Category: New Mexico
New Mexico Nonrefundable Credits
Cultural Property Preservation Credit
The credit for preservation of cultural property is 50% of the costs of a project for the restoration, rehabilitation or preservation of cultural property listed on the official New Mexico Register of Cultural Properties, not to exceed $25,000. The Cultural Properties Review Committee must approve the project plan before he restoration begins and certify that the completed project conforms to the plan. Attach the Historical Preservation Division Certificate and Form PIT-4, Preservation of Cultural Properties Claim Form. For tax years beginning on or after January 1, 2009, if the property is also certified by the state coordinator of the New Mexico Arts and Cultural Districts as located within the boundaries of a state-certified or municipally-certified arts and cultural district, pursuant to the Arts and Cultural District Act, a maximum of $50,000 credit will be allowed. For assistance claiming the credit, call the New Mexico Taxation and Revenue Department at (505) 827-0827.
Business Facility Rehab Credit
Credit is available for some pre-approved costs of restoration, rehabilitation or renovation of a qualified business facility located in a New Mexico enterprise zone. The facility must be suitable for use and put into service in the manufacturing, distribution or service industry immediately following the restoration, rehabilitation or renovation project. This credit is for 50% of the pre-approved costs. It may not exceed $50,000. Attach the completed Form PIT-5, Qualified Business Facility Rehabilitation. Contact the Community Development Team Leader to obtain the Economic Development Department’s advance approval and certification for your project. For assistance claiming the credit, call the New Mexico Taxation and Revenue Department at (505) 827-6811.
Rural Job Tax Credit
A Rural Job Tax Credit is available for employers in rural areas of New Mexico who qualify for Job Training Incentive Program assistance. Eligible employers may earn the rural job tax credit for each qualifying job created after July 1, 2000. The employer must certify the wages paid to each eligible employee. See Form RPD-41247, Certificate of Eligibility for the Rural Job Tax Credit, on the TRD web site.
Technology Jobs Tax Credit
The Technology Jobs Tax Credit is 4% of qualified expenditures for conducting research and development. An additional 4% credit is available if the taxpayer increases its annual payroll by at least $75,000 for every $1 million in qualified expenditures it claims in a tax year. The basic and additional credits double for businesses in rural areas. The taxpayer must make the eligible expenditures for research and development at a qualified facility. For a list of qualified ed expenditures, see the instructions for Application for Technology Jobs Tax Credit, RPD-41239.
Credit for Electronic Card-Reading Equipment
New Mexico has a one-time income tax credit for businesses that purchase electronic identification card-readers for age verification. A business may claim this credit on a New Mexico personal income tax return or corporate income and franchise tax return if:
- The business is licensed to sell cigarettes, tobacco products or alcoholic beverages, and
- The business has purchased and is using equipment that electronically reads identification cards to verify age.
The credit amount is $300 for each business location using electronic identificationcation card-readers. The total credit claimed by all members of the partnership or association may not exceed $300 for each business location. Claim this non-refundable credit in the tax year the equipment was purchased and put into use. You cannot carry excess amounts forward or back into another tax year.
Job Mentorship Tax Credit
A taxpayer owning a New Mexico business may claim a Job Mentorship Tax Credit for employing qualified students who take part in a career preparation education program. The credit equals 50% of gross wages paid to a maximum of ten qualified students. The business must employ the students for up to 320 hours each during the tax year. A taxpayer may not claim a credit for one qualified individual for more than three tax years. The maximum credit for one tax year is $12,000.
To apply for this credit, obtain a Form RPD-41280, Job Mentorship Tax Credit Certificate, from the secondary school operating the career preparation education program for each qualified student you employ.
Complete Form RPD-41281, Job Mentorship Tax Credit Claim Form, and attach it to your Form PIT-1 with Schedule PIT-CR. Enter the credit claimed on Schedule PIT-CR. Also, attach a Job Mentorship Tax Credit Certificate for each qualified student employed during the tax year. You may carry unused credit forward for three consecutive years. A partnership or other business association of which the taxpayer is a member may claim a credit in proportion to the taxpayer’s interest in the partnership or association. For assistance claiming this credit contact TRD at 505-476-3683.
Land Conservation Incentives Credit
Persons who donate land, or interest in land, to private or public conservation agencies for conservation purposes may claim a credit from personal or corporate income tax, equal to 50% of the fair market value of the land transferred up to $100,000 for donations made prior to January 1, 2008, and $250,000 for donations made on or after January 1, 2008. Additionally for a donation made after January 1, 2008, the credit may be sold, exchanges or transferred in increments of $10,000 or more.
To apply for this credit, contact the New Mexico Energy, Minerals and Natural Resources Department who certifies the eligibility of the donation. For assistance claiming this credit, contact the New Mexico Taxation and Revenue Department at (505) 476-3683.
Affordable Housing Tax Credit
Beginning January 1, 2006, the Mortgage Finance Authority (MFA) issued vouchers to persons who have invested in affordable housing projects. The vouchers, good for up to 50% of the investment, may be sold or transferred, provided the MFA is notified of the transfer, and a voucher has been re-issued to the transferee. “Affordable housing” covers land acquisition, construction, building acquisition, remodeling, improvement, rehabilitation, conversion or weatherization for single-family or multi-family residences approved by MFA.
After receiving the vouchers from MFA, the taxpayer may apply them for a credit against gross receipts, compensating, withholding, personal income or corporate income tax liabilities and carry unused credits forward for five years. The MFA approves the projects and issues the vouchers. For assistance claiming this credit, contact the New Mexico Taxation and Revenue Department at (505) 476-3683.
Solar Market Development Tax Credit
A taxpayer who has received certification from the Energy, Minerals and Natural Resources Department (EMNRD) for the purchase and installation of a qualified photovoltaic or solar thermal system in a residence, business or agricultural enterprise in New Mexico owned by that taxpayer may claim the credit. The photovoltaic or solar thermal system must be purchased and installed after January 1, 2006, but before December 31, 2016. The credit, which may not exceed $9,000, is available for up to 10% of the purchase and installation costs of a qualified photovoltaic or solar thermal system, reduced by the allowable federal tax credit. Unused credit may be carried forward for a maximum of ten years.
Note: For tax years beginning on or after January 1, 2009, the solar market development income tax credit allowed was up to 30% of the purchase and installation costs of a qualified photovoltaic or solar thermal system, reduced by the allowable federal tax credit, whether or not the federal credit was claimed. The credit could not exceed $9,000. For assistance claiming this credit, contact the New Mexico Taxation and Revenue Department at (505) 476-3683.
Blended Biodiesel Fuel Tax Credit
Beginning January 1, 2007, but not after December 31, 2012, a rack operator or supplier who is required to pay the special fuel excise tax and who files a New Mexico personal or corporate income tax return may claim a credit against the tax due on the return for each gallon of blended biodiesel fuel on which that person paid the special fuel excise tax in the tax year, or would have paid the special fuel excise tax in the tax year, but for certain deductions allowed for special fuel sold or the treaty exemption for North Atlantic Treaty Organization use.
To qualify for the credit, a taxpayer must be a registered New Mexico supplier who files Form RPD-41306, Combined Fuel Tax Report, reporting qualifying biodiesel fuel receipts. For assistance claiming this credit, call the New Mexico Taxation and Revenue Department at (505) 476-3683.
Sustainable Building Tax Credit
A credit is available for the construction in New Mexico of a sustainable building or for the renovation of an existing building in New Mexico into a sustainable building after January 1, 2007. The building may be for residential or commercial use, but is not available for a building owned by an entity that does not file a New Mexico corporate or personal income tax return. The amount of the sustainable building tax credit is calculated based on the certification level the building has achieved in the LEED green building rating system or the building green New Mexico rating system and the amount of qualified occupied square footage in the building. Unused credit may be transferred or carried forward subject to certain limitations.
To obtain a certificate of eligibility contact the Energy, Minerals and Natural Resources Department. You must also submit Form RPD-41327, Sustainable Building Tax Credit Approval, along with a copy of the certificate of eligibility, to the Taxation and Revenue Department before claiming the credit on your New Mexico income tax return.
Angel Investment Tax Credit
A taxpayer who files a New Mexico personal income tax return, who is not a dependent of another individual, is an accredited investor and makes a qualified investment may claim a credit for 25% of the qualifying investment in a high-technology or manufacturing business. For the accredited investor, the maximum amount of investment in a business for which a credit may be allowed is $100,000 per year for no more than three years. Accredited investors are allowed credits for two qualifying investments annually, provided that each investment is in a different qualified business. Unused credit may be carried forward for three consecutive years. A claim for the credit may not be made or allowed with respect to any investment made before January 1, 2007 or after December 31, 2016.
For assistance claiming the credit, contact the New Mexico Taxation and Revenue Department at (505) 476-3683.
Rural Health Care Practitioners Credit
Beginning January 1, 2007, a taxpayer who files a New Mexico personal income tax return, who is not a dependent of another individual, who is an eligible health care practitioner and who has provided health care services in New Mexico in a rural health care underserved area may claim a credit against personal income tax liability. The credit may be claimed and allowed in an amount that shall not exceed $5,000 for eligible physicians, osteopathic physicians, dentists, clinical psychologists, podiatrists, and optometrists who qualify, and up to $3,000 for dental hygienists, physician assistants, certified nurse-midwives, certified registered nurse anesthetists, certified nurse practitioners and clinical nurse specialists who qualify. If the amount of the credit claimed exceeds a taxpayer’s tax liability for the taxable year in which the credit is being claimed, the excess may be carried forward for three consecutive tax years.
To qualify for the credit, an eligible health care practitioner shall have provided health care during a taxable year for at least 2,080 hours at a practice site located in an approved rural health care underserved area. An eligible rural health care practitioner who provides services for at least 1,040 hours, but less than 2,080 hours, at a practice site located in an approved rural health care underserved area during a tax year is eligible for one-half of the credit amount.
Before an eligible health care practitioner may claim the rural health care practitioner tax credit, the practitioner shall submit an application to the New Mexico Department of Health that describes the practitioner's clinical practice and contains additional information that NMDOH may require. NMDOH will determine whether an eligible health care practitioner qualifies for the rural health care practitioner tax credit, and will issue a certificate to each qualifying eligible health care practitioner.
Agricultural Water Conservation Tax Credit
A taxpayer may claim a credit against the taxpayer’s personal or corporate tax liability for expenses incurred by the taxpayer for eligible improvements in irrigation systems or water management methods. Eligible improvements means an improvement that is:
- made on or after January 1, 2008;
- consistent and complies with a water conservation plan approved by the local soil and water conservation district in which the improvement is located; and
- primarily designed to substantially conserve water on land in New Mexico that is owned or leased by the taxpayer and used by the taxpayer or the taxpayer’s lessee to produce agricultural products, harvest or grow trees, or sustain livestock.
The amount of the credit is 35% of eligible expenses incurred in calendar year 2008 and 50% of eligible expenses incurred in subsequent years through December 31, 2012. The total credit allowed in a tax year may not exceed $10,000.
For assistance claiming the credit, call (505) 476-3683.
Note: The agricultural water conservation tax credit provisions are repealed effective January 1, 2013.
Advanced Energy Tax Credit
A taxpayer that holds an interest in a qualified electric generating facility located in New Mexico may be eligible to apply for and claim the advanced energy tax credit. The amount of the credit is 6% of the eligible generation plant costs. The aggregrate amount of tax credit that may be claimed with respect to a qualified generating facility is limited to $60,000,000. If the credit amount exceeds the claimant's liability, the excess can be carried forward for up to ten years.
Geothermal Ground-Coupled Heat Pump Tax Credit
A credit available for a taxpayer who has purchased and installed a geothermal ground-coupled heat pump after January 1, 2010, but before December 31, 2020. To qualify for the tax credit, the taxpayer must install the pump in a residence, business or agricultural enterprise in New Mexico owned by that taxpayer or by a partnership or other business association of which the taxpayer is a member. Unused credit may be carried forward for a maximum of ten consecutive years following the tax year for which the credit was approved.
Agricultural Biomass Tax Credit
A credit is available for a taxpayer who owns a dairy or feedlot and who files a personal or corporate income tax return for a taxable year beginning on or after January 1, 2011 and ending prior to January 1, 2020. The New Mexico Taxation and Revenue Department may allow a credit equal to $5 per wet ton of agricultural biomass transported from the taxpayer's dairy or feedlot to a facility that uses agricultural biomass to generate electricity or make biocrude or other liquid or gaseous fuel for commercial use.
Film Production Tax Credit
An Approved Film Production Tax Credit to be applied to tax due (only), for certain production and postproduction expenditures made in New Mexico for an eligible film production company. To qualify for this credit, a film production company must first be approved by the Film Division of the New Mexico Economic Development Department. Contact the Film Division at (505) 476-5600.
For additional information pertaining to these Nonrefundable Tax Credits, please see Form PIT-CR.