Last updated: · Sources verified
New Mexico stacks up well: the federal HEAR program is open to households below 80% of county AMI, with up to $8,000 for a heat pump, and the state’s Sustainable Building Tax Credit adds $1,000 per heat pump ($2,000 for low-income taxpayers). Geothermal systems can get a separate 30% credit, up to $9,000.
HEAR and HOMES in New Mexico
HEAR and HOMES are the federal rebate programs that replaced most of the help from the expired heat pump tax credit. Each state runs its own version. How HEAR and HOMES work nationwide.
| Program | Status | Details |
|---|---|---|
| HEAR (electrification rebates) | Open | Open to income-eligible homeowners (below 80% of county AMI or in certain benefit programs); launching in phases, so not all products are available yet (source) |
| HOMES (whole-home efficiency rebates) | Check current availability | Check with New Mexico EMNRD (Energy Conservation and Management). |
Heat pump rebates and incentives in New Mexico
| Program | Amount | Who qualifies | Key requirements |
|---|---|---|---|
| New Mexico HEAR Open (source) | Up to $8,000 for a qualifying heat pump; up to $14,000 per address in total | Below 80% of your county’s AMI (e.g., $63,100 for a household of 4 at the state median) or enrolled in programs like Medicaid, SNAP, SSI, WIC, LIHEAP | Own and live in a single-family home, duplex, triplex, quadplex, manufactured home, or townhome. Apply and be approved before you buy. Launching in phases, so not all products are available yet |
| New Mexico Sustainable Building Tax Credit (Energy Conserving Products) Open (source) | Heat pumps: up to $2,000 per product for low-income taxpayers, up to $1,000 per product for others (including installation) | All New Mexico property owners; higher credit for low-income taxpayers | ENERGY STAR rated products. Apply on EMNRD’s portal for a certificate of eligibility, then claim it on your New Mexico taxes. Available for taxable years before January 1, 2028, subject to the annual cap |
| New Mexico geothermal ground-coupled heat pump tax credit Open (source) | 30% of purchase and installation costs, up to $9,000 | New Mexico taxpayers | A fully operational geothermal ground-coupled heat pump system meeting the program’s efficiency requirements |
Example: what a typical household could get
Example: a homeowner at the state median income installs a ductless heat pump. They earn too much for HEAR (below 80% of AMI), but they can still apply for the Sustainable Building Tax Credit: up to $1,000 for the heat pump, including installation. A low-income household could get HEAR (up to $8,000 for the heat pump) and apply for the higher $2,000 tax credit, though HEAR must approve the project before the purchase.
How to apply, step by step
- Check HEAR eligibility with EMNRD’s checklist: income below 80% of county AMI or enrollment in programs like Medicaid, SNAP, SSI, or LIHEAP.
- Apply and get approved before you buy at clean.energy.nm.gov/get-started.
- For the state tax credit, apply on EMNRD’s online portal with your documents; if approved, you get a certificate to use when filing your New Mexico taxes.
- Geothermal? Ask about the separate ground-coupled heat pump tax credit (30%, up to $9,000).
Choosing a heat pump for New Mexico’s climate
New Mexico’s high desert has hot summers and surprisingly cold winter nights, especially in the north and at higher elevations. Ductless and ducted heat pumps both work well; in colder areas, EMNRD notes a heat pump can be paired with a gas furnace for backup on the coldest days.
New Mexico heat pump rebate FAQ
Is HEAR available in New Mexico?
Yes, for homeowners below 80% of county AMI or in certain benefit programs. It’s launching in phases, so not all products are available yet. The maximum is $14,000 per address.
How much is New Mexico’s heat pump tax credit?
Up to $1,000 per heat pump including installation, or up to $2,000 for low-income taxpayers, through the Sustainable Building Tax Credit for Energy Conserving Products, for taxable years before January 1, 2028.
Is there a New Mexico credit for geothermal heat pumps?
Yes: 30% of purchase and installation costs, up to $9,000, for qualifying geothermal ground-coupled systems.
Rebates in nearby states
- Heat pump rebates in Colorado
- Heat pump rebates in Texas
- All states: heat pump tax credit and rebates guide
Sources
- New Mexico EMNRD: HEAR
- New Mexico EMNRD: Home Efficiency Rebates (HER) RFP
- New Mexico EMNRD: Heat pump incentives
Programs change often. We verify every figure against the official source listed above; if something looks out of date, let us know.