SENATE BILL 440
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
Peter Wirth
AN ACT
RELATING TO TAXATION; PROVIDING FOR THE SALE, EXCHANGE OR TRANSFER OF INCOME TAX CREDIT THAT MAY BE CLAIMED FOR PRESERVATION OF CULTURAL PROPERTY; INCREASING THE CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-2-18.2 NMSA 1978 (being Laws 1984, Chapter 34, Section 1, as amended) is amended to read:
"7-2-18.2. CREDIT FOR PRESERVATION OF CULTURAL PROPERTY--[REFUND] PERSONAL INCOME TAX CREDIT.--
A. Tax credits for the preservation of cultural property may be claimed as follows:
(1) to encourage the restoration, rehabilitation and preservation of cultural properties, a taxpayer who files an individual New Mexico income tax return and who is not a dependent of another individual and who is the owner of a cultural property listed on the official New Mexico register of cultural properties, with the taxpayer's consent, may claim a credit not to exceed a maximum aggregate of [twenty-five thousand dollars ($25,000)] fifty thousand dollars ($50,000) in an amount equal to one-half of the cost of restoration, rehabilitation or preservation of a cultural property listed on the official New Mexico register; or
(2) if a cultural property, whose owner may otherwise claim the credit set forth in Paragraph (1) of this subsection is also located within an arts and cultural district certified by the state or a municipality pursuant to the Arts and Cultural District Act, the owner of that cultural property may claim a credit not to exceed [fifty thousand dollars ($50,000)] seventy-five thousand dollars ($75,000), including any credit claimed pursuant to Paragraph (1) of this subsection, in an amount equal to one-half of the cost of restoration, rehabilitation or preservation of the cultural property.
B. The taxpayer may claim the credit if:
(1) the taxpayer submitted a plan and specifications for restoration, rehabilitation or preservation to the committee and received approval from the committee for the plan and specifications prior to commencement of the restoration, rehabilitation or preservation;
(2) the taxpayer received certification from the committee after completing the restoration, rehabilitation or preservation, or committee-approved phase, that it conformed to the plan and specifications and preserved and maintained those qualities of the property that made it eligible for inclusion in the official register; and
(3) the project is completed within twenty-four months of the date the project is approved by the committee in accordance with Paragraph (1) of this subsection.
C. A taxpayer may claim the credit provided in this section for each taxable year in which restoration, rehabilitation or preservation is carried out. Except as provided in Subsection F of this section, claims for the credit provided in this section shall be limited to three consecutive years, and the maximum aggregate credit allowable shall not exceed [twenty-five thousand dollars ($25,000)] fifty thousand dollars ($50,000) if governed by Paragraph (1) of Subsection A of this section, or [fifty thousand dollars ($50,000)] seventy-five thousand dollars ($75,000) if governed by Paragraph (2) of Subsection A of this section, for any single restoration, rehabilitation or preservation project for any cultural property listed on the official New Mexico register certified by the committee.
D. A husband and wife who file separate returns for a taxable year 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.
E. A taxpayer who otherwise qualifies and claims a credit on a restoration, rehabilitation or preservation project on property owned by a partnership of which the taxpayer is a member may claim a credit only in proportion to the taxpayer's interest in the partnership. The total credit claimed by all members of the partnership shall not exceed [twenty-five thousand dollars ($25,000)] fifty thousand dollars ($50,000) in the aggregate if governed by Paragraph (1) of Subsection A of this section, or [fifty thousand dollars ($50,000)] seventy-five thousand dollars ($75,000) in the aggregate if governed by Paragraph (2) of Subsection A of this section, for any single restoration, rehabilitation or preservation project for any cultural property listed on the official New Mexico register certified by the committee.
F. The credit provided in this section may only be deducted from the taxpayer's income tax liability. Any portion of the maximum tax credit provided by this section that remains unused at the end of the taxpayer's taxable year may be carried forward for four consecutive years; provided, however, the total tax credits claimed under this section shall not exceed [twenty-five thousand dollars ($25,000)] fifty thousand dollars ($50,000) if governed by Paragraph (1) of Subsection A of this section, or [fifty thousand dollars ($50,000)] seventy-five thousand dollars ($75,000) if governed by Paragraph (2) of Subsection A of this section, for any single restoration, preservation or rehabilitation project for any cultural property listed on the official New Mexico register.
G. To receive a credit pursuant to this section, a person shall apply to the department on forms and in the manner prescribed by the department. The application shall include a certificate of eligibility issued by the committee pursuant to Subsection B of this section. If all of the requirements of this section have been complied with, the department shall issue to the applicant a document granting the tax credit. The document shall be numbered for identification and declare its date of issuance and the amount of the tax credit allowed for the preservation of cultural property pursuant to this section.
H. The tax credit represented by a document issued by the department pursuant to Subsection G of this section, or an increment of that tax credit, may be sold, exchanged or otherwise transferred and may be carried forward for a period of four taxable years following the taxable year in which the credit originated until fully expended. A tax credit or increment of a tax credit may be transferred only once. The credit may be transferred to any taxpayer. A taxpayer to whom a credit has been transferred may use the credit for the taxable year in which the transfer occurred and unused amounts may be carried forward to succeeding taxable years, but in no event may the transferred credit be used more than five years after it was originally issued.
I. A taxpayer who has transferred a tax credit issued pursuant to this section shall notify the department of the transfer and of the date of the transfer within thirty days of the transfer. Credits shall be transferred only in increments of three thousand dollars ($3,000) or more. The department shall keep an account of the credits.
[G.] J. The historic preservation division shall promulgate regulations for the implementation of Subsection B of this section.
[H.] K. As used in this section:
(1) "committee" means the cultural properties review committee created in Section 18-6-4 NMSA 1978; and
(2) "historic preservation division" means the historic preservation division of the cultural affairs department created in Section 18-6-8 NMSA 1978."
Section 2. Section 7-2A-8.6 NMSA 1978 (being Laws 1984, Chapter 34, Section 2, as amended) is amended to read:
"7-2A-8.6. CREDIT FOR PRESERVATION OF CULTURAL PROPERTY--CORPORATE INCOME TAX CREDIT.--
A. Tax credits for the preservation of cultural property may be claimed as follows:
(1) to encourage the restoration, rehabilitation and preservation of cultural properties, a taxpayer that files a corporate income tax return and that is the owner of a cultural property listed on the official New Mexico register of cultural properties, with its consent, may claim a credit not to exceed [twenty-five thousand dollars ($25,000)] one hundred twenty-five thousand dollars ($125,000) in an amount equal to [one-half] twenty percent of the cost of restoration, rehabilitation or preservation of the cultural property; or
(2) if a cultural property, whose owner may otherwise claim the credit set forth in Paragraph (1) of this subsection is also located within an arts and cultural district designated by the state or a municipality pursuant to the Arts and Cultural District Act, the owner of that cultural property may claim a credit not to exceed [fifty thousand dollars ($50,000)] two hundred fifty thousand dollars ($250,000), including any credit claimed pursuant to Paragraph (1) of this subsection, in an amount equal to [one-half] twenty percent of the cost of restoration, rehabilitation or preservation of the cultural property.
B. The taxpayer may claim the credit if:
(1) it submitted a plan and specifications for restoration, rehabilitation or preservation to the committee and received approval from the committee for the plan and specifications prior to commencement of the restoration, rehabilitation or preservation;
(2) it received certification from the committee after completing the restoration, rehabilitation or preservation, or committee-approved phase, that it conformed to the plan and specifications and preserved and maintained those qualities of the property that made it eligible for inclusion in the official register; and
(3) the project is completed within twenty-four months of the date the project is approved by the committee in accordance with Paragraph (1) of this subsection.
C. A taxpayer may claim the credit provided in this section for each taxable year in which preservation, restoration or rehabilitation is carried out. Claims for the credit provided in this section shall be limited to three consecutive years, and the maximum aggregate credit allowable shall not exceed [twenty-five thousand dollars ($25,000)] one hundred twenty-five thousand dollars ($125,000) if governed by Paragraph (1) of Subsection A of this section, or [fifty thousand dollars ($50,000)] two hundred fifty thousand dollars ($250,000) if governed by Paragraph (2) of Subsection A of this section, for any single restoration, rehabilitation or preservation project certified by the committee for any cultural property listed on the official New Mexico register. No single project may extend beyond a period of more than two years.
D. A taxpayer who otherwise qualifies and claims a credit on a restoration, rehabilitation or preservation project on property owned by a partnership of which the taxpayer is a member may claim a credit only in proportion to the taxpayer's interest in the partnership. The total credit claimed by all members of the partnership shall not exceed [twenty-five thousand dollars ($25,000)] one hundred twenty-five thousand dollars ($125,000) if governed by Paragraph (1) of Subsection A of this section, or [fifty thousand dollars ($50,000)] two hundred fifty thousand dollars ($250,000) if governed by Paragraph (2) of Subsection A of this section, in the aggregate for any single restoration, preservation or rehabilitation project for any cultural property listed on the official New Mexico register approved by the committee.
E. The credit provided in this section may only be deducted from the taxpayer's corporate income tax liability. Any portion of the maximum tax credit provided by this section that remains unused at the end of the taxpayer's taxable year may be carried forward for four consecutive years; provided, however, the total tax credits claimed under this section shall not exceed [twenty-five thousand dollars ($25,000)] one hundred twenty-five thousand dollars ($125,000) if governed by Paragraph (1) of Subsection A of this section, or [fifty thousand dollars ($50,000)] two hundred fifty thousand dollars ($250,000) if governed by Paragraph (2) of Subsection A of this section, for any single restoration, rehabilitation or preservation project for any cultural property listed on the official New Mexico register.
F. To receive a credit pursuant to this section, a taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include a certificate of eligibility issued by the committee pursuant to Subsection B of this section. If all of the requirements of this section have been complied with, the department shall issue to the applicant a document granting the tax credit. The document shall be numbered for identification and declare its date of issuance and the amount of the tax credit allowed for the preservation of cultural property pursuant to this section.
G. The tax credit represented by a document issued by the department pursuant to Subsection F of this section, or an increment of that tax credit, may be sold, exchanged or otherwise transferred and may be carried forward for a period of nineteen taxable years following the taxable year in which the credit originated until fully expended. A tax credit or increment of a tax credit may be transferred only once. The credit may be transferred to any corporate taxpayer. A taxpayer to whom a credit has been transferred may apply the credit against its corporate tax liability for the taxable year in which the transfer occurred and unused amounts may be carried forward to succeeding taxable years, but in no event may the transferred credit be used more than twenty years after it was originally issued.
H. A taxpayer who has transferred a tax credit issued pursuant to this section shall notify the department of the transfer and of the date of the transfer within thirty days of the transfer. Credits shall be transferred only in increments of three thousand dollars ($3,000) or more. The department shall keep an account of the credits.
[F.] I. The historic preservation division shall promulgate regulations for the implementation of this section.
[G.] J. As used in this section:
(1) "committee" means the cultural properties review committee created in Section 18-6-4 NMSA 1978; and
(2) "historic preservation division" means the historic preservation division of the cultural affairs department created in Section 18-6-8 NMSA 1978."
Section 3. APPLICABILITY.--The provisions of this act apply to tax credits claimed that are for the projects for preservation activity receiving written approval by the cultural properties review committee created in Section 18-6-4 NMSA 1978 on or after January 1, 2010.
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