Bill > HB77

This bill establishes the "affordable housing revitalization corporate income tax credit" for businesses in New Mexico that undertake revitalization projects on vacant or abandoned properties to create residential housing. To qualify, a taxpayer must first get pre-certification from the New Mexico Mortgage Finance Authority, detailing their project plans and estimated costs. The credit amount is based on the length of vacancy of the property: 30% of rehabilitation expenses for properties vacant for two to five years, capped at $2 million per taxpayer, or 40% for properties vacant for five years or longer, capped at $4 million per taxpayer. Crucially, at least 15% of the housing units developed must be designated as "affordable housing," meaning they are for individuals or families earning at or below 85% of the area median income. After project completion, taxpayers must apply for final certification, with an annual statewide cap of $100 million in credits, and a sub-cap of $50 million for projects in non-rural areas. Eligible credits can be sold or transferred to other taxpayers and any credit amount exceeding a taxpayer's liability can be carried forward for up to five years. This tax credit program is set to begin for taxable years starting January 1, 2026, and will be repealed on January 1, 2038.

Business and Industry

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=77&year=26