|Incentive Type:||Corporate Tax Credit|
|Eligible Efficiency Technologies:||Geothermal Heat Pumps|
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
HB 375, signed 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 tax payer. 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. 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 (NMAC 3.4.19) linked above.
Click here for more information.