Form Cit-5 - Qualified Business Facility Rehabilitation Credit

Rev 09/13/2016

CIT-5

NEW MEXICO TAXATION AND REVENUE DEPARTMENT

QUALIFIED BUSINESS FACILITY REHABILITATION CREDIT

INSTRUCTIONS

page 1

NOTE: This credit is not currently available. It was enacted

struction services necessary to ensure that a building is in

in 1994 to administer the Federal Enterprise Zone Program

compliance with applicable zoning codes, is safe for occu-

supporting the renovation and rehabilitation of damaged or

pancy, and meets the operating needs of a person in the

destroyed structures in community areas designated as enter-

manufacturing distribution or service industry; and expan-

prise zones. However, the Federal Enterprise Zone Program

sion of or an addition to a building if the expansion or ad-

has been discontinued and after 2006, the New Mexico EDD

dition does not increase the usable square footage of the

has listed the New Mexico Enterprise Zone Program as an

building by more than 10% of the usable square footage of

inactive program.

the building prior to the restoration, rehabilitation or renova-

tion project.

For more information on building revitalization programs in

NOTE: No qualified business facility rehabilitation credit is

New Mexico, contact the New Mexico EDD at (505) 827-0300.

allowed for cultural or historic properties nor for costs quali-

fying for credit under the Investment Credit Act.

ABOUT THIS CREDIT:

The credit for qualified business facility rehabilitation is 50%

HOW TO COMPLETE THIS FORM: Complete all informa-

of the costs of a project for the restoration, rehabilitation or

tion requested in the address block. Enter the date of the

renovation of qualified business facilities. Claims are limited

project approval and the date of the credit approval. Also

to three consecutive years and shall not exceed $50,000.

enter the project approval number and the amount of the

Any portion of the credit that remains unused at the end of

credit approved.

the taxpayer's reporting period may be carried forward for

Schedule A. Complete this section if the project is owned

four consecutive years. Each claim for a qualified business

by one or more members/owners of a partnership, limited

facility rehabilitation credit must be accompanied by certifi-

liability corporation, S corporation, joint venture or similar

cation from the New Mexico Enterprise Zone Program Of-

business association. If additional space is needed, attach

ficer.

a separate page.

A taxpayer who files a New Mexico corporate income and

Line 1.

Enter the amount of the project that was approved

franchise tax return or a sub-chapter S corporate income

for the current tax year.

and franchise tax return and who is the owner of a qualified

Line 2.

Enter the amount approved for the project in prior

business facility may claim the credit. A member/owner of a

tax years, if applicable.

partnership, LLC, S corporation, joint venture or similar busi-

ness association that has qualified for the qualified business

Line 3.

Enter the sum of lines 1 and 2. This is the total

facility rehabilitation credit may claim the credit in proportion

amount approved for this project.

to the taxpayer's interest in the business association. The

Line 4.

Multiply line 3 by 50%.

member/owner must complete Schedule A.

Line 5.

Enter the product of line 3 x line 4 or $50,000

A taxpayer may claim this credit if:

whichever is less.

1. the taxpayer submitted a plan and specifications for res-

Line 6.

Credit allowed for claimant. If applicable, multiply

toration, rehabilitation or renovation to the New Mexico

line 5 by the claimant's ownership percentage from

Enterprise Zone Program Officer and received approval;

Schedule A. If one or more members/owners of a

and

partnership, limited liability corporation, S corpora-

2. the taxpayer received certification from the New Mexico

tion, joint venture or similar business association

Enterprise Zone Program Officer after completing the

own the property upon which the project is per-

restoration, rehabilitation or renovation that it conformed

formed, the claimant may only claim an amount of

to the plan and specifications.

a credit in proportion to the claimant's interest in the

business association. The claimant is the taxpayer

"Qualified business facility" means a building located in a

who is filing the New Mexico income tax return and

New Mexico enterprise zone that is suitable for use and is

claiming the credit on their return.

put into service by a person in the manufacturing, distribu-

Line 7.

Credit claimed by the claimant in prior years for this

tion or service industry immediately following the restoration,

project. Enter the amount of credit claimed in previ-

rehabilitation or renovation project; provided, the building

ous years, for this project.

must have been vacant for the 24-month period immediately

preceding the commencement of the restoration, rehabilita-

Line 8.

Credit available to the claimant during the current

tion or renovation project.

tax year. Subtract line 7 from line 6.

Line 9.

Credit applied to the current tax year. The credit

"Restoration, rehabilitation or renovation" includes the con-

Form Cit-5 - Qualified Business Facility Rehabilitation Credit - 2016 Page 2

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