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AN ACT

RELATING TO ECONOMIC DEVELOPMENT; ENACTING THE ARTS AND

CULTURAL DISTRICT ACT; PROVIDING FOR THE CREATION OF ARTS AND

CULTURAL DISTRICTS; PROVIDING FOR CULTURAL FACILITIES;

CREATING TAX CREDITS FOR PRESERVATION OF CULTURAL PROPERTIES;

MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. SHORT TITLE.--Sections 1 through 7 of this

act may be cited as the "Arts and Cultural District Act".

Section 2. DEFINITIONS.--As used in the Arts and

Cultural District Act:

A. "arts and cultural district" means a developed

district of public and private uses designated by the

commission or a municipality;

B. "commission" means the New Mexico arts

commission; and

C. "coordinator" means the person responsible for

coordinating the main street program pursuant to Subsection B

of Section 3-60B-3 NMSA 1978.

Section 3. MAIN STREET PROGRAM COORDINATOR--DUTIES.--

A. The coordinator shall:

(1) review and approve or reject

applications from municipalities, citizens and nonprofit

organizations to designate state-authorized arts and cultural

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districts pursuant to the Arts and Cultural District Act;

(2) administer and promote an application

process for the designation of state-authorized arts and

cultural districts;

(3) provide financial grants or contracts

for development of a state-authorized arts and cultural

district, including planning, designing, construction and

renovation costs; and

(4) develop policies and standards for the

designation of state-authorized arts and cultural districts

and for the declassification should a state-authorized arts

and cultural district not comply with the policies and

standards established by the commission as set forth in an

approved application.

B. The coordinator shall require annual reports

from each state-authorized arts and cultural district for

purposes of reviewing the activities of that district,

including the compliance of the district with the policies and

standards of the commission and with the conditions of an

approved application.

Section 4. ARTS AND CULTURAL DISTRICTS--CREATION.--

A. A state-authorized arts and cultural district

may be created by the municipality in which the proposed arts

and cultural district will be located only if the proposed

district is approved by the commission.

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B. A municipally authorized arts and cultural

district may be created by a municipality with a population

greater than fifty thousand in which the proposed arts and

cultural district will be located if the proposed district

meets the criteria set forth in Subsection C of this section.

C. An arts and cultural district shall:

(1) be in a geographically contiguous area

that ranges in size from a portion of a municipality to a

regional district with a special coherence;

(2) be distinguished by physical and

cultural resources that play a vital role in the life and

development, including economic and cultural development, of a

community;

(3) focus on a cultural compound, a major

art institution, art and entertainment businesses, an area

with arts and cultural activities or cultural or artisan

production; and

(4) be engaged in promotion, preservation

and educational aspects of the arts and culture of that locale

and contribute to the public through interpretive, educational

and recreational uses.

Section 5. STATE-AUTHORIZED DISTRICTS.--

A. The coordinator shall review applications

submitted by municipalities, citizens or nonprofit

organizations for the purpose of designating an arts and

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cultural district and make a recommendation to the commission

for action on each application. Citizens and nonprofit

organizations that submit an application shall include a

formal endorsement of the application by the municipal

government in which the proposed district is to be located.

B. After reviewing an application for the

designation of an arts and cultural district, the commission

shall approve or reject the application or send it back to the

applicant with a request for changes or additional

information.

C. The commission shall designate no more than

five arts and cultural districts in a calendar year. Rejected

applicants may re-apply without prejudice.

D. If the commission approves an application for

the designation of an arts and cultural district, it shall

notify the applicant in writing and shall specify the terms

and conditions of the commission's approval, including the

terms and conditions set forth in the application and as

modified by written agreement between the applicant and the

commission.

E. After the commission approves an application

for the designation of a state-authorized arts and cultural

district, the applicable municipality may pass a local

ordinance to establish the state-authorized arts and cultural

district pursuant to the terms and conditions specified in the

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approved application. Municipalities may administer arts and

cultural districts through a newly created local commission

with a specific mission to oversee the district subject to

review by the municipality.

Section 6. MUNICIPALLY AUTHORIZED DISTRICTS.--

Municipalities with a population greater than fifty thousand

that choose to authorize their own districts shall pass a

local ordinance stating minimum requirements for establishing

the arts and cultural district, and any municipally authorized

arts and cultural district shall meet the criteria contained

in Subsection C of Section 4 of the Arts and Cultural District

Act.

Section 7. ARTS AND CULTURAL DISTRICT FUND

ESTABLISHED.--The "arts and cultural district fund" is created

as a nonreverting fund in the state treasury. The fund

consists of appropriations, gifts, grants, donations and

bequests. The fund shall be administered by the cultural

affairs department, and money in the fund is appropriated to

the cultural affairs department to carry out the provisions of

the Arts and Cultural District Act. Money in the fund shall

be disbursed on warrants signed by the secretary of finance

and administration pursuant to vouchers signed by the

secretary of cultural affairs or the secretary's authorized

representative.

Section 8. Section 5-10-2 NMSA 1978 (being Laws 1993,

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Chapter 297, Section 2) is amended to read:

"5-10-2. FINDINGS AND PURPOSE OF ACT.--

A. The legislature finds that:

(1) development of the New Mexico economy is

vital to the well-being of the state and its residents;

(2) it is difficult for municipalities and

counties in New Mexico to attract and retain businesses

capable of enhancing the local and state economy without the

resources necessary to compete with other states and locales;

(3) municipalities and counties may need to

be able to provide land, buildings and infrastructure as a

tool for basic business growth and the introduction of basic

business ventures into the state;

(4) it is in the best interest of the state,

municipalities and counties to encourage local or regional

solutions to economic development; and

(5) the access to public resources needs to

be carefully controlled and managed for the continued and

future benefit of New Mexico citizens.

B. The purpose of the Local Economic Development

Act is to implement the provisions of the 1994 constitutional

amendment to Article 9, Section 14 of the constitution of

New Mexico to allow public support of economic development to

foster, promote and enhance local economic development efforts

while continuing to protect against the unauthorized use of

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public money and other public resources. Further, the purpose

of that act is to allow municipalities and counties to enter

into joint powers agreements to plan and support regional

economic development projects, including investments in arts

and cultural districts created pursuant to the Arts and

Cultural District Act."

Section 9. Section 5-10-3 NMSA 1978 (being Laws 1993,

Chapter 297, Section 3, as amended) is amended to read:

"5-10-3. DEFINITIONS.--As used in the Local Economic

Development Act:

A. "arts and cultural district" means a developed

district of public and private uses that is created pursuant

to the Arts and Cultural District Act;

B. "cultural facility" means a facility that is

owned by the state, a county, a municipality or a qualifying

entity that serves the public through preserving, educating

and promoting the arts and culture of a particular locale,

including theaters, museums, libraries, galleries, cultural

compounds, educational organizations, performing arts venues

and organizations, fine arts organizations, studios and media

laboratories and live-work housing facilities;

C. "department" means the economic development

department;

D. "economic development project" or "project"

means the provision of direct or indirect assistance to a

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qualifying entity by a local or regional government and

includes the purchase, lease, grant, construction,

reconstruction, improvement or other acquisition or conveyance

of land, buildings or other infrastructure; public works

improvements essential to the location or expansion of a

qualifying entity; payments for professional services

contracts necessary for local or regional governments to

implement a plan or project; the provision of direct loans or

grants for land, buildings or infrastructure; technical

assistance to cultural facilities; loan guarantees securing

the cost of land, buildings or infrastructure in an amount not

to exceed the revenue that may be derived from the municipal

infrastructure gross receipts tax or the county infrastructure

gross receipts tax; grants for public works infrastructure

improvements essential to the location or expansion of a

qualifying entity; grants or subsidies to cultural facilities;

purchase of land for a publicly held industrial park or a

publicly owned cultural facility; and the construction of a

building for use by a qualifying entity;

E. "governing body" means the city council, city

commission or board of trustees of a municipality or the board

of county commissioners of a county;

F. "local government" means a municipality or

county;

G. "municipality" means an incorporated city, town

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or village;

H. "person" means an individual, corporation,

association, partnership or other legal entity;

I. "qualifying entity" means a corporation,

limited liability company, partnership, joint venture,

syndicate, association or other person that is one or a

combination of two or more of the following:

(1) an industry for the manufacturing,

processing or assembling of agricultural or manufactured

products;

(2) a commercial enterprise for storing,

warehousing, distributing or selling products of agriculture,

mining or industry, but, other than as provided in Paragraph

(5) or (6) of this subsection, not including any enterprise

for sale of goods or commodities at retail or for distribution

to the public of electricity, gas, water or telephone or other

services commonly classified as public utilities;

(3) a business in which all or part of the

activities of the business involves the supplying of services

to the general public or to governmental agencies or to a

specific industry or customer, but, other than as provided in

Paragraph (5) of this subsection, not including businesses

primarily engaged in the sale of goods or commodities at

retail;

(4) an Indian nation, tribe or pueblo or a

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federally chartered tribal corporation;

(5) a telecommunications sales enterprise

that makes the majority of its sales to persons outside

New Mexico;

(6) a facility for the direct sales by

growers of agricultural products, commonly known as farmers'

markets;

(7) a business that is the developer of a

metropolitan redevelopment project; and

(8) a cultural facility; and

J. "regional government" means any combination of

municipalities and counties that enter into a joint powers

agreement to provide for economic development projects

pursuant to a plan adopted by all parties to the joint powers

agreement."

Section 10. Section 5-10-4 NMSA 1978 (being Laws 1993,

Chapter 297, Section 4, as amended) is amended to read:

"5-10-4. ECONOMIC DEVELOPMENT PROJECTS--RESTRICTIONS ON

PUBLIC EXPENDITURES OR PLEDGES OF CREDIT.--

A. No local or regional government shall provide

public support for economic development projects as permitted

pursuant to Article 9, Section 14 of the constitution of

New Mexico except as provided in the Local Economic

Development Act or as otherwise permitted by law.

B. The total amount of public money expended and

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the value of credit pledged in the fiscal year in which that

money is expended by a local government for economic

development projects pursuant to Article 9, Section 14 of the

constitution of New Mexico and the Local Economic Development

Act shall not exceed five percent of the annual general fund

expenditures of the local government in that fiscal year. The

limits of this subsection shall not apply to:

(1) the value of any land or building

contributed to any project pursuant to a project participation

agreement;

(2) revenue generated through the imposition

of the municipal infrastructure gross receipts tax pursuant to

the Municipal Local Option Gross Receipts Taxes Act for

furthering or implementing economic development plans and

projects as defined in the Local Economic Development Act or

projects as defined in the Statewide Economic Development

Finance Act; provided that no more than the greater of fifty

thousand dollars ($50,000) or ten percent of the revenue

collected shall be used for promotion and administration of or

professional services contracts related to the implementation

of any such economic development plan adopted by the governing

body;

(3) revenue generated through the imposition

of a county infrastructure gross receipts tax pursuant to the

County Local Option Gross Receipts Taxes Act for furthering or

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implementing economic development plans and projects as

defined in the Local Economic Development Act or projects as

defined in the Statewide Economic Development Finance Act;

provided that no more than the greater of fifty thousand

dollars ($50,000) or ten percent of the revenue collected

shall be used for promotion and administration of or

professional services contracts related to the implementation

of any such economic development plan adopted by the governing

body;

(4) the proceeds of a revenue bond issue to

which municipal infrastructure gross receipts tax revenue is

pledged;

(5) the proceeds of a revenue bond issue to

which county infrastructure gross receipts tax revenue is

pledged; or

(6) funds donated by private entities to be

used for defraying the cost of a project.

C. A regional or local government that generates

revenue for economic development projects to which the limits

of Subsection B of this section do not apply shall create an

economic development fund into which such revenues shall be

deposited. The economic development fund and income from the

economic development fund shall be deposited as provided by

law. Money in the economic development fund may be expended

only as provided in the Local Economic Development Act or the

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Statewide Economic Development Finance Act.

D. In order to expend money from an economic

development fund for arts and cultural district purposes or

cultural facilities, the governing body of a municipality or

county that has imposed a municipal or county local option

infrastructure gross receipts tax for furthering or

implementing economic development plans and projects, as

defined in the Local Economic Development Act, or projects, as

defined in the Statewide Economic Development Finance Act, by

referendum of the majority of the voters voting on the

question approving the ordinance imposing the municipal or

county infrastructure gross receipts tax before June 30, 2007

shall be required to adopt a resolution. The resolution shall

call for an election to approve arts and cultural districts as

a qualifying purpose and cultural facilities as a qualifying

entity before any revenue generated by the municipal or county

local option gross receipts tax for furthering or implementing

economic development plans and projects, as defined in the

Local Economic Development Act, or projects, as defined in the

Statewide Economic Development Finance Act, can be expended

from the economic development fund for arts and cultural

district purposes or cultural facilities.

E. The governing body shall adopt a resolution

calling for an election within seventy-five days of the date

the ordinance is adopted on the question of approving arts and

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cultural districts as a qualifying purpose and cultural

facilities as a qualifying entity eligible to utilize revenue

generated by the Municipal Local Option Gross Receipts Taxes

Act or the County Local Option Gross Receipts Taxes Act for

furthering or implementing economic development plans and

projects as defined in the Local Economic Development Act or

projects as defined in the Statewide Economic Development

Finance Act.

F. The question shall be submitted to the voters

of the municipality or county as a separate question at a

regular municipal or county election or at a special election

called for that purpose by the governing body. A special

municipal election shall be called, conducted and canvassed as

provided in the Municipal Election Code. A special county

election shall be called, conducted and canvassed in

substantially the same manner as provided by law for general

elections.

G. If a majority of the voters voting on the

question approves the ordinance adding arts and cultural

districts and cultural facilities as an approved use of the

local option municipal or county economic development

infrastructure gross receipts tax fund, the ordinance shall

become effective on July 1 or January 1, whichever date occurs

first after the expiration of three months from the date of

the adopted ordinance. The ordinance shall include the

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effective date."

Section 11. Section 5-10-5 NMSA 1978 (being Laws 1993,

Chapter 297, Section 5) is amended to read:

"5-10-5. ECONOMIC DEVELOPMENT DEPARTMENT--TECHNICAL

ASSISTANCE.--At the request of a local or regional government,

the department shall provide technical assistance in the

development of an economic development plan or economic

development project or technical assistance to cultural

facilities with respect to economic development projects."

Section 12. Section 5-10-6 NMSA 1978 (being Laws 1993,

Chapter 297, Section 6, as amended) is amended to read:

"5-10-6. ECONOMIC DEVELOPMENT PLAN--CONTENTS--

PUBLICATION.--

A. Every local or regional government seeking to

pursue economic development projects shall adopt an economic

development plan or a comprehensive plan that includes an

economic development component, and an economic development

plan or comprehensive plan may include an analysis of the role

of arts and cultural activities in economic development. The

plan may be specific to a single economic development goal or

strategy or may include several goals or strategies, including

any goals or strategies relating to economic development

through arts and cultural activities. Any plan or plan

amendment shall be adopted by ordinance of the governing body

of the local government or each local government of a regional

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government proposing the plan or plan amendment.

B. The economic development plan or the ordinance

adopting the plan may:

(1) describe the local or regional

government's economic development and community goals,

including any economic development goals with an arts and

cultural component, and assign priority to and strategies for

achieving those goals;

(2) describe the types of qualifying

entities and economic activities that will qualify for

economic development projects;

(3) describe the criteria to be used to

determine eligibility of an economic development project and a

qualifying entity to participate in an economic development

project;

(4) describe the manner in which a

qualifying entity may submit an economic development project

application, including the type of information required from

the qualifying entity sufficient to ensure its solvency and

ability to perform its contractual obligations, its commitment

to remain in the community and its commitment to the stated

economic development goals of the local or regional

government;

(5) describe the process the local or

regional government will use to verify the information

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submitted on an economic development project application;

(6) if an economic development project is

determined to be unsuccessful or if a qualifying entity seeks

to leave the area, describe the methods the local or regional

government will use to terminate its economic assistance and

recoup its investment;

(7) identify revenue sources, including

those of the local or regional government, that will be used

to support economic development projects;

(8) identify other resources the local or

regional government is prepared to offer qualifying entities,

including specific land or buildings it is willing to lease,

sell or grant a qualifying entity; community infrastructure it

is willing to build, extend or expand, including roads, water,

sewers or other utilities; and professional services contracts

by local or regional governments necessary to provide these

resources;

(9) detail the minimum benefit the local or

regional government requires from a qualifying entity,

including the number and types of jobs to be created; the

proposed payroll; repayment of loans, if any; purchase by the

qualifying entity of local or regional government-provided

land, buildings or infrastructure; the public to private

investment ratio; and direct local tax base expansion;

(10) describe the safeguards of public

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resources that will be ensured, including specific ways the

local or regional government can recover any costs, land,

buildings or other thing of value if a qualifying entity

ceases operation, relocates or otherwise defaults or reneges

on its contractual or implied obligations to the local or

regional government; and

(11) if a regional government, describe the

joint powers agreement, including whether it can be terminated

and, if so, how the contractual or other obligations, risks

and any property will be assigned or divided among the local

governments who are party to the agreement.

C. The economic development plan shall be printed

and made available to the residents within the local or

regional government area."

Section 13. Section 5-10-9 NMSA 1978 (being Laws 1993,

Chapter 297, Section 9) is amended to read:

"5-10-9. PROJECT EVALUATION--DEPARTMENT.--

A. The local or regional government shall review

each project application, and projects shall be approved by

ordinance.

B. The local or regional government's evaluation

of an application shall be based on the provisions of the

economic development plan, the financial and management

stability of the qualifying entity, the demonstrated

commitment of the qualifying entity to the community, a cost-

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benefit analysis of the project and any other information the

local or regional government believes is necessary for a full

review of the economic development project application.

C. The local or regional government may negotiate

with a qualifying entity on the type or amount of assistance

to be provided or on the scope of the economic development

project."

Section 14. Section 7-2-18.2 NMSA 1978 (being Laws

1984, Chapter 34, Section 1) is amended to read:

"7-2-18.2. CREDIT FOR PRESERVATION OF CULTURAL

PROPERTY--REFUND.--

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) 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

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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), 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

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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) if

governed by Paragraph (1) of Subsection A of this section, or

fifty thousand dollars ($50,000) 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) in the aggregate if

governed by Paragraph (1) of Subsection A of this section, or

fifty thousand dollars ($50,000) in the aggregate if governed

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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) if

governed by Paragraph (1) of Subsection A of this section, or

fifty thousand dollars ($50,000) 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. The historic preservation division shall

promulgate regulations for the implementation of Subsection B

of this section.

H. 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

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department created in Section 18-6-8 NMSA 1978."

Section 15. 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) in an amount equal to one-half 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), 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

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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) if

governed by Paragraph (1) of Subsection A of this section, or

fifty thousand dollars ($50,000) if governed by Paragraph (2)

of Subsection A of this section, for any single restoration,

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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) if governed by

Paragraph (1) of Subsection A of this section, or fifty

thousand dollars ($50,000) 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) if

governed by Paragraph (1) of Subsection A of this section, or

fifty thousand dollars ($50,000) 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. The historic preservation division shall

promulgate regulations for the implementation of this section.

G. 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 16. APPLICABILITY.--The provisions of this act

shall apply to taxable years beginning on or after January 1,

2009.

Section 17. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2007.

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