New Mexico: heat pump & home energy rebates
New Mexico is accepting applications for federally funded Home Energy Rebates.
What the state says now: HEAR is open through CleanEnergy.nm.gov to homeowners and renters below 80% of Area Median Income or enrolled in certain benefit programs; up to $14,000 per household, installed by a program-certified contractor. EMNRD’s FAQ was last updated February 26, 2026, before DOE Notice 26-2.
Federal money, state doors
The federal 25C and 25D tax credits ended December 31, 2025. Federal support now flows only through two rebate programs each state runs itself: HEEHR (High-Efficiency Electric Home Rebates, formerly called HEAR — up to $14,000 per income-qualified household, including up to $8,000 for a heat pump) and HOMES (whole-home rebates based on modeled energy savings, up to $8,000, at any income). Since May 29, 2026, HEEHR pays only for upgrades from existing electric equipment, not for replacing a gas, oil or propane system. Amounts, eligibility and timing in New Mexico are set by the state’s energy office. For the full federal picture, read heat pump tax credit 2026: what replaced it.
Programs in New Mexico
- HEAR — up to $14,000 per household: heat pump up to $8,000, heat pump water heater $1,750, electrical panel $4,000, wiring $2,500, insulation and air sealing $1,600, electric stove or heat pump dryer $840
- Eligibility — below 80% of Area Median Income, or enrolled in certain federal benefit programs; apply at CleanEnergy.nm.gov and receive a coupon before buying
- Installation — must be done by a program-certified installer; self-installed projects do not qualify
Official source: New Mexico’s program page (www.emnrd.nm.gov)
While you wait — or on top of rebates
- Utility rebates often stack with state programs. Check your electric utility's efficiency page.
- Weatherization (air sealing, insulation) usually pays back faster than equipment — and HOMES rewards measured savings. Federal heat pump rebates now require it first: see what insulation pays in 2026.
- Get a Manual J load calculation before accepting any heat pump quote; oversizing wastes both the rebate and the savings.