Section 12. System Applications And Lists Of Eligible Components

A. Geothermal ground-coupled heat pump systems that the department may certify shall meet the following requirements: (1) be made of new equipment, components and materials; (2) have a written minimum two year warranty provided by the contractor on parts, equipment and labor with the following exceptions: (a) the warranty provided by the contractor on each specific piece of equipment shall not exceed the duration and conditions of the warranty provided by the manufacturer of the equipment against defects in materials and workmanship; and (b) the owner of the geothermal ground-coupled heat pump system may bear the actual cost of shipping the product for the repair and replacement; (3) be a complete system that collects and distributes geothermal energy to the residence, business or agricultural enterprise in New Mexico that it serves; (4) have a minimum coefficient of performance of three and four-tenths or an efficiency ratio of 16 or greater; and (5) be a minimum one-ton system size. B. Geothermal ground-coupled heat pump systems or their portions that the department shall not certify are as follows: (1) a system or portion of a system that would be present if the geothermal ground-coupled heat pump system was not installed; (2) a system that is not connected to a structure or foundation and does not serve a permanent end use energy load or is not permanently located in New Mexico; (3) a system not serving an end use energy load; or (4) a system or portion of a system that replaces a system or portion of a system the department has certified in a previous application for a tax credit. C pump system was not installed; (2) a system that is not connected to a structure or foundation and does not serve a permanent end use energy load or is not permanently located in New Mexico; (3) a system not serving an end use energy load; or (4) a system or portion of a system that replaces a system or portion of a system the department has certified in a previous application for a tax credit. C. System components and installation processes that the department may include in the cost calculation and certify include: (1) the system applications of geothermal space heating, geothermal air heating, geothermal process heating, geothermal space cooling or combinations of geothermal system applications; (2) collectors; (3) pumps; (4) fans; 3.3.32 NMAC 6 (5) storage tanks; (6) buffer tanks; (7) expansion tanks; (8) expansion valves; (9) valves; (10) “txv” valves; (11) three-way valves; (12) refrigerant compressors; (13) chill water tanks; (14) refrigerant reversing valves; (15) controllers; (16) heat exchangers; (17) compressors; (18) compressor gas; (19) flow center circulators; (20) tubing; (21) tubing u-bend connections; (22) tubing connections and fittings; (23) manifolds; (24) supply headers; (25) expansion metering devices; (26) desuperheaters; (27) hot water tanks; (28) heat exchange refrigerant; (29) reverse return headers; (30) thermostats; (31) evaporators; (32) borehole grout; (33) borehole backfill sand or other medium; (34) turnarounds; (35) air handlers; (36) above-ground fluid coolers; (37) thermal conductivity testing; and (38) all materials and costs associated with vertical well drilling and horizontal trenching including well casing and tubing. [3.3.32.12 NMAC - N, 09/15/2010] 3.3.32.13 CALCULATING THE GEOTHERMAL GROUND-COUPLED HEAT PUMP SYSTEM COST: A le grout; (33) borehole backfill sand or other medium; (34) turnarounds; (35) air handlers; (36) above-ground fluid coolers; (37) thermal conductivity testing; and (38) all materials and costs associated with vertical well drilling and horizontal trenching including well casing and tubing. [3.3.32.12 NMAC - N, 09/15/2010] 3.3.32.13 CALCULATING THE GEOTHERMAL GROUND-COUPLED HEAT PUMP SYSTEM COST: A. The cost of a geothermal ground-coupled heat pump system the department certifies shall be the cost of acquiring the system but shall not include the following: (1) expenses, including but not limited to: (a) unpaid labor or the applicant’s labor; (b) unpaid equipment or materials; (c) land costs or property taxes; (d) costs of structural, surface protection and other functions in building elements that would be included in building construction if a geothermal ground-coupled heat pump system were not installed; (e) mortgage, lease or rental costs of the residence, business or agricultural enterprise; (f) legal and court costs; (g) research fees or patent search fees; (h) fees for use permits or variances; (i) membership fees; (j) financing costs or loan interest; (k) marketing, promotional or advertising costs; (l) repair, operating or maintenance costs; (m) extended warranty costs; 3.3.32 NMAC 7 (n) system visual barrier costs; (o) adjacent structure modification costs; (p) vegetation maintenance costs; and (2) income, including: (a) payments the accredited installer or other parties provide that reduce the system cost, including rebates, discounts and refunds with the exception of federal, state and local government and utility company incentives; (b) services, benefits or material goods the accredited installer or other parties provide by the same or separate contract, whether written or verbal; and (c) other financial incentives provided for geothermal ground-coupled heat pump system installation, if applicable. B uding rebates, discounts and refunds with the exception of federal, state and local government and utility company incentives; (b) services, benefits or material goods the accredited installer or other parties provide by the same or separate contract, whether written or verbal; and (c) other financial incentives provided for geothermal ground-coupled heat pump system installation, if applicable. B. The division shall make the final determination of the net cost that the department certifies is eligible for a tax credit.