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Sunday
Oct252009

Some Remodeling Can Earn You up to $25K in Tax Credits—State Income Tax Incentive Program

If your home is in the historic overlay zone of Huning Highlands (most are) and you're thinking about remodeling your home, there are some changes that might earn you up to $25,000 in New Mexico tax credits.

The State of New Mexico Investment Tax Credit program was created on January 1, 1984. The state income tax credit is available to owners of historic structures who accomplish qualified, rehabilitation on a structure or stabilization or protection of an archaeological site. It is a two-part process. State applications are available on-line in MS Word format or from the office. Criteria of the program are:

  • Property must be individually listed in, or contributing to a historic district listed in the State Register of Cultural Properties. The property may be a personal residence, income-producing property (such as an apartment building or office), or an archaeological site.
  • The State Cultural Properties Review Committee (CPRC) must approve the proposed rehabilitation work prior to the beginning of the project. The work will conform to the guidelines in the regulation NMAC 4.10.9 (PDF format) as interpreted by the CPRC. All parts of the project must be described in Part 1 of the application, including those items wherein costs may not be eligible toward credit, e.g. a new addition to the structure.
  • The project term expires 24 months from the date of the Part 1 approval. New Part for portions of uncompleted work from previous applications, as long as the project maximum has not been reached.
  • The completed project must be documented in Part 2 of the application and presented to the CPRC for certification. Project expenses must be fully documented and submitted the application.
  • Each program project carries a maximum of $50,000, although the project costs may exceed this amount.
  • Maximum credit is 50% of eligible costs of the approved rehabilitation or $25,000 (50% of project maximum) or 5 years of tax liability, whichever is least. The credit is applied against New Mexico income taxes owed in the year the project is completed and the balance may be carried forward for up to four additional years.

For all the details of this program, follow this link to the New Mexico Historic Preservation Division.

 

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