SENATE BILL 239
51st legislature - STATE OF NEW MEXICO - first session, 2013
INTRODUCED BY
Pete Campos
AN ACT
RELATING TO TAXATION; PROVIDING A CREDIT AGAINST INCOME TAX LIABILITIES FOR THE RESTORATION, REHABILITATION OR PRESERVATION OF CULTURAL PROPERTY THAT IS AN ELIGIBLE PROPERTY SUBJECT TO THE MAIN STREET ACT.
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 TAX CREDIT--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 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 or is also an eligible property subject to the Main Street Act or is otherwise found, pursuant to rule of the main street revolving loan committee, to merit preservation pursuant to the Main Street Revolving Loan 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 for a cultural property restoration, rehabilitation or preservation project if:
(1) the taxpayer submitted a plan and specifications for a restoration, rehabilitation or preservation project to the committee and received approval from the committee for the plan and specifications prior to commencement of the [restoration, rehabilitation or preservation] project;
(2) the taxpayer received certification from the committee after completing the restoration, rehabilitation or preservation project, or committee-approved phase, that [it] the project or phase conformed to the plan and specifications and preserved and maintained those qualities of the property that made [it] the property eligible for inclusion in the official register; and
(3) the project is completed within twenty-four months of the date that 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) 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 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, that 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 department created in Section 18-6-8 NMSA 1978; and
(3) "main street revolving loan committee" means the main street revolving loan committee created in the Main Street Revolving Loan Act."
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) 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 or is also an eligible property subject to the Main Street Act or is otherwise found, pursuant to rule of the main street revolving loan committee, to merit preservation pursuant to the Main Street Revolving Loan 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 for a cultural property restoration, rehabilitation or preservation project if:
(1) it submitted a plan and specifications for a restoration, rehabilitation or preservation project to the committee and received approval from the committee for the plan and specifications prior to commencement of the [restoration, rehabilitation or preservation] project;
(2) it received certification from the committee after completing the restoration, rehabilitation or preservation project, or committee-approved phase, that [it] the project or phase conformed to the plan and specifications and preserved and maintained those qualities of the property that made [it] the property eligible for inclusion in the official register; and
(3) the project is completed within twenty-four months of the date that 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, 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, that 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; and
(3) "main street revolving loan committee" means the main street revolving loan committee created in the Main Street Revolving Loan Act."
SECTION 3. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2014.
SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2014.
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