{"id":15108,"date":"2024-08-20T08:30:56","date_gmt":"2024-08-20T14:30:56","guid":{"rendered":"https:\/\/www.emnrd.nm.gov\/ecmd\/?page_id=15108"},"modified":"2025-01-15T13:35:27","modified_gmt":"2025-01-15T20:35:27","slug":"geothermal-ground-coupled-heat-pump-income-tax-credit-7-2-18-24","status":"publish","type":"page","link":"https:\/\/www.emnrd.nm.gov\/ecmd\/faq\/geothermal-ground-coupled-heat-pump-income-tax-credit-7-2-18-24\/","title":{"rendered":"Geothermal Ground-Coupled Heat Pump Income Tax Credit (7-2-18.24)"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.16″ _module_preset=”ce4db8ec-b34b-42ae-b247-103d0a13f28d” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ _module_preset=”1d9c0f5d-35f2-480d-b415-624f9e38b5a0″ global_colors_info=”{}”][et_pb_column type=”4_4″ module_class=”vertical-align” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_post_title meta=”off” featured_image=”off” _builder_version=”4.24.2″ _module_preset=”default” title_text_color=”#030303″ custom_margin=”||0px||false|false” global_colors_info=”{}”][\/et_pb_post_title][et_pb_dmb_breadcrumbs font_icon=”%%20%%” use_home_icon=”off” _builder_version=”4.16″ _module_preset=”default” body_text_color=”#030303″ body_font_size=”18px” link_text_color=”#030303″ global_colors_info=”{}”][\/et_pb_dmb_breadcrumbs][et_pb_divider _builder_version=”4.24.2″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ specialty=”on” module_class_1=”sidebar” disabled_on=”off|off|off” _builder_version=”4.16″ _module_preset=”default” inner_width=”90%” inner_max_width=”1400px” global_colors_info=”{}”][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”Explore Section” use_icon=”on” font_icon=”||divi||400″ icon_color=”#ffffff” icon_placement=”left” image_icon_width=”14px” content_max_width=”100%” disabled_on=”off|off|on” module_class=”blurb-icon-right sidebar-toggle” _builder_version=”4.16″ _module_preset=”c520cd6f-2a5a-44ab-ba51-0c6b314ff487″ header_font=”|600|||||||” header_text_color=”#ffffff” header_font_size=”13px” header_line_height=”1.3em” body_font=”||||||||” body_text_color=”rgba(40,39,40,0.7)” body_font_size=”12px” body_line_height=”1.3em” background_color=”#1D4784″ use_background_color_gradient=”on” background_color_gradient_direction=”145deg” background_color_gradient_stops=”#1d4784 0%|#0585a5 100%” background_color_gradient_start=”#1d4784″ background_color_gradient_end=”#0585a5″ max_width=”100%” module_alignment=”center” custom_margin=”||14px||false|false” custom_padding=”12px|4px|12px|16px|true|false” border_radii=”on|6px|6px|6px|6px” border_width_bottom=”1px” border_color_bottom=”#dedede” icon_font_size=”14px” global_colors_info=”{}”][\/et_pb_blurb][et_pb_sidebar area=”et_pb_widget_area_4″ module_class=”sofia-light nav-side” _builder_version=”4.16″ _module_preset=”default” body_text_color=”#212121″ body_font_size=”15px” body_line_height=”1em” global_colors_info=”{}”][\/et_pb_sidebar][\/et_pb_column][et_pb_column type=”3_4″ specialty_columns=”3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_row_inner _builder_version=”4.16″ _module_preset=”default” custom_padding=”||1em||false|false” global_colors_info=”{}”][et_pb_column_inner saved_specialty_column_type=”3_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.0″ _module_preset=”default” custom_padding=”0px|||||” global_colors_info=”{}”]<\/p>\n

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FAQs:<\/span><\/b><\/p>\n

Geothermal Ground-Coupled Heat Pump Income Tax Credit (7-2-18.24)<\/span><\/b>\u00a0<\/span><\/h2>\n

The New Mexico Legislature enacted this tax credit in 202<\/span>4<\/span> to encourage New Mexico taxpayers to install high-efficiency ground-coupled heat pumps in their residences, businesses or agriculture enterprises. \u00a0<\/span> \u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

1) <\/span><\/b> When does the tax credit start?<\/span><\/b> <\/span><\/p>\n

The tax credit is available for systems installed after January 1, 2024.<\/p>\n

<\/span><\/p>\n

2)\u00a0\u00a0 When does the Heat Pump tax credit expire?<\/span><\/b>\u00a0<\/span><\/p>\n

December 31, 2034<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

3) When will the electronic portal be open to accept applications?<\/span><\/b>\u00a0<\/span><\/p>\n

We expect the portal to open this fall after new rules, as required by law, are formally adopted.<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

4) Who are the tax credits available for?<\/span><\/b>\u00a0<\/span><\/p>\n

Owners of New Mexico Residents, Businesses or Agricultural enterprises\u00a0<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

5) What are the heat pump efficiency requirements?<\/span><\/b>\u00a0<\/span><\/p>\n

Efficiency Ratio of 16 <\/span>OR<\/span><\/b> Coefficient of Performance (COP) of 3.4. The heat pumps must have been tested and certified by an independent 3<\/span>rd<\/span> party nationally recognized heating and cooling equipment testing facility, such as the Air-conditioning, heating, & Refrigeration Institute, and meet the latest energy star requirements.\u00a0<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

6) What is the cost benefit for receiving a tax credit?<\/span><\/b>\u00a0<\/span><\/p>\n

Receive 30% of the cost of materials and installations not to exceed $9,000 per individual taxpayer.<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

7) Is there a limit for the tax credit?<\/span><\/b>\u00a0<\/span><\/p>\n

The credit shall not exceed $9,000 per individual taxpayer.<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

8) What if the tax credit exceeds my tax liability?<\/span><\/b>\u00a0<\/span><\/p>\n

The taxpayer will receive a refund in the amount of the tax credit that exceeds their tax liability.<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

9) Is there a maximum funding cap for NM?<\/span><\/b>\u00a0<\/span><\/p>\n

Yes, the maximum funding cap per year is $4 million.<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

10) Is the tax credit first-come, first served?<\/span><\/b>\u00a0<\/span><\/p>\n

Yes, the order of acceptance is\u202f\u201cfirst come, first served.\u201d.<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

11) Can I combine this tax credit with the NM Sustainable Building Tax Credit?<\/span><\/b>\u00a0<\/span><\/p>\n

No, it is not allowable to use the NM Sustainable Building Tax Credit in combination with the heat pump tax credit.<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

12) Can I share this tax credit with other business owners?<\/span><\/b>\u00a0<\/span><\/p>\n

Yes, the credit can be shared in proportion to the ownership of a business enterprise.<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

13) What if I file separately from my spouse?<\/span><\/b>\u00a0<\/span><\/p>\n

Husband and Wife:\u202fCouples filing separately can only claim half the credit.\u202f\u00a0<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

14) What if my business is a corporation?<\/span><\/b>\u00a0<\/span><\/p>\n

A Corporation may also get a 30% tax credit up to a maximum of $9000.<\/span>\u00a0<\/span><\/p>\n

<\/span><\/b><\/p>\n

15) What items are covered by the tax credit.<\/span><\/b>\u00a0<\/span><\/p>\n

The tax credit may be applied to geothermal space heating, geothermal air heating, geothermal process heating, geothermal space cooling or combination of geothermal system applications.\u00a0 The tax credit will only cover the cost of materials and installation of items directly connected to the system that are necessary for the system to function as intended.<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

<\/span><\/b>—<\/p>\n

\u00a0<\/span>For further questions please email our main office email: emnrd.ecmd@emnrd.nm.gov<\/a><\/span><\/p>\n

\u00a0<\/span><\/p>\n