Form Rpd-41282 - Land Conservation Incentives Credit Instructions

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RPD-41282
State of New Mexico - Taxation & Revenue Department
Rev. 07/2007
Land Conservation Incentives Credit
Instructions
Page 1 of 2
About this credit: Beginning in tax year 2004, persons who
Completing Form RPD-41335, Land Conservation Incen-
donate land to private-nonprofit or public conservation agen-
tives Credit Application.
cies for conservation purposes may receive a personal or cor-
Complete the name and address block of the eligible donor.
porate income tax credit. The Energy, Minerals and Natural
The eligible donor is the taxpayer who applied for and received
Resources Department (EMNRD) certifies donations for eligi-
a certificate of eligibility from the Energy, Minerals and Natu-
bility when the purpose is for open space, natural resource or
ral Resources Department (EMNRD) for a qualified donation.
biodiversity conservation, agricultural preservation, or water-
Complete the next section if the taxpayer who receives certi-
shed or historic preservation, and the donation is uncondi-
fication of eligibility of the land conservation incentives credit
tional and in perpetuity. The credit equals 50% of the fair mar-
is a pass-through entity (Partnership, Sub-chapter S Corpo-
ket value of the land transferred up to $100,000 for donations
ration, LLC, Trust, etc.) and wishes to pass the credit through
made prior to January 1, 2008. A taxpayer may claim only
to its members, managers, partners, shareholders or benefi-
one tax credit per year. For a conveyance made on or after
ciaries. The pass-through entity must complete an applica-
January 1, 2008, the maximum amount for a donation
tion for each member, manager, partner, shareholder or ben-
increases to $250,000*. The credit claimed may not exceed
eficiary establishing the new holder and the proportion of credit
the amount of income tax due, and may be carried forward for
that each is eligible to claim. Sign and date the application
20 consecutive years following the date of the qualified dona-
and mail it to the Taxation and Revenue Department, PO Box
tion. Additionally, for a conveyance made on or after January
630, Santa Fe, New Mexico 87504-0630. For assistance com-
1, 2008, the credit may be sold, exchanged or otherwise trans-
pleting the return or status of the application, call (505) 476-
ferred in increments of $10,000 or more. Credits must be trans-
3683.
ferred by qualified intermediaries. A tax credit or increment of
the credit may only be sold, exchanged or transferred once.
Once the approved application is returned, the holder uses
The new holder may use the credit in the tax year in which
the claim form to apply the credits to its personal or corporate
the credit was sold, exchanged or transferred and may carry
income taxes.
forward unused credits to succeeding tax years to a maxi-
mum of 20 consecutive tax years following the tax year in
Completing Form RPD-41282, Land Conservation Incen-
which the original qualified donation occurred.
tives Credit Claim Form.
The holder completes Form RPD-41282, and attaches the
*New legislation passed in 2007, modifying the provisions of the land
form to its personal or corporate income tax return. Only a
conservation incentives credit.
holder registered with the Taxation and Revenue Department
To receive the credit, a taxpayer must apply for a certificate of
may claim the credit. The holder completes the address block.
eligibility from the EMNRD. After obtaining the certificate, the
The “Worksheet to calculate the unused credit avail-
taxpayer must apply for the credit to the Taxation and Rev-
able for carry forward.” Attach a separate schedule in
enue Department using Form RPD-41335, Land Conserva-
the same format if additional space is needed.
tion Incentives Credit Application. The certificate of eligibility
from the EMNRD must be attached to the application. If a
(a) Credit number. Enter the credit number for each land
transfer of the credit is requested, the transfer must be made
conservation incentives credit granted or transferred to the
through a qualified intermediary. The qualified intermediary
holder. The credit numbers are issued by the Taxation and
must notify the New Mexico Taxation and Revenue Depart-
Revenue Department. If all or a portion of the credit has been
ment of the transfer within 10 days of the transaction by com-
transferred to a new holder, the credit number will have a three
pleting Form RPD-41336, Notice of Transfer of Land Conser-
digit suffix issued by the qualified intermediary. The claim form
vation Incentives Credit. Notary is required.
must reference both numbers. Do not include any credit with
a “Date of qualified donation” that is more than 20 years prior
For information for obtaining the certificate of eligibility, con-
to the current tax year. The credit may be carried forward for a
tact the Energy, Minerals and Natural Resources Department’s
maximum of 20 consecutive tax years following the tax year
Forestry Division at (505) 476-3347.
in which the qualified donation occurred. The credit number
and date of qualified donation are found on the approved Form
A credit for land donated by a pass-through entity may be
RPD-41335, Land Conservation Incentives Credit Application,
claimed by either a pass-through tax entity, if the entity is the
granted by the Taxation and Revenue Department, or if trans-
taxpayer, or the member, manager, partner, shareholder or
ferred by the original donor, Form RPD-41336, Notice of Trans-
beneficiary in proportion to his interest in the entity, but only
fer of Land Conservation Incentives Credit.
when the income, deductions and tax liability pass through
(b) Credit amount granted. For each land conservation
the entity to the member, manager, partner, shareholder or
incentives credit listed in column (a), enter the amount of credit
beneficiary. Tax credits may not be claimed by both the entity
granted, as indicated on the approved Form RPD-41335, Land
and the member, manager, partner, shareholder or beneficiary
Conservation Incentives Credit Application, or the amount of
for the same donation.
land conservation incentives credit transferred from Form RPD-

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