The credit for qualified business facility rehabilitation is 50% of the costs of a project for the restoration, rehabilitation or renovation of qualified business facilities. Claims are limited to three consecutive years and shall not exceed $50,000. Any portion of the credit that remains unused at the end of the taxpayer's reporting period may be carried forward for four consecutive years. Each claim for a qualified business facility rehabilitation credit must be accompanied by certification from the New Mexico Enterprize Zone Program Officer.
A taxpayer who files a New Mexico individual income tax return and who is not a dependent of another individual and who is the owner of a qualified business facility may claim the credit. A member/owner of a partnership, LLC, S corporation, joint venture or similar business association that has qualified for the qualified business facility rehabilitation credit may claim the credit in proportion to the taxpayer's interest in the business association. The member/owner must complete Section A.
A taxpayer may claim this credit if:
1. the taxpayer submitted a plan and specifications for restoration, rehabilitation or renovation to the New Mexico Enterprise Zone Program Officer and received approval, and
2. the taxpayer received certification from the New Mexico Enterprise Zone Program Officer after completing the restoration, rehabilitation or renovation that it conformed to the plan and specifications.
A husband and wife who file separate returns for a reporting period 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. "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 24-month period immediately preceding the commencement of the restoration, rehabilitation or renovation project.
"Restoration, rehabilitation or renovation" includes 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 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 10% of the usable square footage of the building prior to the restoration,
rehabilitation or renovation project.
NOTE: No qualified business facility rehabilitation credit is allowed for cultural or historic properties nor for costs qualifying for credit under the Investment Credit Act.