TRD-41428: Geothermal Electricity Generation Tax Credit Claim Form (2025)
New Mexico · New Mexico TRD · Used for tax years 2025
Form TRD-41428 is New Mexico’s Geothermal Electricity Generation Tax Credit Claim Form. It reports the credit claimed against personal, fiduciary, corporate, or S corporation income tax and any unused credit being carried forward.
Who files this form
Use TRD-41428 if you have been certified by the Energy, Minerals and Natural Resources Department (EMNRD) for the geothermal electricity generation tax credit and want to claim it against New Mexico income tax.
The credit is available to taxpayers who:
- File a New Mexico personal, fiduciary, corporate, or Sub-Chapter S corporate income tax return for a tax year beginning on or after January 1, 2025.
- Hold an interest in a geothermal electricity generation facility that generated electricity in New Mexico on or after January 1, 2025, but before January 1, 2032.
You must apply to EMNRD for certification of eligibility before claiming the credit.
What you'll need
Attach these items to your New Mexico income tax return:
- Completed TRD-41428.
- Completed Schedule CR for your return: PIT-CR, FID-CR, CIT-CR, or S-Corp-CR.
- A copy of your EMNRD certificate of eligibility approving the credit.
- Schedule A of TRD-41428 if you are claiming a remaining carry-forward credit.
- Schedule B of TRD-41428 if a business entity is allocating the credit to members of a partnership or limited liability company.
To complete the form, have your taxpayer identification number, contact information, tax-year beginning and ending dates, and net New Mexico income tax amount ready. For Schedule A, you will also need certificate details and amounts claimed in earlier years. For Schedule B, you will need each member’s name, taxpayer identification number, and ownership percentage.
How to file
- Apply for certification through EMNRD before claiming the credit. Contact its Energy Conservation and Management Division at (505) 476-3310 or visit https://www.emnrd.nm.gov/ecmd/.
- Complete TRD-41428 with your identifying information, tax-year dates, net New Mexico income tax before credits, credit claimed, and excess credit being carried forward. Sign and date the form.
- Enter the credit claimed on the applicable line of your PIT-1, FID-1, CIT-1, or S-Corp return. Attach the required forms and certificate.
Online: Sign in to Taxpayer Access Point (TAP) at https://tap.state.nm.us/Tap and follow the prompts to attach this form to your return.
By mail: Send forms and attachments to:
New Mexico Taxation and Revenue Department
Attn: Business Credit Claim Unit
P.O. Box 5418
Santa Fe, NM 87502-5418
Common mistakes
- Missing attachments: The form warns that failing to submit TRD-41428 and required attachments, including the EMNRD certificate, will result in denial of the credit.
- Using an ineligible tax year: Tax years beginning before January 1, 2025, are not eligible.
- Applying new credit before older credit: Apply unused carry-forward credit first, starting with the oldest approved credit.
- Including exhausted or expired carry-forwards: Do not list credits already claimed in full. Carry-forwards are limited to three consecutive tax years following the year in which the credit is claimed.
- Claiming too much: Credits applied cannot exceed net New Mexico income tax calculated before withholding, payments, or tax credits.
- Incorrect business allocations: Allocate credits in proportion to ownership interests. Total member claims cannot exceed the credit on the EMNRD certificate.
Questions people ask
How is the credit calculated?
The credit equals $0.015 per kilowatt-hour of electricity generated in New Mexico during the taxable year by the geothermal facility in which you hold an interest.
Can I carry unused credit forward?
Yes. Credit exceeding your tax liability may be carried forward for up to three consecutive tax years following the year in which the credit is claimed. Complete Schedule A when claiming a carry-forward amount.
What if I am married and file separately?
If you could have filed a joint return, each spouse may claim only one-half of the credit that would have been claimed on a joint return.
Is there an annual limit on certifications?
Yes. The combined annual certification limit for geothermal electricity generation income tax and corporate income tax credits is $5,000,000. Completed applications are considered in the order received. Applications received after the limit is reached are considered for certification in the following calendar year.
Where can I get help with the claim?
Call (505) 827-0792 or email BusinessCredit.Mgr@tax.nm.gov for help completing the form or claiming the credit.