Bill > HB472

This bill creates a new tax credit program for businesses that rehabilitate abandoned buildings in New Mexico, offering a corporate income tax credit of 25% for rehabilitation expenses, up to $700,000 per taxpayer. To qualify, businesses must apply for pre-certification from the economic development department before starting work, providing details about their planned rehabilitation project. After completing the project, they must submit an application with a certified public accountant's verification of expenses within one year of placing the building in service. The program is limited to $20 million in total credits per calendar year, with applications considered in the order received. The tax credit can be sold or transferred to other taxpayers and can be carried forward for up to five consecutive tax years if it exceeds the taxpayer's current tax liability. An "abandoned building" is defined as a structure unoccupied for income-producing purposes for at least five years, and eligible rehabilitation expenses include structural repairs, environmental remediation, and site improvements, but exclude building acquisition and personal property costs. The tax credit program will be available from January 1, 2025, through December 31, 2036, with a formal repeal scheduled for January 1, 2037.

Business and Industry

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=472&year=25