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

SPONSOR Garcia

DATE TYPED 2/15/05

HB

SHORT TITLE Preservation Tax Credit Study

SB 467

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$75.0

Non-Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Cultural Affairs Department (DCA)

SUMMARY

Synopsis of Bill

Senate Bill 467 appropriates $75,000 from the general fund in FY06 to the Historic Preservation

Division of the Cultural Affairs Department (DCA) to contract for an analysis of the economic

impact of the New Mexico income tax credit on preservation of cultural properties.

Significant Issues

DCA indicated SB467 would enable that agency to determine the economic and preservation

benefits to property owners and communities that have accrued since the income tax credit on

preservation program was initiated in 1984 and make recommendations for the future. The in-

come tax credit program is applicable to any site or structure listed in the State Register of Cul-

tural Properties individually or as a contributing structure in a State Register Historic District

owned by a New Mexico income tax paying entity. The credit is available to property owners

who incur expense for the restoration, rehabilitation, preservation, or work to meet code on a reg-

istered cultural property. The credit is 50 percent of the approved preservation expenditures up

to a maximum $25,000 credit per project.

Senate Bill 467 -- Page 2

FISCAL IMPLICATIONS

The appropriation of $75,000 contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the

general fund.

ADMINISTRATIVE IMPLICATIONS

DCA indicated SB467 would have administrative and staffing implications for HPD. The divi-

sion would request a small percentage of overall funding for administrative costs.

DH/yr