1. A. The cost of a geothermal ground-coupled heat pump system the department certifies shall be the cost of acquiring the system but shall not include the following:

   (1) expenses, including but not limited to:

   (a) unpaid labor or the applicant’s labor;

   (b) unpaid equipment or materials;

   (c) land costs or property taxes;

   (d) costs of structural, surface protection and other functions in building elements that would be included in building construction if a geothermal ground-coupled heat pump system were not installed;

   (e) mortgage, lease or rental costs of the residence, business or agricultural enterprise;

   (f) legal and court costs;

   (g) research fees or patent search fees;

   (h) fees for use permits or variances;

   (i) membership fees;

   (j) financing costs or loan interest;

   (k) marketing, promotional or advertising costs;

   (l) repair, operating or maintenance costs;

   (m) extended warranty costs;

   (n) system visual barrier costs;

   (o) adjacent structure modification costs;

   (p) vegetation maintenance costs; and

   (2) income, including:

   (a) payments the installer or other parties provide that reduce the system cost, including rebates, discounts and refunds with the exception of federal, state and local government and utility company incentives;

   (b) services, benefits or material goods the installer or other parties provide by the same or separate contract, whether written or verbal; and

   (c) other financial incentives provided for geothermal ground-coupled heat pump system installation, if applicable.

2. B. The division shall make the final determination of the net cost that the department certifies is eligible for a tax credit.

[3.4.19.13 NMAC - N, 09/15/2010]