Donate Directly to Affordable Housing Developments and Receive State Tax Credits

Affordable Housing Donations

State tax credits are available to individuals and businesses that provide donations to help build affordable housing in New Mexico. The credit is equal to up to 50 percent of the value of the donation. Donations may include land, buildings, money, or services.

Donations may be made directly to an affordable housing development that has been approved by Housing New Mexico. The minimum donation is $200 and the maximum donation is $2 million.

Tax credits may be applied to state income tax, gross receipts tax and compensating tax burdens. Tax credits may not be applied to local option gross receipts taxes imposed by a municipality or county or to the government gross receipts tax.

Donations are made by donating directly to the developer. A voucher form will then be issued to receive the tax credits. Tax credits are claimed through the New Mexico Taxation and Revenue Department.

The entire tax credit or a fraction thereof may be redeemed the first year or may be carried forward for up to five years.