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Sustainable Building Tax Credit (Corporate)

Last Review: 2013-04-08
Incentive Type: Corporate Tax Credit
Eligible Efficiency Technologies: Comprehensive Measures/Whole Building, Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Daylighting
Applicable Sectors: Commercial
Incentive Amount: Varies based on the square footage of the building and the certification level
Expiration Date: 12/31/2016
Website: http://www.emnrd.state.nm.us/ECMD/CleanEnergyTaxIncentives/SBTC.html

Summary:

SB 463, enacted in April 2007, established a personal tax credit and a corporate tax credit for sustainable buildings in New Mexico. The tax credits apply to both commercial and residential buildings. Commercial buildings which have been registered and certified by the US Green Building Council at LEED Silver or higher for new construction (NC), existing buildings (EB), core and shell (CS), or commercial interiors (CI) are eligible for a tax credit. The amount of the credit varies according to the square footage of the building and the level of certification achieved, as indicated on the following chart:

Commercial Buildings:

LEED Rating Level Occupied Sq. Footage Tax Credit/Sq. Ft.
LEED-NC Silver First 10,000 $3.50
  Next 40,000 $1.75
  Over 50,000 and up to 500,000 $0.70
LEED-NC Gold First 10,000 $4.75
  Next 40,000 $2.00
  Over 50,000 and up to 500,000 $1.00
LEED-NC Platinum First 10,000 $6.25
  Next 40,000 $3.25
  Over 50,000 and up to 500,000 $2.00
LEED-EB/CS Silver First 10,000 $2.50
  Next 40,000 $1.25
  Over 50,000 and up to 500,000 $0.50
LEED-EB/CS Gold First 10,000 $3.35
  Next 40,000 $1.40
  Over 50,000 and up to 500,000 $0.70
LEED-EB/CS Platinum First 10,000 $4.40
  Next 40,000 $2.30
  Over 50,000 and up to 500,000 $1.40
LEED-CI Silver First 10,000 $1.40
  Next 40,000 $0.70
  Over 50,000 and up to 500,000 $0.30
LEED-CI Gold First 10,000 $1.90
  Next 40,000 $0.80
  Over 50,000 and up to 500,000 $0.40
LEED-CI Platinum First 10,000 $2.50
  Next 40,000 $1.30
  Over 50,000 and up to 500,000 $0.80



Residential buildings certified as sustainable homes can also qualify for a tax credit. Eligible residential buildings include single-family homes and multi-family homes which are certified as either Build Green NM Silver or higher, or LEED-H Silver or higher, and Energy Star certified manufactured homes. The amount of the credit varies according to the square footage of the building and the level of certification achieved, as indicated on the following chart:

Residential Buildings:

Rating Level Occupied Sq. Footage Tax Credit/Sq. Ft.
LEED-H Silver or Build Green NM Silver First 2,000 $5.00
  Next 1,000 $2.50
LEED-H Gold or Build Green NM Gold First 2,000 $6.85
  Next 1,000 $3.40
LEED-H Platinum or Build Green NM Emerald First 2,000 $9.00
  Next 1,000 $4.45
Energy Star Manufactured Home Up to 3,000 $3.00



To receive the tax credit, the building owner must obtain a certificate of eligibility from the Energy, Minerals and Natural Resources Department after the building project has been completed. The Department will only grant certificates in any given calendar year until the equivalent of $1,000,000 worth of certificates for commercial buildings and $4,000,000 worth of certificates for residential buildings have been awarded in that calendar year. Further, no more than $1,250,000 of the annual amount for residential buildings can be applied to manufactured housing. Multi-family residential buildings are classified as residential buildings for the purpose of this tax credit. However, if the aggregate limit for residential tax credits has been reached for the year, the Department may issue certificates of eligibility under the annual aggregate limit for commercial buildings to owners of multi-family dwelling units provided that aggregate limit has not been reached as well.

The taxpayer must then present their certificate of eligibility to the Taxation and Revenue Department to receive a document granting the Sustainable Building Tax Credit. If the total amount of a Sustainable Building Tax Credit is less than $100,000, a maximum of $25,000 can be applied to the taxpayer's income tax in that year and the next three years as needed depending on the amount of the credit. If the credit is more than $100,000, the taxpayer can claim the credit in increments of 25% in each of the four taxable years, including the year in which the credit is approved. If a taxpayer's tax liability is less than the amount of credit due, the excess credit may be carried forward for up to seven years.

SB 291 of 2009 made the tax credit transferable for nonprofits. Although nonprofits are not taxed by the state, they can apply for the certificate of eligibility and sell the credit to an entity that does pay taxes. Additionally, people and entities who do not owe enough taxes to take full advantage of the tax credit also have the option of selling the tax credit.

A solar thermal system or a photovoltaic system may not be used as a component of qualification for this tax credit if a tax credit has already been claimed for it under the Solar Market Development Tax Credit


Contact:
Public Information
New Mexico Taxation & Revenue Department
P.O. Box 630
1100 South St. Frances Dr
Santa Fe, NM 87504-0630
Phone:(505) 827-0369 Ext.
Phone 2:(505) 827-0700
Email: poffice@state.nm.us
Web site: http://www.tax.state.nm.us/

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