Bill > HB511

This bill creates two new tax credits for businesses that renovate retail centers in New Mexico: a retail center renovation income tax credit and a retail center renovation corporate income tax credit. Under these credits, taxpayers can claim a tax credit equal to 10% of qualifying renovation costs, up to $1.5 million per retail center renovation project, for renovations completed between the bill's effective date and January 1, 2035. To qualify, a renovation project must involve at least 50% of a retail center's total leasable square footage and can include improvements like structural upgrades, accessibility enhancements, energy efficiency improvements, and adaptive reuse (such as converting a retail center into mixed-use or residential spaces). Taxpayers must apply to the economic development department within one year of project completion and can carry forward any unused credit for up to five years. The total aggregate amount of credits available each calendar year is $15 million, and applications will be processed in the order received. The bill prohibits taxpayers from claiming multiple credits for the same renovation project and requires the credits to be included in the annual tax expenditure budget. The provisions of the bill will apply to taxable years beginning on or after January 1, 2025, and the tax credit provisions will automatically expire on January 1, 2036.

Business and Industry

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=511&year=25