Cities / New Mexico / Rebates
New Mexico Geothermal Ground Coupled Heat Pump Tax Credit: Open
Enrollment for 2026 is open. Open. A New Mexico individual taxpayer who installs a qualifying system on property they own may qualify for a refundable income tax credit.
Serves: Residences, businesses, or agricultural enterprises located in New Mexico.
Do I Qualify
- Be a New Mexico individual taxpayer who owns the installation property.
- Install a fully operating qualifying system through an IGSHPA-certified installer or an equivalent recognized installer.
- Pass the final building inspection.
How Much Comes Off
| Equipment | Requirement | Amount |
|---|---|---|
| Geothermal ground-coupled heat pump | COP ≥3.4 or EER ≥16; certified installer; final inspection. | $30 per percent of eligible purchase and installation costs |
Valid from May 15, 2024 to December 31, 2034.
Who Files It
The taxpayer applies to EMNRD and includes the approved certificate with the New Mexico income tax return.
The money is paid to the homeowner.
The Steps to Apply
- Install the system and obtain contractor and inspection documents.
- Request the certificate, then claim the credit on the state return. Apply for certification.
Read on October 22, 2026 from the New Mexico Energy, Minerals and Natural Resources Department page. A change to this program is a dated line in the changelog.