New Mexico Affordable Housing Tax Credit

A state tax credit for up to 50 percent of the value of donations (cash, land, buildings or services) for affordable housing projects approved by the MFA or for donations made directly to the NM Affordable Housing Charitable Trust.

The Program

The New Mexico Affordable Housing Tax Credit program encourages private investment in affordable housing by providing donors to qualified housing developments with a credit on their state taxes. State tax credits provide a direct savings on income taxes, gross receipts taxes and compensating taxes (excluding local option gross receipts tax imposed by a municipality or county or the government gross receipts tax) to any eligible individual, business, and local or tribal government that makes a donation to an affordable housing development.  To use this tax incentive the donation must be made to an affordable housing development that has been approved by the MFA.  Once a project is approved and donations secured, investment vouchers are issued to the donors.

Donors receive investment vouchers for up to 50 percent of the value of the donation. Donations can be made by individuals, businesses and local governments with a minimum amount being $200.00 and the maximum $1,000,000.00.  The minimum tax benefit for a donor is $100.00 and the maximum benefit is $500,000.00.  Eligible donations may include land, buildings, cash or services which support the development of an approved affordable housing project. Supporting donations received by the project sponsor in exchange for tax credits may be used to fund acquisition, substantial rehabilitation and/or new construction of affordable housing projects throughout the state.

Eligible Projects

Affordable housing projects that qualify to participate in the New Mexico State Tax Credit program include the development of single family homes and multifamily rental housing located throughout New Mexico.