Form Cit-5 - Qualified Business Facility Rehabilitation Credit

2015 CIT-5

NEW MEXICO TAXATION AND REVENUE DEPARTMENT

QUALIFIED BUSINESS FACILITY REHABILITATION CREDIT

Rev 06/29/2015

INSTRUCTIONS

page 1

ABOUT THIS CREDIT:

struction services necessary to ensure that a building is in

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

compliance with applicable zoning codes, is safe for occu-

in 1994 to administer the Federal Enterprise Zone Program

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

supporting the renovation and rehabilitation of damaged or

manufacturing distribution or service industry; and expan-

destroyed structures in community areas designated as enter-

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

prise zones. However, the Federal Enterprise Zone Program

dition does not increase the usable square footage of the

has been discontinued and after 2006, the New Mexico EDD

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

has listed the New Mexico Enterprise Zone Program as an

the building prior to the restoration, rehabilitation or renova-

inactive program.

tion project.

NOTE: No qualified business facility rehabilitation credit is

For more information on building revitalization programs in

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.

The credit for qualified business facility rehabilitation is 50%

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

HOW TO COMPLETE THIS FORM: Complete all informa-

renovation of qualified business facilities. Claims are limited

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

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

project approval and the date of the credit approval. Also

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

enter the project approval number and the amount of the

the taxpayer's reporting period may be carried forward for

credit approved.

four consecutive years. Each claim for a qualified business

facility rehabilitation credit must be accompanied by certifi-

Schedule A. Complete this section if the project is owned

cation from the New Mexico Enterprise Zone Program Of-

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

ficer.

liability corporation, S corporation, joint venture or similar

business association. If additional space is needed, attach

A taxpayer who files a New Mexico corporate income and

a separate page.

franchise tax return or a sub-chapter S corporate income

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

Line 1.

Enter the amount of the project that was approved

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

for the current tax year.

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

Line 2.

Enter the amount approved for the project in prior

ness association that has qualified for the qualified business

tax years, if applicable.

facility rehabilitation credit may claim the credit in proportion

Line 3.

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

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

amount approved for this project.

member/owner must complete Schedule A.

Line 4.

Multiply line 3 by 50%.

A taxpayer may claim this credit if:

Line 5.

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

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

whichever is less.

toration, rehabilitation or renovation to the New Mexico

Line 6.

Credit allowed for claimant. If applicable, multiply

Enterprise Zone Program Officer and received approval;

line 5 by the claimant's ownership percentage from

and

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

2. the taxpayer received certification from the New Mexico

partnership, limited liability corporation, S corpora-

Enterprise Zone Program Officer after completing the

tion, joint venture or similar business association

restoration, rehabilitation or renovation that it conformed

own the property upon which the project is per-

to the plan and specifications.

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,

rehabilitation or renovation project; provided, the building

Line 7.

Credit claimed by the claimant in prior years for this

must have been vacant for the 24-month period immediately

project. Enter the amount of credit claimed in previ-

preceding the commencement of the restoration, rehabilita-

ous years, for this project.

tion or renovation project.

Line 8.

Credit available to the claimant during the current

tax year. Subtract line 7 from line 6.

"Restoration, rehabilitation or renovation" includes the con-

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

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