N.M. Admin. Code § 3.2.247.7

Current through Register Vol. 35, No. 23, December 10, 2024

Section 3.2.247.7 - DEFINITIONS

The terms and phrases defined in 3.2.247.7 NMAC apply to the implementation of the deduction pursuant to Section 7-9-112 NMSA 1978.

A.Equipment: "Equipment" means an essential machine, mechanism, or a component or fitting thereof, used directly and exclusively in the installation or operation of a solar energy system. Equipment is included in the solar energy system when the cost can be included in the basis of the solar energy system as established under the applicable provisions of the Internal Revenue Code of 1986.

B.Trombe wall: A "trombe wall" is a sun-facing wall built from material that can act as a thermal mass, such as stone, concrete, adobe or water tanks, combined with an air space and glass to form a solar thermal collector.

C.Solar panel: A "solar panel" is a solar thermal collector, such as a solar hot water or air panel used to heat water, air or otherwise collect solar thermal energy. "Solar panel' may also refer to a photovoltaic system.

D.Solar thermal collector: A "solar thermal collector" means an energy system that collects or absorbs solar energy for conversion into heat for the purposes of space heating, space cooling or water heating.

E.Solar thermal energy: "Solar thermal energy" is a technology for harnessing solar power for practical applications from solar heating to electrical power generation.

F.Photovoltaic system: A "photovoltaic system" means an energy system that collects or absorbs sunlight for conversion into electricity.

G.Installation of a solar energy system: The "installation of a solar energy system" includes replacement of some part of the system, or a similar change to the system that would qualify as an adjustment to basis for federal income tax purposes. Labor for maintenance or service of a solar energy system does not qualify for the deduction in the absence of an installation of some part of the system. Labor to perform post-installation adjustments to the solar energy system qualifies for the deduction when the adjustments are performed to optimize the operation of the solar energy system as part of the initial installation and are performed within one year of the initial installation.

H.Solar energy system: A "solar energy system" as defined in Subsection B of Section 7-9-112 NMSA 1978, includes components or systems for collecting and storing energy, but does not include components or systems related to the use of the energy. Examples of use would include the pipes carrying heated water to a faucet or the electrical wire carrying electricity to an outlet.

N.M. Admin. Code § 3.2.247.7

3.2.247.7 NMAC - N, 3/14/08