New Mexico Heat Pump Rebates
New Mexico heat pump rebates go up to $8,000 for income-eligible homeowners under Home Electrification and Appliance Rebates, the state program. If Public Service Company of New Mexico is your utility, you can also claim $550 once you complete a Home Energy Checkup.
Find the New Mexico rebates for your ZIP code
If JavaScript is off, look up your state in the table of programs.
Who sends your electric bill?
What are you putting in?
- Largest standard rebate available
- $550 PNM Rebates (once you finish a Home Energy Checkup), for customers of Public Service Co of NM
- HEAR appliance rebates
- Partly open Pays as much as $8,000 toward a heat pump when income qualifies. Run by ECAM. Official page
- HOMES whole-home rebates
- Approved but not open yet Paid on the energy saved by a whole-home upgrade. Official page
- The 25C federal tax credit
- Ended No credit for heat pumps installed after 31 December 2025
New Mexico heat pump rebates
Every row lists the utility or agency, the heat pump type that qualifies, and the steps your household needs to take.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Status | Apply |
|---|---|---|---|---|---|---|
| PNM Rebates (after a Home Energy Checkup) | Served by Public Service Co of NM | $550 Rebate | None | $300 Rebate | Open | Official page |
Claiming PNM and New Mexico Heat Pump Rebates
Public Service Company of New Mexico will pay $550 for a standard air source heat pump, split or packaged. The PNM Rebates page also offers $300 for heat pump water heaters that carry the ENERGY STAR certification. Complete these three steps in the right order, or you may lose your payment:
- Schedule and finish a PNM Home Energy Checkup before buying or installing any equipment.
- If installation is needed, have an Authorized Contractor put in your new heat pump.
- File the rebate form online, by email, or through the mail, include your receipts, then allow six to eight weeks.
The PNM Residential Midstream Program is another thing to raise with your installer before a contract is signed. At participating wholesalers, your contractor receives an upfront discount for a heat pump or a heat pump water heater, without any form.
New Mexico Home Energy Rebates for Lower-Income Homes
On September 3, 2024, the state launched its Home Electrification and Appliance Rebates program for homeowners who meet the income rules. For eligible households, a heat pump rebate runs up to $8,000, and a heat pump water heater rebate up to $1,750. Total upgrades per address are capped at $14,000.
To qualify, your household must earn under 80% of the median income for your county area, the local midpoint income. Enrollment in any of these assistance programs also qualifies you: Medicaid, SNAP, SSI, LIHEAP, or WAP. At present, eligible homes are a duplex to quadplex, single-family home, townhome, or manufactured home that you own and live in.
Before you hire an Authorized Program Contractor, apply online through the state application portal and include proof of identity, address, and income. A separate program, Home Efficiency Rebates, is approved to serve households under 80% of the area median income, though it is not yet open.
Heating, Weatherization, and State Tax Credits in New Mexico
Roughly six out of ten New Mexico homes use natural gas for heat, and about five percent burn wood. Close to one-fourth heat with electricity, and per the Energy Information Administration, more than four-fifths use air conditioning. In one system, a heat pump covers both heating and cooling.
Even though the federal 25C credit ended for installs made after 31 December 2025, New Mexico keeps offering state tax credits:
- Low-income taxpayers can get up to $2,000, and others $1,000, from the 2021 Sustainable Building Tax Credit before January 1, 2028.
- For underground systems and installation, the Geothermal Ground-Coupled Heat Pump Tax Credit covers 30% of costs, up to $9,000.
- Free energy-saving retrofits are available from Housing New Mexico through its New Mexico Weatherization Assistance Program for income-eligible homeowners and also renters.
Common Questions About New Mexico Heat Pump Rebates
For 2026, what is the status of the state heat pump rebate in New Mexico?
Home Electrification and Appliance Rebates, the state site, shows heat pumps as open and taking applications on its heat pump page. Yet the main overview chart on that same state website still lists heat pumps as an offer not yet opened. By the end of 2026, renters and multifamily buildings should gain access and receive 25% of program funds.
Does New Mexico still have a 30% tax credit for heat pumps?
Public Law 119-21, signed July 4, 2025, ended the federal credit; IRS Fact Sheet FS-2025-05 explains it. The only 30% tax credit left in New Mexico covers geothermal ground-coupled heat pumps and is worth up to $9,000. For standard air source systems, the flat state credit per installed product applies instead, covering equipment and installation.
Can renters in New Mexico get home energy rebates or weatherization?
Renters may apply now for free retrofits under the New Mexico Weatherization Assistance Program, which the New Mexico Mortgage Finance Authority runs. No exact income percentage appears on the program page, so contact the Mortgage Finance Authority to check whether your household qualifies. Each of the two state Home Energy Rebates programs also sets aside 25% of its budget for multifamily buildings.
Are heat pump rebates in New Mexico ending?
The federal tax credit expired December 31, 2025, but New Mexico's state and utility incentives are still active. 2021 Sustainable Building Tax Credit applications are accepted for heat pumps installed in taxable years before January 1, 2028. The state Home Efficiency Rebates program, meanwhile, has not opened yet, but you can sign up online for updates.
Get New Mexico installer quotes with the rebates taken off
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.