TRD-41426: TRD-41426 Geothermal Ground-Coupled Heat Pump Income Tax Credit Claim Form (2024) (2024)
New Mexico · New Mexico TRD · Used for tax years 2024
Form TRD-41426 claims New Mexico’s geothermal ground-coupled heat pump tax credit against personal or fiduciary income tax. It reports the credit applied against tax due and the excess credit to be refunded, with Schedule A used to allocate a business entity’s credit among its me
Who files this form
Use Form TRD-41426 (2024) if you have been certified by the New Mexico Energy, Minerals and Natural Resources Department (EMNRD) for this credit and want to claim it against New Mexico personal or fiduciary income tax.
The form covers taxpayers who purchased and installed a geothermal ground-coupled heat pump in a New Mexico residence, business, or agricultural enterprise owned by them, or by a partnership or other business association of which they are a member. The tax-year and installation-date limits are listed below.
To claim the credit against corporate income tax or subchapter S corporate income tax, use Form TRD-41427 instead.
When it's due
The 2024 version of the form gives these eligibility dates, but does not print a tax-return filing deadline:
- Eligible tax years: The tax year must begin on or after January 1, 2024, and no later than December 31, 2034.
- Purchase and installation window: The heat pump must have been purchased and installed after May 15, 2024, but before December 31, 2034.
These are eligibility limits stated on the 2024 form, not return due dates.
What you'll need
Attach these items to your New Mexico personal or fiduciary income tax return:
- A completed Form TRD-41426.
- A copy of the EMNRD letter certifying the heat pump and approving you for the credit.
- A completed Schedule CR for the applicable tax return.
To complete TRD-41426, have your taxpayer identification number, contact information, tax-year beginning and ending dates, and net New Mexico income tax before credits available.
If a business entity is allocating the credit to partnership or limited liability company members, complete Schedule A. You will need the EMNRD certificate number, approved credit amount, and each member’s name, identification number, and ownership percentage.
How to file
- Enter your taxpayer and contact information and the beginning and ending dates of the tax year.
- On line 2, enter your net New Mexico income tax before any credits.
- On line 3, enter the credit applied against that tax. Do not enter more than the tax due.
- On line 4, enter the credit amount above the tax due that will be refunded.
- Complete Schedule A if a business entity is allocating the credit to its partnership or limited liability company members. Use a separate Schedule A for each approved credit being allocated.
- Sign and date the claim, then attach it, the EMNRD approval letter, and the applicable Schedule CR to your return.
The form does not provide a mailing address or e-file directions for submitting the claim.
Common mistakes
- Leaving out required attachments: The form warns that failure to submit TRD-41426 and the other required attachments with your personal or fiduciary return will result in denial of the credit.
- Entering too much on line 3: The amount applied against tax cannot exceed the tax due.
- Using an ineligible tax year: Tax years beginning before January 1, 2024, or after December 31, 2034, are not eligible.
- Allocating too much credit: A business entity must allocate the credit in proportion to ownership interests. The total claimed by all members cannot exceed the amount on the EMNRD certificate.
Questions people ask
How much is the credit?
The credit is available for up to 30% of purchase costs and cannot exceed $9,000.
What happens if the credit is more than my tax liability?
The credit is applied to your tax liability in the tax year it is claimed. The remaining amount is refunded to you.
How do I apply for EMNRD approval?
Contact EMNRD’s Energy Conservation and Management Division at (505) 476-3310 to leave a message, email EMNRD.taxcredits@emnrd.nm.gov, or visit https://www.emnrd.nm.gov/ecmd/tax-incentives/. Applications are considered in the order received. EMNRD may allow up to $4,000,000 in these income tax credits annually.
Where can I get help completing the claim form?
Email BusinessCredit.Mgr@tax.nm.gov or call (505) 827-0792 for assistance completing the form or claiming the credit.