NMSA 1978, § 7-2A-8.6 — 7-2A-8.6

Credit for preservation of cultural property; corporate
income tax credit.

# A.

Tax credits for the preservation of cultural property may be claimed as follows:
(1) to encourage the restoration, rehabilitation and preservation of cultural
properties, a taxpayer that files a corporate income tax return and that is the owner of a
cultural property listed on the official New Mexico register of cultural properties, with its
consent, may claim a credit not to exceed twenty-five thousand dollars ($25,000) in an
amount equal to one-half of the cost of restoration, rehabilitation or preservation of the
cultural property; or
(2) if a cultural property, whose owner may otherwise claim the credit set forth
in Paragraph (1) of this subsection is also located within an arts and cultural district
designated by the state or a municipality pursuant to the Arts and Cultural District Act
[15-5A-1 to 15-5A-7 NMSA 1978], the owner of that cultural property may claim a credit
not to exceed fifty thousand dollars ($50,000), including any credit claimed pursuant to
Paragraph (1) of this subsection, in an amount equal to one-half of the cost of
restoration, rehabilitation or preservation of the cultural property.

# B.

The taxpayer may claim the credit if:
(1) it submitted a plan and specifications for restoration, rehabilitation or
preservation to the committee and received approval from the committee for the plan
and specifications prior to commencement of the restoration, rehabilitation or
preservation;
(2) it received certification from the committee after completing the
restoration, rehabilitation or preservation, or committee-approved phase, that it
conformed to the plan and specifications and preserved and maintained those qualities
of the property that made it eligible for inclusion in the official register; and
(3) the project is completed within twenty-four months of the date the project
is approved by the committee in accordance with Paragraph (1) of this subsection.

# C.

A taxpayer may claim the credit provided in this section for each taxable year in
which preservation, restoration or rehabilitation is carried out. Claims for the credit
provided in this section shall be limited to three consecutive years, and the maximum
aggregate credit allowable shall not exceed twenty-five thousand dollars ($25,000) if
governed by Paragraph (1) of Subsection A of this section, or fifty thousand dollars
($50,000) if governed by Paragraph (2) of Subsection A of this section, for any single
restoration, rehabilitation or preservation project certified by the committee for any
cultural property listed on the official New Mexico register. No single project may extend
beyond a period of more than two years.

# D.

A taxpayer who otherwise qualifies and claims a credit on a restoration,
rehabilitation or preservation project on property owned by a partnership of which the
taxpayer is a member may claim a credit only in proportion to the taxpayer's interest in
the partnership. The total credit claimed by all members of the partnership shall not
exceed twenty-five thousand dollars ($25,000) if governed by Paragraph (1) of
Subsection A of this section, or fifty thousand dollars ($50,000) if governed by
Paragraph (2) of Subsection A of this section, in the aggregate for any single
restoration, preservation or rehabilitation project for any cultural property listed on the
official New Mexico register approved by the committee.

# E.

The credit provided in this section may only be deducted from the taxpayer's
corporate income tax liability. Any portion of the maximum tax credit provided by this
section that remains unused at the end of the taxpayer's taxable year may be carried
forward for four consecutive years; provided, however, the total tax credits claimed
under this section shall not exceed twenty-five thousand dollars ($25,000) if governed
by Paragraph (1) of Subsection A of this section, or fifty thousand dollars ($50,000) if
governed by Paragraph (2) of Subsection A of this section, for any single restoration,
rehabilitation or preservation project for any cultural property listed on the official New
Mexico register.

# F.

The historic preservation division shall promulgate regulations for the
implementation of this section.

# G.

As used in this section:
(1) "committee" means the cultural properties review committee created in
Section 18-6-4 NMSA 1978; and
(2) "historic preservation division" means the historic preservation division of
the cultural affairs department created in Section 18-6-8 NMSA 1978.