TRD-41427: TRD-41427 Geothermal Ground-Coupled Heat Pump Corporate Income Tax Credit Claim Form (2024) (2024)
New Mexico · New Mexico TRD · Used for tax years 2024
Form TRD-41427 is used to claim New Mexico’s geothermal ground-coupled heat pump tax credit against corporate or subchapter S corporate income tax. It reports the credit applied against tax due and any excess credit to be refunded, with Schedule A used for business entities alloc
Who files this form
Use the 2024 Form TRD-41427 if EMNRD has certified your geothermal ground-coupled heat pump credit and you want to claim it against New Mexico corporate income tax or subchapter S corporate income tax.
To qualify, you must have purchased and installed the heat pump after May 15, 2024, but before December 31, 2034, in a New Mexico residence, business or agricultural enterprise owned by you or by a partnership or other business association of which you are a member. The form excludes tax years beginning before January 1, 2024, or after December 31, 2034.
For a credit against personal or fiduciary income tax, use Form TRD-41426 instead.
When it's due
The tax year 2024 form does not state a filing deadline. It lists these eligibility dates:
- Tax years: The tax year must begin on or after January 1, 2024, and no later than December 31, 2034.
- Purchase and installation: The heat pump must be purchased and installed after May 15, 2024, but before December 31, 2034.
What you'll need
Attach these items to your applicable tax return:
- Completed Form TRD-41427.
- A copy of the EMNRD letter certifying the heat pump and approving your credit.
- Completed Schedule CR for the applicable return.
You will also need your taxpayer identification number, contact information, tax-year beginning and ending dates, and net New Mexico income tax before credits.
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.
- Enter net New Mexico income tax before credits on line 2.
- On line 3, enter the credit applied against that tax. Do not enter more than the tax due.
- On line 4, enter the credit exceeding the tax due that will be refunded.
- Complete Schedule A if the business entity is allocating the credit to its members. Prepare a separate Schedule A for each approved credit that needs allocation.
- 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 instructions.
For help completing the form or claiming the credit, email BusinessCredit.Mgr@tax.nm.gov or call (505) 827-0792.
Common mistakes
- Leaving out required attachments: The form warns that failure to submit the claim form and required attachments will result in denial of the credit.
- Entering too much on line 3: Do not enter more than the net New Mexico income 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: Members’ combined claims cannot exceed the credit on the EMNRD certificate. Allocate the credit in proportion to ownership interests.
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 for the year it is claimed. The remaining amount is refunded to you.
How do I apply for credit approval?
Contact EMNRD’s Energy Conservation and Management Division. Call (505) 476-3310 to leave a message, email EMNRD.taxcredits@emnrd.nm.gov, or visit https://www.emnrd.nm.gov/ecmd/tax-incentives/.
Is there an annual limit on approved credits?
EMNRD may allow a maximum annual total of $4,000,000 in these corporate income tax credits. Applications are considered in the order EMNRD receives them.