1. A. Only a taxpayer who is the owner of a geothermal ground-coupled heat pump system that is purchased and is installed in a residence, business or agricultural enterprise in New Mexico on or after January 1, 2010, but before December 31, 2020 may receive a certificate of eligibility for a tax credit.

2. B. Only one application package shall be filed per geothermal ground-coupled heat pump system. If more than one taxpayer owns an interest in the property where the geothermal ground-coupled heat pump system is installed as a member of a partnership or other business association, a taxpayer may only claim a tax credit in proportion to that taxpayer’s interest in the partnership or association. The application package shall specify the interest each taxpayer has in the property. In the event that there is more than one taxpayer that owns an interest in the property where the geothermal ground-coupled heat pump system is installed:

   (1) each such taxpayer applying for a tax credit must be identified as an applicant on the application package;

   (2) each such taxpayer applying for a tax credit must provide the required taxpayer information as required by 3.4.19.9 NMAC and the application form;

   (3) each such taxpayer applying for a tax credit must sign the application; and

   (4) the department shall issue one certificate of eligibility per taxpayer that reflects the amount of the tax credit to which the taxpayer is entitled in accordance with the taxpayer’s interest in the property, as set forth in the application.

3. C. 3.4.19 NMAC applies to geothermal ground-coupled heat pump systems for corporate income tax only; the rules for personal income tax geothermal ground-coupled heat pump system tax credit are at 3.3.32 NMAC.
4. D. The tax credit certificate may be issued for up to 30 percent of the purchase and installation costs of the geothermal ground-coupled heat pump system but may not exceed $9,000.

5. E. The annual cap is $2,000,000. When the $2,000,000 annual cap is reached, based on all certificates of eligibility the department has issued, the department shall:

   (1) if part of the eligible tax credit is within the annual cap and part is over the annual cap, issue a certificate of eligibility for the amount under the annual cap for the applicable tax year and issue a certificate of eligibility for the balance for the next subsequent tax year in which such tax credits are available; except

   (2) if no tax credit funds are available, issue a certificate of eligibility for the next subsequent tax year in which such credits are available, except for the last taxable year when the tax credit is in effect.

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