per product installed if the applicant is a low- income taxpayer) $1,000 including product and installation costs per product installed energy star ground source heat pump $2,000 including product and installation costs (per product installed if the applicant is a low- income taxpayer) $1,000 including product and installation costs per product installed 3.4.22 NMAC 12 energy star windows and doors one hundred percent of product and installation costs up to $1,000 (per product installed if the applicant is a low-income taxpayer) fifty percent of product and installation costs up to $500 per product installed insulation improvements that meet department’s rules one hundred percent of product and installation costs up to $2,000 (per product installed if the applicant is a low-income taxpayer) fifty percent of product and installation costs up to $1,000 per product installed energy star heat pump water heaters $700 including product and installation costs (per product installed if the applicant is a low- income taxpayer) $350 including product and installation costs per product installed electric vehicle ready $1,000 including product and installation costs (per product installed if the applicant is a low- income taxpayer) $500 including product and installations costs per product installed B er heaters $700 including product and installation costs (per product installed if the applicant is a low- income taxpayer) $350 including product and installation costs per product installed electric vehicle ready $1,000 including product and installation costs (per product installed if the applicant is a low- income taxpayer) $500 including product and installations costs per product installed B. Energy conservation products shall meet the specified energy star rating performance requirements at the installed location. energy star zones for New Mexico south-central zone Chavez, Dona Ana, Eddy, Hidalgo, Lea, Luna and Otero counties north-central zone Bernalillo, Cibola, Curry, De Baca, Grant, Guadalupe, Lincoln, Quay, Roosevelt, Sierra, Socorro, Union and Valencia counties northern Catron, Colfax, Harding, Los Alamos, McKinley, Mora, Rio Arriba, San Juan, San Miguel, Sandoval, Santa Fe, Taos and Torrance counties