A. To stimulate the creation of new jobs and revitalize economically depressed areas within New Mexico enterprise zones, any taxpayer who files an individual New Mexico income tax return, who is not a dependent of another individual and who is the owner of a qualified business facility may claim a credit in an amount equal to one-half of the cost, not to exceed fifty thousand dollars ($50,000), incurred to restore, rehabilitate or renovate a qualified business facility.
B. A taxpayer may claim the credit provided in this section for each taxable year in which restoration, rehabilitation or renovation is carried out. Except as provided in Subsection E of this section, claims for the credit provided in this section shall be limited to three consecutive years, and the maximum aggregate credit allowable shall not exceed fifty thousand dollars ($50,000) for any single restoration, rehabilitation or renovation project for any qualified business facility. Each claim for a qualified business facility rehabilitation credit shall be accompanied by documentation and certification as the department may require by regulation or instruction.
C. No credit may be claimed or allowed pursuant to the provisions of this section for any costs incurred for a restoration, rehabilitation or renovation project for which a credit may be claimed pursuant to the provisions of Section 7-2-18.2 or Section 7-9A-1 NMSA 1978.
D. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the credit that would have been allowed on a joint return.
E. A taxpayer who otherwise qualifies and claims a credit on a restoration, rehabilitation or renovation project on a building owned by a partnership or other business association of which the taxpayer is a member may claim a credit only in proportion to his interest in the partnership or association. The total credit claimed by all members of the partnership or association shall not exceed fifty thousand dollars ($50,000) in the aggregate for any single restoration, rehabilitation or renovation project for a qualified business facility.
F. The credit provided in this section may only be deducted from the taxpayer's 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 taxable years; provided, the total tax credits claimed under this section shall not exceed fifty thousand dollars ($50,000) for any single restoration, rehabilitation or renovation project for a qualified business facility.
G. As used in this section:
(1) "qualified business facility" means a building located in a New Mexico enterprise zone that is suitable for use and is put into service by a person in the manufacturing, distribution or service industry immediately following the restoration, rehabilitation or renovation project; provided, the building must have been vacant for the twenty-four month period immediately preceding the commencement of the restoration, rehabilitation or renovation project; and
(2) "restoration, rehabilitation or renovation" includes:
(a) the construction services necessary to ensure that a building is in compliance with applicable zoning codes, is safe for occupancy and meets the operating needs of a person in the manufacturing, distribution or service industry; and
(b) expansion of or an addition to a building if the expansion or addition does not increase the usable square footage of the building by more than ten percent of the usable square footage of the building prior to the restoration, rehabilitation or renovation project.
History: Laws 1994, ch. 115, § 1.
Effective dates. — Laws 1994, ch. 115, § 3 made Laws 1994, ch. 115, § 1 effective on July 1, 1994.
Structure New Mexico Statutes
Article 2 - Income Tax General Provisions
Section 7-2-3 - Imposition and levy of tax.
Section 7-2-5.2 - Exemption; income of persons sixty-five and older or blind.
Section 7-2-5.6 - Exemption; medical care savings accounts.
Section 7-2-5.7 - Exemption; income of individuals one hundred years of age or older.
Section 7-2-5.8 - Exemption for low- and middle-income taxpayers.
Section 7-2-5.11 - Exemption; armed forces salaries.
Section 7-2-7 - Individual income tax rates.
Section 7-2-7 - Individual income tax rates. (Effective January 1, 2006 through December 31, 2007.)
Section 7-2-7.2 - Tax rebate; 2005 taxable year. (Effective for 2005 tax year.)
Section 7-2-7.3 - Exemption; 2005 taxable year rebate. (Effective for 2005 tax year.)
Section 7-2-7.4 - 2020 income tax rebate.
Section 7-2-9 - Tax computation; alternative method.
Section 7-2-10 - Income taxes applied to individuals on federal areas.
Section 7-2-11 - Tax credit; income allocation and apportionment.
Section 7-2-12 - Taxpayer returns; payment of tax.
Section 7-2-12.1 - Limitation on claiming of credits and tax rebates.
Section 7-2-12.2 - Estimated tax due; payment of estimated tax; penalty.
Section 7-2-13 - Credit for taxes paid other states by resident individuals.
Section 7-2-14 - Low-income comprehensive tax rebate.
Section 7-2-14.5 - Imposition of tax; limitations.
Section 7-2-18.2 - Credit for preservation of cultural property; refund.
Section 7-2-18.4 - Qualified business facility rehabilitation credit; income tax credit.
Section 7-2-18.5 - Welfare-to-work tax credit.
Section 7-2-18.8 - Credit; certain electronic equipment.
Section 7-2-18.10 - Tax credit; certain conveyances of real property.
Section 7-2-18.11 - Job mentorship tax credit.
Section 7-2-18.15 - Working families tax credit.
Section 7-2-18.17 - Angel investment credit.
Section 7-2-18.18 - Renewable energy production tax credit.
Section 7-2-18.19 - Sustainable building tax credit.
Section 7-2-18.21 - Credit; blended biodiesel fuel.
Section 7-2-18.22 - Tax credit; rural health care practitioner tax credit.
Section 7-2-18.23 - Refundable credit; 2007 taxable year.
Section 7-2-18.24 - Geothermal ground-coupled heat pump tax credit.
Section 7-2-18.25 - Advanced energy income tax credit.
Section 7-2-18.26 - Agricultural biomass income tax credit.
Section 7-2-18.27 - Credit; physician participation in cancer treatment clinical trials.
Section 7-2-18.28 - Veteran employment tax credit.
Section 7-2-18.29 - 2015 sustainable building tax credit.
Section 7-2-18.30 - Foster youth employment income tax credit.
Section 7-2-18.31 - New solar market development income tax credit.
Section 7-2-18.32 - 2021 sustainable building tax credit.
Section 7-2-20 - Information returns.
Section 7-2-21 - Fiscal years permitted.
Section 7-2-21.1 - Accounting methods.
Section 7-2-22 - Administration.
Section 7-2-23 - Finding[; wildlife funds].
Section 7-2-24 - Optional designation of tax refund contribution [; game protection fund].
Section 7-2-24.1 - Optional designation of tax refund contribution for tree plantings.
Section 7-2-24.2 - Optional designation of tax refund contribution; healthy soil program.
Section 7-2-28 - Optional designation of tax refund contribution.
Section 7-2-28.1 - Veterans' state cemetery fund; created.
Section 7-2-30 - Optional designation of tax refund contribution [; substance abuse education fund].
Section 7-2-30.4 - Optional designation of tax refund contribution; Vietnam veterans memorial.
Section 7-2-30.5 - Optional designation of tax refund contribution; veterans' enterprise fund.
Section 7-2-30.6 - Optional designation of tax refund contribution; lottery tuition fund.
Section 7-2-30.7 - Optional designation of tax refund contribution; horse shelter rescue fund.
Section 7-2-30.8 - Finding; optional designation of tax refund contribution; senior services.
Section 7-2-30.9 - Optional designation of tax refund contribution; animal care and facility fund.
Section 7-2-30.11 - Optional designation of tax refund contribution; New Mexico housing trust fund.
Section 7-2-31 - Optional designation of tax refund contribution.
Section 7-2-31.1 - Optional refund contribution provisions; conditional repeal.
Section 7-2-32 - Deduction-payments into education trust fund.
Section 7-2-34 - Deduction; net capital gain income.
Section 7-2-36 - Deduction; expenses related to organ donation.
Section 7-2-37 - Deduction; unreimbursed or uncompensated medical care expenses.
Section 7-2-39 - Deduction from net income for certain dependents.
Section 7-2-40 - Deduction; income from leasing a liquor license.