Form Pit-5 - Qualified Business Facility Rehabilitation Credit

2015 PIT-5

NEW MEXICO TAXATION AND REVENUE DEPARTMENT

Rev. 06/29/2015

QUALIFIED BUSINESS FACILITY REHABILITATION CREDIT

INSTRUCTIONS

page 1

ABOUT THIS CREDIT

must have been vacant for the 24-month period immediately

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

preceding the commencement of the restoration, rehabilita-

in 1994 to administer the Federal Enterprise Zone Program

tion or renovation project.

supporting the renovation and rehabilitation of damaged or

"Restoration, rehabilitation or renovation" includes the con-

destroyed structures in community areas designated as enter-

struction services necessary to ensure that a building is in

prise zones. However, the Federal Enterprise Zone Program

compliance with applicable zoning codes, is safe for occu-

has been discontinued and after 2006, the New Mexico EDD

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

has listed the New Mexico Enterprise Zone Program as an

manufacturing distribution or service industry; and expan-

inactive program.

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

dition does not increase the usable square footage of the

For more information on building revitalization programs in

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

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

the building prior to the restoration, rehabilitation or renova-

tion project.

The credit for qualified business facility rehabilitation is 50%

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

NOTE: No qualified business facility rehabilitation credit is

renovation of qualified business facilities. Claims are limited

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

allowed for cultural or historic properties nor for costs quali-

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

fying for credit under the Investment Credit Act.

the taxpayer's reporting period may be carried forward for

four consecutive years. Each claim for a qualified business

HOW TO COMPLETE THIS FORM

facility rehabilitation credit must be accompanied by certifi-

Complete all information requested in the address block. En-

cation from the New Mexico Enterprize Zone Program Of-

ter the date of the project approval and the date of the credit

ficer.

approval. Also, enter the project approval number and the

amount of the credit approved.

A taxpayer who files a New Mexico individual income tax

return and who is not a dependent of another individual and

Section A. Complete this section if the project is owned

who is the owner of a qualified business facility may claim

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

the credit. A member/owner of a partnership, LLC, S cor-

liability corporation, S corporation, joint venture or similar

poration, joint venture or similar business association that

business association. If additional space is needed, attach

has qualified for the qualified business facility rehabilitation

a separate page.

credit may claim the credit in proportion to the taxpayer's in-

Line 1.

Enter amount of the project that was approved for

terest in the business association. The member/owner must

the current tax year.

complete Section A.

Line 2.

Enter amount approved for the project in prior tax

A taxpayer may claim this credit if:

years, if applicable.

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

Line 3.

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

toration, rehabilitation or renovation to the New Mexico

amount approved for this project.

Enterprise Zone Program Officer and received approval,

Line 4.

Multiply line 3 by 50%.

and

Line 5.

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

2. the taxpayer received certification from the New Mexico

whichever is less.

Enterprise Zone Program Officer after completing the

restoration, rehabilitation or renovation that it conformed

Line 6.

Credit allowed for claimant. If applicable, multiply

to the plan and specifications.

line 5 by the claimant's ownership percentage from

Schedule A. If one or more members/owners of

Married individuals who file separate returns for a reporting

a partnership, limited liability corporation, S cor-

period in which they could have filed a joint return may each

poration, joint venture or similar business associa-

claim only one-half of the credit that would have been al-

tion own the property upon which the project is per-

lowed on a joint return.

formed, the claimant may only claim an amount of

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

"Qualified business facility" means a building located in a

business association. The claimant is the taxpayer

New Mexico enterprise zone that is suitable for use and is

who is filing the New Mexico income tax return and

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

claiming the credit on their return.

tion or service industry immediately following the restoration,

Line 7.

Credit claimed by the claimant in prior years for

rehabilitation or renovation project; provided, the building

Form Pit-5 - Qualified Business Facility Rehabilitation Credit - 2015 Page 2

Related Articles

Related forms

Related Categories