Geothermal Heat Pump Tax Credit (Personal)

March 10, 2023

Summary

H.B. 375, enacted in April 2009, created a New Mexico state tax credit 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 $2,000,000 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 above.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: New Mexico
Incentive Type: Personal 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: 1/1/2010
Eligible Renewable/Other Technologies:
  • Geothermal Heat Pumps
Incentive Amount: 30%
Maximum Incentive: $9,000 per system
Annual aggregate cap of $2 million in total personal and corporate 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

Incentives

This program has 1 incentives
Technologies: Geothermal Heat Pumps
Sectors: Residential
Parameters: The incentive is 30.00 %, The incentive has a minimum of $9000.00

Authorities

Name: N.M. Stat. § 7-2-18.24
Date Enacted: 04/09/09
Effective Date: 01/01/2010
Expiration Date: 12/31/2020
Name: NMAC 3.3.32
Date Enacted: 09/15/2010
Effective Date: 09/15/2010

Contact

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.