Here is an example of how three Edgewood, NM families with different incomes can use incentives to purchase heat pumps.
An Illustrative Example: Three Edgewood, NM Families Install a Heat Pump
Notes on Three Families: Cost of heat pump based on based on SWEEP study. Inflation Reduction Act (IRA) Heat Pump Rebate will be available in early 2024. AARP calculator says Low Income couple has a tax liability of $2,484. 30% of the cost of the Heat Pump after subtracting rebates ($5,000) is $1,500. The taxes for the middle-income family are estimated using this Tax liabilitycalculator assuming standard deduction, 2 children under 17. Taxes owed are $7,900. Central New Mexico Electric Coop Heat Pump Rebate: Tier 1- Efficient Air Source Heat Pump Required heating factor HSPF2 >= 7.8 and cooling factor SEER2 >=15.2, > 2 tons = $1,800 (not to exceed 50% equipment cost). Rebate for cold climate HP > 2 tons = $2,400. New Mexico State Tax Incentive information here. IRA tax credits are stackable with other tax credits.