New Mexico Allows WERS Program for Sustainable Building Tax Credit Compliance

February 24, 2016 – Since 2009, the state of New Mexico has offered a sustainable building tax credit to its builders. It has been a strong driver of sustainable homebuilding throughout the state. The program, operated by Build Green New Mexico, is both very popular and lucrative, with a maximum tax credit of $13,000 per house. So it was no surprise that the program ran out of money well ahead of schedule. When the state legislature was asked to extend the tax credit, state politicians stipulated that the water efficiency requirement be increased.

Starting on January 1, 2017, an “owner of a building in New Mexico that has been constructed, renovated or manufactured to be a sustainable residential building and that receives certification… may receive a certificate of eligibility for a new sustainable building tax credit”. When the owner files their documentation, they will be allowed to attach a WERS report to show compliance with the new water efficiency requirement. The WERS program joins Build Green New Mexico and LEED for Homes as compliance paths for water.

Kim Shanahan, Executive Officer of the Santa Fe Area Home Builders Association, was a big proponent of WERS’ inclusion in the tax credit extension. “The original language in the legislation simply said a new home had to meet EPA WaterSense. But WaterSense only measures products and only few products at that. We knew we needed something that could account for all water usage, no matter the product labeling, and for both inside and outside the house. The WERS tool does exactly that,” Shanahan explained.

“The state’s decision to include the WERS program is a testament to how comprehensive and robust WERS is, and it really legitimizes the 2+ years of work the development group has put into WERS” said Green Builder® Coalition Executive Director Mike Collignon. “We look forward to supporting all New Mexican homebuilders who choose to utilize this compliance path.” The inaugural WERS training course will take place March 8-10 at the Santa Fe Community College. To enroll in the class, please contact Amanda Hatherly.

Since February 2014, The Coalition has helped develop the WERS program for new and existing residential properties. It was first used in November 2015 to help a New Mexico homebuilder save significant time and money on his pursuit of a local building permit.