us-nm/stat
NMSA 1978, § 7-2A-8.9 — Tax credit; certain conveyances of real property
A.
There shall be allowed as a credit against the tax liability imposed by the
Corporate Income and Franchise Tax Act an amount equal to fifty percent of the fair
market value of land or interest in land that is conveyed for the purpose of open space,
natural resource or biodiversity conservation, agricultural preservation or watershed or
historic preservation as an unconditional donation in perpetuity by the landowner or
taxpayer to a public or private conservation agency eligible to hold the land and
interests therein for conservation or preservation purposes. The fair market value of
qualified donations made pursuant to this section shall be substantiated by a "qualified
appraisal" prepared by a "qualified appraiser", as those terms are defined under
applicable federal laws and regulations governing charitable contributions.
B.
The amount of the credit that may be claimed by a taxpayer shall not exceed one
hundred thousand dollars ($100,000) for a conveyance made prior to January 1, 2008
and shall not exceed two hundred fifty thousand dollars ($250,000) for a conveyance
made on or after that date. In addition, in a taxable year the credit used may not exceed
the amount of corporate income tax otherwise due. A portion of the credit that is unused
in a taxable year may be carried over for a maximum of twenty consecutive taxable
years following the taxable year in which the credit originated until fully expended. A
taxpayer may claim only one tax credit per taxable year.
C.
Qualified donations shall include the conveyance in perpetuity of a fee interest in
real property or a less-than-fee interest in real property, such as a conservation
restriction, preservation restriction, agricultural preservation restriction or watershed
preservation restriction, pursuant to the Land Use Easement Act [47-12-1 to 47-12-6
NMSA 1978]; provided that the less-than-fee interest qualifies as a charitable
contribution deduction under Section 170(h) of the Internal Revenue Code. Dedications
of land for open space for the purpose of fulfilling density requirements to obtain
subdivision or building permits shall not be considered as qualified donations pursuant
to the Land Conservation Incentives Act [75-9-1 to 75-9-6 NMSA 1978].
D.
Qualified donations shall be eligible for the tax credit if the donations are made to
the state of New Mexico, a political subdivision thereof or a charitable organization
described in Section 501(c)(3) of the Internal Revenue Code and that meets the
requirements of Section 170(h)(3) of that code.
E.
To be eligible for treatment as qualified donations under this section, land or
interests in lands must be certified by the secretary of energy, minerals and natural
resources as fulfilling the purposes as set forth in Section 5-9-2 NMSA 1978. The use
and protection of the lands, or interests therein, for open space, natural area protection,
biodiversity habitat conservation, land preservation, agricultural preservation, historic
preservation or similar use or purpose of the property shall be assured in perpetuity.
F.
A taxpayer may apply for certification of eligibility for the tax credit provided by
this section from the energy, minerals and natural resources department. If the energy,
minerals and natural resources department determines that the application meets the
requirements of this section and that the property conveyed will not adversely affect the
property rights of contiguous landowners, it shall issue a certificate of eligibility to the
taxpayer, which shall include a calculation of the maximum amount of tax credit for
which the taxpayer would be eligible. The energy, minerals and natural resources
department may issue rules governing the procedure for administering the provisions of
this subsection.
G.
To receive a credit pursuant to this section, a person shall apply to the taxation
and revenue department on forms and in the manner prescribed by the department. The
application shall include a certificate of eligibility issued by the energy, minerals and
natural resources department pursuant to Subsection F of this section. If all of the
requirements of this section have been complied with, the taxation and revenue
department shall issue to the applicant a document granting the tax credit. The
document shall be numbered for identification and declare its date of issuance and the
amount of the tax credit allowed for the qualified donation made pursuant to this section.
H.
The tax credit represented by a document issued pursuant to Subsection G of
this section for a conveyance made on or after January 1, 2008, or an increment of that
tax credit, may be sold, exchanged or otherwise transferred, and may be carried
forward for a period of twenty taxable years following the taxable year in which the
credit originated until fully expended. A tax credit or increment of a tax credit may only
be transferred once. The credit may be transferred to any taxpayer. A taxpayer to whom
a credit has been transferred may use the credit for the taxable year in which the
transfer occurred and unused amounts may be carried forward to succeeding taxable
years, but in no event may the transferred credit be used more than twenty years after it
was originally issued.
I.
A tax credit issued pursuant to this section shall be transferred through a
qualified intermediary. The qualified intermediary shall, by means of a sworn notarized
statement, notify the taxation and revenue department of the transfer and of the date of
the transfer within ten days of the transfer. Credits shall only be transferred in
increments of ten thousand dollars ($10,000) or more. The qualified intermediary shall
keep an account of the credits and have the authority to issue sub-numbers registered
with the taxation and revenue department and traceable to the original credit.
J.
If a charitable deduction is claimed on the taxpayer's federal income tax for any
contribution for which the credit provided by this section is claimed, the taxpayer's
itemized deductions for New Mexico income tax shall be reduced by the amount of the
deduction for the contribution in order to determine the New Mexico taxable income of
the taxpayer.
K.
For the purposes of this section:
(1) "qualified intermediary" does not include a person who has been
previously convicted of a felony, who has had a professional license revoked, who is
engaged in the practice defined in Section 61-28B-3 NMSA 1978 and who is identified
in Section 61-29-2 NMSA 1978, and does not include any entity owned wholly or in part
or employing any of the foregoing persons; and
(2) "taxpayer" means a citizen or resident of the United States, a domestic
partnership, a limited liability company, a domestic corporation, an estate, including a
foreign estate, or a trust.
Source: official text