Receive up to $10,000 for a Qualifying Heat Pump
What Is a Heat Pump?
A heat pump uses electricity to move heat between the inside and the outside of a building, providing heating and cooling. Heat pumps are more efficient than traditional heating and cooling systems, offer 2 services in one, and can cost less to operate. Most refrigerators are one-way heat pumps.
How it works:
Heating:Â A heat pump extracts heat from the outside air and moves it inside the building.
Cooling:Â A heat pump moves heat from inside the building to the outside.
Components:Â A heat pump has a compressor, which increases the temperature of the heat, and a heat exchanger, which extracts heat from a source.
Heat Pump Advantages
- Offer both heating and cooling
- Are more efficient than boilers or electric heaters
- Are often cheaper to run than traditional HVAC systems
- Can be integrated with a gas furnace, for back-up on extremely cold days
- Can work with or without air ducts
Helpful Heat Pump Information
Here is some information and recommended resources regarding Heat Pumps
Ducted vs. Mini Split Systems
Ducted –Â A central Air Source Heat Pump (ASHP) can use pre-existing ductwork in your home to deliver heating and cooling, making installation easy. In most climate zones, an ASHP can be installed as a drop-in replacement when either a central air conditioner or a furnace needs replacement (or both, as heat pumps offer two services in one).
If you don’t have existing ductwork, you can still install a heat pump(s) to heat and cool your house.
Ductless –Â (Mini Split) heat pumps are mounted directly onto the inside of an exterior wall near an outdoor unit.
Current Incentives & Rebate Programs
Discover a range of exciting incentive and rebate programs designed to support your sustainable energy goals. Explore the list of available programs below to find the perfect fit for your needs.
Home Energy Efficiency Rebates (HEAR)
The HEAR Program offers low-income New Mexicans incentives for ENERGY STAR® certified Heat Pump upgrades. New Mexicans who earn less than 80% AMI or participate in certain means-tested programs qualify. New Mexico has allocated 75% of rebates to single-family homes and 25% of rebates to multi-family homes.
Eligibility Requirements
- Income Eligibility: You need to earn less than 80% of your county’s Area Median Income (AMI) or participate in specific state or federal benefit programs.
- Property Requirement: You must own and live in a single-family home, duplex, triplex, quadplex, manufactured, or townhome.
Click here for more information about the HEAR Program.
How to Apply
With up to $8,000 in savings available through the HEAR program, you can upgrade your home’s heating and cooling easily. Don’t miss out—find out what you’re eligible for and start your journey to a more energy-efficient home today!
Sustainable Building Tax Credit / Energy Conserving Products (ECP)
The Sustainable Building Tax Credit offers financial incentives for incorporating energy-efficient and environmentally friendly features into buildings. Energy Conserving Products (ECP) are key components of this program, requiring items to be ENERGY STAR rated and meet specific insulation standards. By using ECPs, individuals and businesses can reduce energy consumption and qualify for tax benefits.
Eligibility Requirements
- Energy-conserving products must reduce the energy consumption of a residential or commercial building.
- Products must contribute towards the electrification of sustainable buildings.
- Products must be ENERGY STAR rated for the location installed.
- Products must meet the insulation requirements outlined in 3.3.35.14 or 3.4.22.11 NMAC.
maximum tax credit available
$2,000 including product and installation costs (per product installed if the applicant is a low-income taxpayer). $1,000 including product and installation costs per product installed (if the applicant is a non-low-income customer)
How to Apply
- Using EMNRD’s online application portal linked below and uploading the pertinent supporting documents, property owners can apply for tax credits.
- If the project is approved, the applicant will receive an email and a certificate confirming eligibility, which the applicant will use later when filing New Mexico State taxes.
You can submit an electronic application with the Energy, Minerals Natural Resources Department for products installed from January 1, 2021, onward for taxable years before January 1, 2028, as long as the tax credit is still available. The department will review your documentation before issuing a certificate of eligibility for the 2021 Sustainable Building Tax Credit for ECPs. If the annual cap for this tax credit has been reached, you’ll receive a certificate of eligibility for the next year with available funds.
What Incentives are Offered?
| Product Name | Product Description | Maximum Incentive |
| Central (ducted) Air Source Heat Pump System | All-in-one system that sits outside the home, like an A/C unit, and absorbs heat from environment to transport heat into and out of the home. | $8,000 Rebate from HEAR $2,000 Tax Credit from ECP |
| Unducted (mini-split) Air Source Heat Pump System | A heat pump with two components: the outdoor compressor and the indoor unit, linked by a conduit and typically smaller than the ducted heat pump. | $8,000 Rebate from HEAR $2,000 Tax Credit from ECP |
Upcoming Incentive & Rebate Programs
These upcoming programs will offer financial support for various energy-efficient projects and renewable energy installations. Explore the list of what’s coming soon, and be prepared to take advantage of these opportunities as soon as they launch.
Home Energy Rebates
The HER Program will offer low-income New Mexicans rebates on home energy efficiency upgrades. New Mexicans who earn less than 80% AMI or participate in certain means-tested programs qualify. New Mexico has allocated 75% of rebates to single-family homes and 25% of rebates to multi-family homes.
Date Program Goes Live: TBA
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