us-nm/stat
NMSA 1978, § 7-2A-28 — 2015 sustainable building corporate income tax credit
A.
The tax credit provided by this section may be referred to as the "2015
sustainable building corporate income tax credit". The 2015 sustainable building
corporate income tax credit shall be available for the construction in New Mexico of a
sustainable building, the renovation of an existing building in New Mexico into a
sustainable building or the permanent installation of manufactured housing, regardless
of where the housing is manufactured, that is a sustainable building; provided that the
construction, renovation or installation project is completed prior to April 1, 2023. The
tax credit provided in this section may not be claimed with respect to the same
sustainable building for which the 2015 sustainable building income tax credit, the 2021
sustainable building income tax credit or the 2021 sustainable building corporate
income tax credit has been claimed.
B.
The purpose of the 2015 sustainable building corporate income tax credit is to
encourage the construction of sustainable buildings and the renovation of existing
buildings into sustainable buildings.
C.
A taxpayer that files a corporate income tax return may claim a 2015 sustainable
building corporate income tax credit if the requirements of this section are met.
D.
For taxable years ending on or before December 31, 2024, the 2015 sustainable
building corporate income tax credit may be claimed with respect to a sustainable
commercial building. The credit shall be calculated based on the certification level the
building has achieved in the LEED green building rating system and the amount of
qualified occupied square footage in the building, as indicated on the following chart:
LEED Rating Level Qualified Tax Credit per
Occupied Square Foot
Square Footage
LEED-NC Silver First 10,000 $3.50
Next 40,000 $1.75
Over 50,000
up to 500,000 $0.70
LEED-NC Gold First 10,000 $4.75
Next 40,000 $2.00
Over 50,000
up to 500,000 $1.00
LEED-NC Platinum First 10,000 $6.25
Next 40,000 $3.25
Over 50,000
up to 500,000 $2.00
LEED-EB or CS Silver First 10,000 $2.50
Next 40,000 $1.25
Over 50,000
up to 500,000 $0.50
LEED-EB or CS Gold First 10,000 $3.35
Next 40,000 $1.40
Over 50,000
up to 500,000 $0.70
LEED-EB or CS
Platinum First 10,000 $4.40
Next 40,000 $2.30
Over 50,000
up to 500,000 $1.40
LEED-CI Silver First 10,000 $1.40
Next 40,000 $0.70
Over 50,000
up to 500,000 $0.30
LEED-CI Gold First 10,000 $1.90
Next 40,000 $0.80
Over 50,000
up to 500,000 $0.40
LEED-CI Platinum First 10,000 $2.50
Next 40,000 $1.30
Over 50,000
up to 500,000 $0.80.
E.
For taxable years ending on or before December 31, 2024, the 2015 sustainable
building corporate income tax credit may be claimed with respect to a sustainable
residential building. The credit shall be calculated based on the amount of qualified
occupied square footage, as indicated on the following chart:
Rating System/Level Qualified Tax Credit
Occupied per Square
Square Footage Foot
LEED-H Silver or Build Up to 2,000 $3.00
Green NM Silver
LEED-H Gold or Build Up to 2,000 $4.50
Green NM Gold
LEED-H Platinum or Build Up to 2,000 $6.50
Green NM Emerald
Manufactured Housing Up to 2,000 $3.00.
F.
A person that is a building owner may apply for a certificate of eligibility for the
2015 sustainable building corporate income tax credit from the energy, minerals and
natural resources department after the construction, installation or renovation of the
sustainable building is complete. Completed applications shall be considered in the
order received. If the energy, minerals and natural resources department determines
that the building owner meets the requirements of this subsection and that the building
with respect to which the tax credit application is made meets the requirements of this
section as a sustainable residential building or a sustainable commercial building, the
energy, minerals and natural resources department may issue a dated certificate of
eligibility to the building owner providing the amount of credit for which the building
owner is eligible and the taxable year in which the credit may be claimed, subject to the
limitations in Subsection G of this section. The certificate shall include the rating system
certification level awarded to the building, the amount of qualified occupied square
footage in the building and a calculation of the maximum amount of 2015 sustainable
building corporate income tax credit for which the building owner would be eligible. The
energy, minerals and natural resources department may issue rules governing the
procedure for administering the provisions of this subsection.
G.
Except as provided in Subsection H of this section, the energy, minerals and
natural resources department may issue a certificate of eligibility only if the aggregate
amount of 2015 sustainable building corporate income tax credits represented by
certificates of eligibility issued by the energy, minerals and natural resources
department pursuant to this section and Section 7-2-18.29 NMSA 1978 shall not exceed
in any calendar year an aggregate amount of:
(1) one million two hundred fifty thousand dollars ($1,250,000) with respect to
sustainable commercial buildings;
(2) three million three hundred seventy-five thousand dollars ($3,375,000)
with respect to sustainable residential buildings that are not manufactured housing; and
(3) three hundred seventy-five thousand dollars ($375,000) with respect to
sustainable residential buildings that are manufactured housing.
H.
For any taxable year that the energy, minerals and natural resources department
determines that applications for sustainable building corporate income tax credits for
any type of sustainable building pursuant to Paragraph (1), (2) or (3) of Subsection G of
this section are less than the aggregate limit for that type of sustainable building for that
taxable year, the energy, minerals and natural resources department shall allow the
difference between the aggregate limit and the applications to be added to the
aggregate limit of another type of sustainable building for which applications exceeded
the aggregate limit for that taxable year. Any excess not used in a taxable year shall
not be carried forward to subsequent taxable years. The energy, minerals and natural
resources department shall provide the department appropriate information for all
certificates of eligibility in a secure manner on regular intervals agreed upon by both
departments.
I.
Installation of a solar thermal system or a photovoltaic system eligible for the
solar market development tax credit pursuant to Section 7-2-18.14 [repealed] or 7-2-
18.31 NMSA 1978 may not be used as a component of qualification for the rating
system certification level used in determining eligibility for the 2015 sustainable building
corporate income tax credit, unless a solar market development tax credit pursuant to
Section 7-2-18.14 [repealed] or 7-2-18.31 NMSA 1978 has not been claimed with
respect to that system and the building owner and the taxpayer claiming the 2015
sustainable building corporate income tax credit certify that such a tax credit will not be
claimed with respect to that system.
J.
To claim the 2015 sustainable building corporate income tax credit, the building
owner shall provide to the department a certificate of eligibility issued by the energy,
minerals and natural resources department pursuant to the requirements of Subsection
F of this section and any other information the department may require to determine the
amount of the tax credit for which the building owner is eligible.
K.
Any portion of a 2015 sustainable building corporate income tax credit that
exceeds the taxpayer's corporate income tax liability for the taxable year in which the
credit is claimed may be carried forward for up to seven consecutive taxable years.
L.
A taxpayer that otherwise qualifies and claims a 2015 sustainable building
corporate income tax credit with respect to a sustainable building owned by a
partnership or other business association of which the taxpayer is a member may claim
a credit only in proportion to that taxpayer's interest in the partnership or association.
The total credit claimed in the aggregate by all members of the partnership or
association with respect to the sustainable building shall not exceed the amount of the
credit that could have been claimed by a sole owner of the property.
M.
The credit provided by this section shall be included in the tax expenditure
budget pursuant to Section 7-1-84 NMSA 1978 with an analysis of the effectiveness and
cost of the tax credit and whether the tax credit is performing the purpose for which it
was created.
N.
For the purposes of this section:
(1) "build green New Mexico rating system" means the certification standards
adopted by build green New Mexico in November 2014, which include water
conservation standards;
(2) "LEED-CI" means the LEED rating system for commercial interiors;
(3) "LEED-CS" means the LEED rating system for the core and shell of
buildings;
(4) "LEED-EB" means the LEED rating system for existing buildings;
(5) "LEED gold" means the rating in compliance with, or exceeding, the
second-highest rating awarded by the LEED certification process;
(6) "LEED" means the most current leadership in energy and environmental
design green building rating system guidelines developed and adopted by the United
States green building council;
(7) "LEED-H" means the LEED rating system for homes;
(8) "LEED-NC" means the LEED rating system for new buildings and major
renovations;
(9) "LEED platinum" means the rating in compliance with, or exceeding, the
highest rating awarded by the LEED certification process;
(10) "LEED silver" means the rating in compliance with, or exceeding, the third-
highest rating awarded by the LEED certification process;
(11) "manufactured housing" means a multisectioned home that is:
(a) a manufactured home or modular home;
(b) a single-family dwelling with a heated area of at least thirty-six feet by
twenty-four feet and a total area of at least eight hundred sixty-four square feet;
(c) 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 New Mexico construction codes up to the date of the unit's construction; and
(d) installed consistent with the Manufactured Housing Act [Chapter 60,
Article 14 NMSA 1978] and rules adopted pursuant to that act relating to permanent
foundations;
(12) "qualified occupied square footage" means the occupied spaces of the
building as determined by:
(a) the United States green building council for those buildings obtaining
LEED certification;
(b) the administrators of the build green New Mexico rating system for those
homes obtaining build green New Mexico certification; and
(c) the United States environmental protection agency for ENERGY STAR-
certified manufactured homes;
(13) "person" does not include state, local government, public school district or
tribal agencies;
(14) "sustainable building" means either a sustainable commercial building or a
sustainable residential building;
(15) "sustainable commercial building" means a multifamily dwelling unit, as
registered and certified under the LEED-H or build green New Mexico rating system,
that is certified by the United States green building council as LEED-H silver or higher or
by build green New Mexico as silver or higher and has achieved a home energy rating
system index of sixty or lower as developed by the residential energy services network
or a building that has been registered and certified under the LEED-NC, LEED-EB,
LEED-CS or LEED-CI rating system and that:
(a) is certified by the United States green building council at LEED silver or
higher;
(b) achieves any prerequisite for and at least one point related to
commissioning under LEED "energy and atmosphere", if included in the applicable
rating system; and
(c) has reduced energy consumption beginning January 1, 2012, by sixty
percent based on the national average for that building type as published by the United
States department of energy as substantiated by the United States environmental
protection agency target finder energy performance results form, dated no sooner than
the schematic design phase of development;
(16) "sustainable residential building" means:
(a) a building used as a single-family residence as registered and certified
under the build green New Mexico or LEED-H rating systems that: 1) is certified by the
United States green building council as LEED-H silver or higher or by build green New
Mexico as silver or higher; 2) has achieved a home energy rating system index of sixty
or lower as developed by the residential energy services network; 3) has indoor
plumbing fixtures and water-using appliances that, on average, have flow rates equal to
or lower than the flow rates required for certification by WaterSense; 4) if landscape
area is available at the front of the property, has at least one water line outside the
building below the frost line that may be connected to a drip irrigation system; and 5) if
landscape area is available at the rear of the property, has at least one water line
outside the building below the frost line that may be connected to a drip irrigation
system; or
(b) manufactured housing that is ENERGY STAR-qualified by the United
States environmental protection agency;
(17) "tribal" means of, belonging to or created by a federally recognized Indian
nation, tribe or pueblo; and
(18) "WaterSense" means a program created by the federal environmental
protection agency that certifies water-using products that meet the environmental
protection agency's criteria for efficiency and performance.
Source: official text