New Mexico 2025 Regular Session

New Mexico House Bill HB511 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 511
29	29	57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
30	30	INTRODUCED BY
31	31	Rebecca Dow and Jonathan A. Henry and Alan T. Martinez
32	32	and Andrea Romero
33	33	AN ACT
34	34	RELATING TO TAXATION; CREATING THE RETAIL CENTER RENOVATION
35	35	INCOME TAX CREDIT AND THE RETAIL CENTER RENOVATION CORPORATE
36	36	INCOME TAX CREDIT.
37	37	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
38	38	SECTION 1. A new section of the Income Tax Act is enacted
39	39	to read:
40	40	"[NEW MATERIAL] RETAIL CENTER RENOVATION INCOME TAX
41	41	CREDIT.--
42	42	A. A taxpayer who, beginning on the effective date
43	43	of this section and prior to January 1, 2035, incurs qualifying
44	44	renovation costs for a retail center renovation project may
45	45	claim a credit against the taxpayer's tax liability imposed
46	46	pursuant to the Income Tax Act. The tax credit provided by
47	47	this section may be referred to as the "retail center
48	48	.230727.2 underscored material = new
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75	75	renovation income tax credit".
76	76	B. The credit provided by this section shall be in
77	77	an amount equal to ten percent of the qualifying renovation
78	78	costs, not to exceed one million five hundred thousand dollars
79	79	($1,500,000) per retail center renovation project.
80	80	C. A taxpayer who seeks to claim a tax credit
81	81	provided by this section shall, within one calendar year of the
82	82	date the retail center renovation project is completed, apply
83	83	for certification of eligibility from the economic development
84	84	department on forms and in the manner prescribed by that
85	85	department. In addition to any other proof required by that
86	86	department, the application shall include a compliance
87	87	certificate issued by the local jurisdiction verifying that the
88	88	retail center renovation project was completed in compliance
89	89	with applicable building codes and permitting requirements; and
90	90	a notarized declaration from the property owner or project
91	91	manager affirming that at least fifty percent of the total
92	92	leaseable square footage of the retail center was renovated
93	93	with qualifying renovation costs incurred by the taxpayer. The
94	94	aggregate amount of credits pursuant to this section and
95	95	Section 2 of this 2025 act that may be certified as eligible in
96	96	a calendar year is fifteen million dollars ($15,000,000).
97	97	Completed applications shall be considered in the order
98	98	received. If a taxpayer is eligible for the credit, a dated
99	99	certificate of eligibility shall be issued to the taxpayer
100	100	.230727.2
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128	128	providing the amount of credit for which the taxpayer is
129	129	eligible; provided that applications for certification received
130	130	after the limitation on the aggregate amount of credits has
131	131	been met in a calendar year shall not be approved.
132	132	D. That portion of approved credit claimed by a
133	133	taxpayer that exceeds the taxpayer's income tax liability in
134	134	the taxable year in which the credit is claimed may be carried
135	135	forward for five consecutive taxable years.
136	136	E. To receive a tax credit provided by this
137	137	section, a taxpayer shall claim the credit on forms and in the
138	138	manner prescribed by the department within twelve months
139	139	following the calendar year in which the certificate of
140	140	eligibility was issued.
141	141	F. A taxpayer who claims a retail center renovation
142	142	income tax credit shall not be eligible to claim another tax
143	143	credit for the same qualifying renovation costs or renovation
144	144	project, including the retail center renovation corporate
145	145	income tax credit pursuant to Section 2 of this 2025 act or the
146	146	federal new markets tax credit under Section 45D of the
147	147	Internal Revenue Code.
148	148	G. Married individuals filing separate returns for
149	149	a taxable year for which they could have filed a joint return
150	150	may each claim only one-half of the retail center renovation
151	151	income tax credit that would have been claimed on a joint
152	152	return.
153	153	.230727.2
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181	181	H. A taxpayer may be allocated the right to claim a
182	182	retail center renovation income tax credit in proportion to the
183	183	taxpayer's ownership interest if the taxpayer owns an interest
184	184	in a business entity that is taxed for federal income tax
185	185	purposes as a partnership or limited liability company and that
186	186	business entity has met all of the requirements to be eligible
187	187	for the credit. The total credit claimed by all members of the
188	188	partnership or limited liability company shall not exceed the
189	189	allowable credit pursuant to this section.
190	190	I. A taxpayer whose application pursuant to this
191	191	section for certification of eligibility is denied may appeal
192	192	to the administrative hearings office for a hearing.
193	193	J. The credit provided by this section shall be
194	194	included in the tax expenditure budget pursuant to Section
195	195	7-1-84 NMSA 1978, including the annual aggregate cost of the
196	196	credit, number of taxpayers claiming the credit and economic
197	197	impact of the credit, including job creation and change in
198	198	property values.
199	199	K. As used in this section:
200	200	(1) "retail center" means a commercial real
201	201	estate property that:
202	202	(a) is located in New Mexico;
203	203	(b) contains at least three separate
204	204	businesses engaged in retail, food or beverage sales;
205	205	(c) is leased or licensed by an owner to
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234	234	retail or food and beverage businesses; and
235	235	(d) is primarily zoned for commercial
236	236	use or mixed-use development;
237	237	(2) "retail center renovation project" means
238	238	the restoration, renovation, rehabilitation or adaptive reuse
239	239	of at least fifty percent of the overall square footage of a
240	240	retail center, including both indoor and outdoor property
241	241	within the exterior boundaries of the retail center; and
242	242	includes:
243	243	(a) conversion of a retail center into a
244	244	mixed-use development with a combination of commercial, office
245	245	or residential spaces; or
246	246	(b) adaptive reuse of a retail center
247	247	into multifamily residential housing; and
248	248	(3) "qualifying renovation costs" means
249	249	expenditures, with regard to a retail center renovation
250	250	project, for:
251	251	(a) planning, designing or engineering
252	252	of the retail center renovation project;
253	253	(b) construction, structural and site
254	254	improvements, roofing, heating, ventilation and air
255	255	conditioning, plumbing, electrical work and facade
256	256	enhancements;
257	257	(c) accessibility improvements,
258	258	including upgrades to comply with the federal Americans with
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287	287	Disabilities Act of 1990;
288	288	(d) energy efficiency enhancements, such
289	289	as installation of solar panels or high-efficiency heating,
290	290	ventilation and air conditioning systems; and
291	291	(e) construction-related equipment,
292	292	whether purchased or rented."
293	293	SECTION 2. A new section of the Corporate Income and
294	294	Franchise Tax Act is enacted to read:
295	295	"[NEW MATERIAL] RETAIL CENTER RENOVATION CORPORATE INCOME
296	296	TAX CREDIT.--
297	297	A. A taxpayer that, beginning on the effective date
298	298	of this section and prior to January 1, 2035, incurs qualifying
299	299	renovation costs for a retail center renovation project may
300	300	claim a credit against the taxpayer's tax liability imposed
301	301	pursuant to the Corporate Income and Franchise Tax Act. The
302	302	tax credit provided by this section may be referred to as the
303	303	"retail center renovation corporate income tax credit".
304	304	B. The credit provided by this section shall be in
305	305	an amount equal to ten percent of the qualifying renovation
306	306	costs, not to exceed one million five hundred thousand dollars
307	307	($1,500,000) per retail center renovation project.
308	308	C. A taxpayer that seeks to claim a tax credit
309	309	provided by this section shall, within one calendar year of the
310	310	date the retail center renovation project is completed, apply
311	311	for certification of eligibility from the economic development
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340	340	department on forms and in the manner prescribed by that
341	341	department. In addition to any other proof required by that
342	342	department, the application shall include a compliance
343	343	certificate issued by the local jurisdiction verifying that the
344	344	retail center renovation project was completed in compliance
345	345	with applicable building codes and permitting requirements; and
346	346	a notarized declaration from the property owner or project
347	347	manager affirming that at least fifty percent of the total
348	348	leaseable square footage of the retail center was renovated
349	349	with qualifying renovation costs incurred by the taxpayer. The
350	350	aggregate amount of credits pursuant to this section and
351	351	Section 1 of this 2025 act that may be certified as eligible in
352	352	a calendar year is fifteen million dollars ($15,000,000).
353	353	Completed applications shall be considered in the order
354	354	received. If a taxpayer is eligible for the credit, a dated
355	355	certificate of eligibility shall be issued to the taxpayer
356	356	providing the amount of credit for which the taxpayer is
357	357	eligible; provided that applications for certification received
358	358	after the limitation on the aggregate amount of credits has
359	359	been met in a calendar year shall not be approved.
360	360	D. That portion of approved credit claimed by a
361	361	taxpayer that exceeds the taxpayer's income tax liability in
362	362	the taxable year in which the credit is claimed may be carried
363	363	forward for five consecutive taxable years.
364	364	E. To receive a tax credit provided by this
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393	393	section, a taxpayer shall claim the credit on forms and in the
394	394	manner prescribed by the department within twelve months
395	395	following the calendar year in which the certificate of
396	396	eligibility was issued.
397	397	F. A taxpayer that claims a retail center
398	398	renovation corporate income tax credit shall not be eligible to
399	399	claim another tax credit for the same qualifying renovation
400	400	costs or renovation project, including the retail center
401	401	renovation income tax credit pursuant to Section 1 of this 2025
402	402	act or the federal new markets tax credit under Section 45D of
403	403	the Internal Revenue Code.
404	404	G. A taxpayer whose application pursuant to this
405	405	section for certification of eligibility is denied may appeal
406	406	to the administrative hearings office for a hearing.
407	407	H. The credit provided by this section shall be
408	408	included in the tax expenditure budget pursuant to Section
409	409	7-1-84 NMSA 1978, including the annual aggregate cost of the
410	410	credit, number of taxpayers claiming the credit and economic
411	411	impact of the credit, including job creation and change in
412	412	property values.
413	413	I. As used in this section:
414	414	(1) "retail center" means a commercial real
415	415	estate property that:
416	416	(a) is located in New Mexico;
417	417	(b) contains at least three separate
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446	446	businesses engaged in retail, food or beverage sales;
447	447	(c) is leased or licensed by an owner to
448	448	retail or food and beverage businesses; and
449	449	(d) is primarily zoned for commercial
450	450	use or mixed-used development;
451	451	(2) "retail center renovation project" means
452	452	the restoration, renovation, rehabilitation or adaptive reuse
453	453	of at least fifty percent of the overall square footage of a
454	454	retail center, including both indoor and outdoor property
455	455	within the exterior boundaries of the retail center; and
456	456	includes:
457	457	(a) conversion of a retail center into a
458	458	mixed-use development with a combination of commercial, office
459	459	or residential spaces; or
460	460	(b) adaptive reuse of a retail center
461	461	into multifamily residential housing; and
462	462	(3) "qualifying renovation costs" means
463	463	expenditures, with regard to a retail center renovation
464	464	project, for:
465	465	(a) planning, designing or engineering
466	466	of the retail center renovation project;
467	467	(b) construction, structural and site
468	468	improvements, roofing, heating, ventilation and air
469	469	conditioning, plumbing, electrical work and facade
470	470	enhancements;
471	471	.230727.2
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499	499	(c) accessibility improvements,
500	500	including upgrades to comply with the federal Americans with
501	501	Disabilities Act of 1990;
502	502	(d) energy efficiency enhancements, such
503	503	as installation of solar panels or high-efficiency heating,
504	504	ventilation and air conditioning systems; and
505	505	(e) construction-related equipment,
506	506	whether purchased or rented."
507	507	SECTION 3. DELAYED REPEAL.--Sections 1 and 2 of this act
508	508	are repealed effective January 1, 2036.
509	509	SECTION 4. APPLICABILITY.--The provisions of this act
510	510	apply to taxable years beginning on or after January 1, 2025.
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