NMSA 1978, § 7-9-51.2 — 7-9-51.2

Deduction; gross receipts; sale of construction materials
and labor used for the development of affordable housing
multifamily residential housing projects. (Effective July 1, 2027.)

# A.

Prior to July 1, 2030, receipts from selling construction materials and labor may
be deducted from gross receipts if:
(1) the construction materials and labor are being used for the purpose of
developing multifamily residential housing;
(2) eighty percent or more of the housing units being developed will be
affordable housing;
(3) the construction materials and labor are sold to a qualifying grantee for a
single project that is residential housing pursuant to the Affordable Housing Act
[Chapter 6, Article 27 NMSA 1978]; and
(4) the buyer of the construction materials and labor delivers a nontaxable
transaction certificate to the seller or provides alternative evidence pursuant to Section
7-9-43 NMSA 1978.

# B.

A taxpayer allowed a deduction pursuant to this section shall report the amount
of the deduction to the department in a manner required by the department.

# C.

The deduction 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 deduction.

# D.

As used in this section:
(1) "affordable housing" means multifamily residential housing primarily for
persons or households of low or moderate income;
(2) "building" means a structure capable of being renovated or converted into
affordable housing or a structure that is to be demolished and is located on land that is
donated and upon which affordable housing will be constructed;
(3) "low or moderate income" means a household in which the current annual
income is at or below eighty percent of the area median income for the geographic area
in which the household is located, adjusted for family size, as determined by the United
States department of housing and urban development; and
(4) "multifamily residential housing" means any building or portion thereof that
is primarily occupied, or is designed or intended to be primarily occupied, as a
residence by more than three households. "Multifamily residential housing" includes
congregate housing and transitional or temporary housing for homeless persons.