New Mexico Administrative Code
Title 3 - TAXATION
Chapter 3 - PERSONAL INCOME TAXES
Part 32 - CERTIFICATION FOR TAX CREDIT FOR GEOTHERMAL GROUND-COUPLED HEAT PUMPS
Section 3.3.32.12 - SYSTEM APPLICATIONS AND LISTS OF ELIGIBLE COMPONENTS

Universal Citation: 3 NM Admin Code 3.3.32.12

Current through Register Vol. 35, No. 18, September 24, 2024

A. Geothermal ground-coupled heat pump systems that the department may certify shall meet the following requirements:

(1) be made of new equipment, components and materials;

(2) have a written minimum two year warranty provided by the contractor on parts, equipment and labor with the following exceptions:
(a) the warranty provided by the contractor on each specific piece of equipment shall not exceed the duration and conditions of the warranty provided by the manufacturer of the equipment against defects in materials and workmanship; and

(b) the owner of the geothermal ground-coupled heat pump system may bear the actual cost of shipping the product for the repair and replacement;

(3) be a complete system that collects and distributes geothermal energy to the residence, business or agricultural enterprise in New Mexico that it serves;

(4) have a minimum coefficient of performance of three and four-tenths or an efficiency ratio of 16 or greater; and

(5) be a minimum one-ton system size.

B. Geothermal ground-coupled heat pump systems or their portions that the department shall not certify are as follows:

(1) a system or portion of a system that would be present if the geothermal ground-coupled heat pump system was not installed;

(2) a system that is not connected to a structure or foundation and does not serve a permanent end use energy load or is not permanently located in New Mexico;

(3) a system not serving an end use energy load; or

(4) a system or portion of a system that replaces a system or portion of a system the department has certified in a previous application for a tax credit.

C. System components and installation processes that the department may include in the cost calculation and certify include:

(1) the system applications of geothermal space heating, geothermal air heating, geothermal process heating, geothermal space cooling or combinations of geothermal system applications;

(2) collectors;

(3) pumps;

(4) fans;

(5) storage tanks;

(6) buffer tanks;

(7) expansion tanks;

(8) expansion valves;

(9) valves;

(10) "txv" valves;

(11) three-way valves;

(12) refrigerant compressors;

(13) chill water tanks;

(14) refrigerant reversing valves;

(15) controllers;

(16) heat exchangers;

(17) compressors;

(18) compressor gas;

(19) flow center circulators;

(20) tubing;

(21) tubing u-bend connections;

(22) tubing connections and fittings;

(23) manifolds;

(24) supply headers;

(25) expansion metering devices;

(26) desuperheaters;

(27) hot water tanks;

(28) heat exchange refrigerant;

(29) reverse return headers;

(30) thermostats;

(31) evaporators;

(32) borehole grout;

(33) borehole backfill sand or other medium;

(34) turnarounds;

(35) air handlers;

(36) above-ground fluid coolers;

(37) thermal conductivity testing; and

(38) all materials and costs associated with vertical well drilling and horizontal trenching including well casing and tubing.

Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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