NM Sustainable Building Tax Credit

NM Sustainable Building Tax Credit

Offers New Mexico property owners credits for building and renovation projects that meet recognized green standards.

Eligibility · United States · US-NM

The New Mexico 2021 Sustainable Building Tax Credit is a tiered, transferable state tax credit authorized under NMSA 1978 §§7-2-18.32 (personal income) and 7-2A-28.1 (corporate income), administered jointly by the New Mexico Energy, Minerals and Natural Resources Department (EMNRD) Energy Conservation and Management Division and the New Mexico Taxation and Revenue Department (TRD). The program incentivizes construction and renovation of green-certified buildings in New Mexico by awarding a tax credit calculated on certification level and building square footage, with separate schedules for residential and commercial projects and a multiplier for affordable-housing developments. An annual statewide aggregate cap governs total credits issued on a first-come, first-served basis, with allocation managed through EMNRD certifications. The program is available until January 1, 2028, when the current statutory sunset applies; it replaced the 2015 Sustainable Building Tax Credit, which sunset December 31, 2024.

Eligible buildings must achieve green-building certification under a recognized programme such as LEED or Build Green New Mexico. Eligible applicants are broad — for-profit entities, nonprofits, universities, research organizations, and individuals may all claim the credit, provided the building is located in New Mexico and achieves the required certification. Credit amounts vary by certification tier and square footage per the EMNRD certification manual; unused credits may be carried forward for multiple years or transferred electronically via TRD's Taxpayer Access Point (TAP). The program is the successor to the 2015 credit, and buildings certified under that older program cannot use this 2021 statute for new claims.

The application process begins with EMNRD: the property owner or developer must obtain a sustainable-building certification from EMNRD's Energy Conservation and Management Division, which issues a certificate confirming the building meets program requirements. The taxpayer then attaches the EMNRD certificate to their New Mexico personal or corporate income tax return to claim the credit. Applicants requiring credit transfers should use TRD's Taxpayer Access Point. Contact TRD's Business Credit Manager at BusinessCredit.Mgr@tax.nm.gov for credit administration questions. Given the first-come, first-served statewide cap, early-year EMNRD certification submission is strategically advantageous.