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 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.
A state tax credit is also available for donations made directly to the NM Affordable Housing Charitable Trust for affordable housing projects approved by the MFA.