H.B. 375, enacted in April 2009, created a tax credit in New Mexico for geothermal heat pumps purchased and installed between January 1, 2010, and December 31, 2020, on property owned by the taxpayer. The credit is worth 30% of the system's cost up to $9,000 and can be applied to individual or corporate income taxes. Any unused credit may be carried forward for up to 10 years.
To qualify for the credit, system owners must file an application with the Energy, Minerals and Natural Resources Department (EMNRD). EMNRD will review and approve applications in the order they are received until the annual aggregate cap of $2 million in tax credits has been reached. For an application to be approved by EMNRD, systems must have either a minimum coefficient of performance of 3.4 or an efficiency ratio of 16 or greater and be installed by an accredited installer certified by the International Ground Source Heat Pump Association. Additional technical specifications and requirements relating to safety, building code and standards compliance, minimum system sizes, system applications, and lists of eligible components can be found in the New Mexico Administrative Code linked below.
| Implementing Sector: | State |
| Category: | Financial Incentive |
| State: | New Mexico |
| Incentive Type: | Corporate Tax Credit |
| Web Site: | http://www.emnrd.state.nm.us/ECMD/RenewableEnergy/geothermal.html |
| Administrator: | New Mexico Energy, Minerals and Natural Resources Department |
| Start Date: | 01/01/2010 |
| Eligible Renewable/Other Technologies: |
|
| Incentive Amount: | 30% |
| Maximum Incentive: |
$9,000 per system Annual aggregate cap of $2 million in total corporate and personal tax credits |
| Equipment Requirements: |
Systems must have a minimum coefficient of performance of 3.4, or an efficiency ratio of 16 Must meet other standards described in NMAC 3.4.19 |
| Installation Requirements: |
Systems must be installed by an accredited installer certified by the International Ground Source Heat Pump Association Must meet other standards described in NMAC 3.4.19 |
| Carryover Provisions: | Unused credit may be carried forward for 10 years |
| Technologies: | Geothermal Heat Pumps |
| Sectors: | Commercial, Agricultural |
| Parameters: | The incentive is 30.00 %, The incentive has a minimum of $9000.00 |
| Name: | N.M. Stat. § 7-2A-24 |
| Date Enacted: | 04/09/2009 |
| Effective Date: | 01/01/2010 |
| Expiration Date: | 12/31/2020 |
| Name: | NMAC 3.4.19 |
| Date Enacted: | 09/15/2010 |
| Effective Date: | 09/15/2010 |
| Name: | Rachel Herrera |
| Organization: | Energy Conservation and Management Division |
| Address: |
1220 South St. Francis Drive Santa Fe NM 87505 |
| Phone: | (505) 476-3251 |
| Email: | rachel.herrera@state.nm.us |
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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