Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L    I M P A C T    R E P O R T

 

 

 

SPONSOR

Miera

DATE TYPED

1/30/04

HB

159

 

SHORT TITLE

Cultural Property Preservation Tax Credit

SB

 

 

 

ANALYST

Taylor

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

(25.0)

(100.0)

Recurring

General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

LFC Files

 

Response Received From

Taxation and Revenue Department

 

SUMMARY

 

House Bill 159 provides a personal income tax credit for taxpayers making a contribution to non-profit organizations, state government or local government for restoration, rehabilitation or preservation of cultural property listed on the official New Mexico register.  The credit is equal to one-half of the taxpayers contribution, but may not exceed $25 thousand.  Unused portions of the credit greater than $25 thousand may be carried forward for four consecutive years.

 

The bill is applicable to taxable years beginning on or after January 1, 2004.

 

FISCAL IMPLICATIONS

 

TRD reports that under similar credits in current statute, revenue losses were about $200 thousand in 2002, $330 thousand in 2001 and $262 thousand in 2000.  These credits were for taxpayer owned and restored properties, however.  They also note that taxpayers applying for a federal deduction for cultural property contributions would not be eligible.  Thus, they suggest the impact will likely be less, somewhere on the order of $100 thousand on a full year basis.    

 

ADMINISTRATIVE IMPLICATIONS

 

TRD reports modest administrative impacts that could be absorbed with existing resources.

 

OTHER SUBSTANTIVE ISSUES

 

TRD contributed the following issue:

 

Substantial state and federal tax benefits are currently available to individuals and institutions engaging in cultural property preservation. According to the New Mexico Office of Cultural Affairs, Historical Preservation Division website:[1]

 

In 2000, 33 owners of historic properties in New Mexico invested over $1,050,000 in rehabilitation and preservation projects across the state in the federal and state tax investment tax credit programs. With an average project cost of $28,375, an applicant could realize a tax credit of about $14,187 over 5 years.

 

 

BT/yr