The Affordable Housing Tax Credit rewards the donation of land, buildings, cash or services to affordable housing projects approved by the New Mexico Mortgage Finance Authority.
NMSA Section 7-9I-1 (the “Affordable Housing Tax Credit Act”) provides a tax credit to individuals, businesses or local or tribal governments that express support for affordable housing through donations of cash, land, buildings or services. The New Mexico Mortgage Finance Authority (“MFA”), created to finance affordable housing for low and moderate income New Mexico residents, reviews and, where appropriate, approves vouchers equal to 50% of the value of the donations. The vouchers can be converted to a tax credit document and used by the donating taxpayer, or sold to another taxpayer.
Credits received under the Affordable Housing Tax Credit Act can offset personal or corporate income taxes, gross receipts taxes and, with certain exclusions, compensating taxes. Objectives of the housing development activities operated by MFA include a geographically-equitable distribution of funds throughout New Mexico as well as addressing housing production for special needs populations. Projects eligible for the tax credits include single family housing, or, in counties with populations under 100,000, multi-family housing.
The Affordable Housing Tax Credit has a five-year carryforward period and is fragmentable in any amount.