us-nm/stat
NMSA 1978, § 7-2-18.35 — Home fire recovery income tax credit
A.
A taxpayer who is not a dependent of another individual and who, beginning on
May 15, 2024 and prior to January 1, 2030, incurs qualified home expenditures for a
home in New Mexico to replace a prior home of the taxpayer that was destroyed by a
wildfire in calendar years 2021 through 2023 may claim a tax credit against the
taxpayer's tax liability imposed pursuant to the Income Tax Act in an amount equal to
the qualified home expenditures incurred by the taxpayer not to exceed fifty thousand
dollars ($50,000) per home. The tax credit provided by this section may be referred to
as the "home fire recovery income tax credit".
B.
A taxpayer who seeks to claim the tax credit shall apply for certification of
eligibility from the construction industries division of the regulation and licensing
department on forms and in a manner prescribed by that division. The aggregate
amount of credits that may be certified as eligible in any calendar year is five million
dollars ($5,000,000). An application for certification shall be made no later than twelve
months after the calendar year in which construction of the home is completed.
Completed applications shall be considered in the order received. If a taxpayer submits
an application for the tax credit and the aggregate amount of certifications has been met
for the calendar year, the application shall be placed at the front of a queue for
certification in a subsequent calendar year. Except as otherwise provided in
Subsections G and H of this section, only one tax credit shall be certified per taxpayer.
C.
An application for certification of eligibility shall include:
(1) proof that the taxpayer's prior home was destroyed by wildfire in calendar
years 2021 through 2023, including a sworn statement by the taxpayer;
(2) proof that the taxpayer incurred expenditures for the construction of a
home on the same property of the taxpayer's prior, wildfire-destroyed home, including a
contract with a builder or manufacturer;
(3) a sworn statement by the taxpayer and the builder or manufacturer of the
home that the construction of the home has been completed and stating the date of its
completion; and
(4) any additional information the construction industries division of the
regulation and licensing department may require to determine eligibility for the tax
credit.
D.
If the construction industries division of the regulation and licensing department
determines that the taxpayer meets the requirements of this section, the division shall
issue a dated certificate of eligibility to the taxpayer providing the amount of tax credit
for which the taxpayer is eligible and the taxable year in which the credit may be
claimed. The construction industries division shall provide the department with the
certificates of eligibility issued pursuant to this subsection in a secure electronic format
at regularly agreed-upon intervals.
E.
A taxpayer issued a certificate of eligibility shall claim the tax credit on forms and
in a manner required by the department within twelve months of being issued the
certificate of eligibility.
F.
That portion of the tax credit that exceeds a taxpayer's tax liability in the taxable
year in which the tax credit is claimed shall not be refunded but may be carried forward
for a maximum of three consecutive taxable years.
G.
Married individuals filing separate returns for a taxable year for which they could
have filed a joint return may each claim only one-half of the tax credit that would have
been claimed on a joint return.
H.
A taxpayer may be allocated the right to claim the tax credit in proportion to the
taxpayer's ownership interest if the taxpayer owns an interest in a business entity that is
taxed for federal income tax purposes as a partnership or limited liability company and
that business entity has met all of the requirements to be eligible for the credit. The
total credit claimed by all members of the partnership or limited liability company shall
not exceed the allowable credit pursuant to this section.
I.
The tax credit provided by this section shall be included in the tax expenditure
budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of
the tax credit.
J.
As used in this section:
(1) "home" means a dwelling designed for long-term habitation in which the
taxpayer resides for a majority of the year and is:
(a) constructed permanently on a taxpayer's property with a foundation and
that cannot be moved; or
(b) a manufactured home or modular home that is a single-family dwelling
with a heated area of at least thirty-six by twenty-four feet and at least eight hundred
sixty-four square feet and constructed in a factory to the standards of the United States
department of housing and urban development, the National Manufactured Housing
Construction and Safety Standards Act of 1974 and the Housing and Urban
Development Zone Code 2 or the Uniform Building Code, as amended to the date of the
unit's construction, and installed consistent with the Manufactured Housing Act [Chapter
60, Article 14 NMSA 1978] and with the rules made pursuant thereto relating to
permanent foundations; and
(2) "qualified home expenditures" means gross expenditures for the
construction or manufacture of a home on the same property in New Mexico that a
taxpayer's prior home was destroyed by a wildfire in calendar years 2021 through 2023,
less any compensation related to home construction, manufacture or repair costs
received pursuant to the federal Hermit's Peak/Calf Canyon Fire Assistance Act or from
insurance or other source of compensation.
Source: official text