New Mexico 2025 Regular Session

New Mexico House Bill HB568 Compare Versions

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

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28	28	HOUSE BILL 568
29	29	57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
30	30	INTRODUCED BY
31	31	Cynthia Borrego and Joseph L. Sanchez
32	32	AN ACT
33	33	RELATING TO TAXATION; CREATING THE HOME FIRE RECOVERY INCOME
34	34	TAX CREDIT.
35	35	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
36	36	SECTION 1. A new section of the Income Tax Act is enacted
37	37	to read:
38	38	"[NEW MATERIAL] HOME FIRE RECOVERY INCOME TAX CREDIT.--
39	39	A. A taxpayer who is not a dependent of another
40	40	individual and who, beginning on the effective date of this
41	41	section and prior to January 1, 2031, incurs qualified site-
42	42	built home expenditures for a home in New Mexico to replace a
43	43	prior home of the taxpayer that was destroyed by a wildfire in
44	44	calendar years 2021 through 2023 may claim a tax credit against
45	45	the taxpayer's tax liability imposed pursuant to the Income Tax
46	46	Act in an amount equal to the qualified site-built home
47	47	.231141.1 underscored material = new
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74	74	expenditures incurred by the taxpayer. The tax credit provided
75	75	by this section may be referred to as the "home fire recovery
76	76	income tax credit".
77	77	B. A taxpayer who seeks to claim a tax credit
78	78	pursuant to this section shall apply for certification of
79	79	eligibility for the tax credit from the construction industries
80	80	division of the regulation and licensing department on forms
81	81	and in a manner prescribed by that division. An application
82	82	for certification of the tax credit shall be made no later than
83	83	twelve months after the calendar year in which construction of
84	84	the site-built home is completed. Except as otherwise provided
85	85	in Subsections F and G of this section, only one tax credit
86	86	shall be certified per taxpayer. The construction industries
87	87	division may promulgate rules governing the procedure for
88	88	administering the provisions of this subsection. Completed
89	89	applications shall be considered in the order received.
90	90	C. An application for certification of eligibility
91	91	shall include:
92	92	(1) proof that the taxpayer's prior home was
93	93	destroyed by wildfire in calendar years 2021 through 2023,
94	94	including a sworn statement by the taxpayer;
95	95	(2) proof that the taxpayer incurred
96	96	expenditures for the construction of a site-built home on the
97	97	same property of the taxpayer's prior, wildfire-destroyed home,
98	98	including a contract with a builder;
99	99	.231141.1
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127	127	(3) a sworn statement by the taxpayer and the
128	128	builder of the site-built home that the construction of a new
129	129	site-built home has been completed and stating the date of its
130	130	completion; and
131	131	(4) any additional information the
132	132	construction industries division of the regulation and
133	133	licensing department may require to determine eligibility for
134	134	the credit.
135	135	D. If the construction industries division of the
136	136	regulation and licensing department determines that the
137	137	taxpayer meets the requirements of this section, the division
138	138	shall issue a dated certificate of eligibility to the taxpayer
139	139	providing the amount of home fire recovery income tax credit
140	140	for which the taxpayer is eligible and the taxable year in
141	141	which the credit may be claimed. The construction industries
142	142	division shall provide the department with the certificates of
143	143	eligibility issued pursuant to this subsection in an electronic
144	144	format at regularly agreed-upon intervals.
145	145	E. A taxpayer issued a certificate of eligibility
146	146	shall claim the tax credit in a manner required by the
147	147	department within twelve months of being issued the certificate
148	148	of eligibility.
149	149	F. That portion of the tax credit that exceeds a
150	150	taxpayer's tax liability in the taxable year in which the tax
151	151	credit is claimed shall not be refunded but may be carried
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180	180	forward for a maximum of three consecutive taxable years.
181	181	G. Married individuals filing separate returns for
182	182	a taxable year for which they could have filed a joint return
183	183	may each claim only one-half of the tax credit that would have
184	184	been claimed on a joint return.
185	185	H. A taxpayer may be allocated the right to claim
186	186	the tax credit in proportion to the taxpayer's ownership
187	187	interest if the taxpayer owns an interest in a business entity
188	188	that is taxed for federal income tax purposes as a partnership
189	189	or limited liability company and that business entity has met
190	190	all of the requirements to be eligible for the credit. The
191	191	total credit claimed by all members of the partnership or
192	192	limited liability company shall not exceed the allowable credit
193	193	pursuant to this section.
194	194	I. The department shall compile an annual report on
195	195	the tax credit provided by this section that shall include the
196	196	number of taxpayers approved by the department to receive the
197	197	credit, the aggregate amount of credits approved and any other
198	198	information necessary to evaluate the credit. The department
199	199	shall present the report to the revenue stabilization and tax
200	200	policy committee and the legislative finance committee with an
201	201	analysis of the cost of the tax credit.
202	202	J. As used in this section:
203	203	(1) "home" means a dwelling designed for long-
204	204	term habitation in which the taxpayer resides for a majority of
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233	233	the year;
234	234	(2) "qualified site-built home expenditures"
235	235	means gross expenditures for the construction of a site-built
236	236	home on the same property in New Mexico that a taxpayer's prior
237	237	home was destroyed by a wildfire in calendar years 2021 through
238	238	2023, less any compensation related to home construction or
239	239	repair costs received pursuant to the federal Hermit's
240	240	Peak/Calf Canyon Fire Assistance Act; and
241	241	(3) "site-built home" means a home that is
242	242	constructed permanently on a taxpayer's property with a
243	243	foundation and that cannot be moved, and excludes a
244	244	manufactured or mobile home."
245	245	SECTION 2. DELAYED REPEAL.--Section 1 of this act is
246	246	repealed effective January 1, 2032.
247	247	SECTION 3. APPLICABILITY.--The provisions of this act
248	248	apply to taxable years beginning on or after January 1, 2025.
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