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State of New Mexico - Taxation and Revenue Department

RPD-41319

Rev. 07/2011

AGRICULTURAL WATER CONSERVATION TAX CREDIT CLAIM FORM

INSTRUCTIONS

Page 1 of 2

A taxpayer may claim a credit against the taxpayer’s personal or corporate income tax liability for

About this Credit:

expenses incurred by the taxpayer for eligible improvements in irrigation systems or water management methods. The credit

may be claimed for the taxable year in which the expenses are incurred if the taxpayer:

in that year, owned or leased a water right appurtenant to the land on which an eligible improvement was made;

filed an individual New Mexico income tax return for that year;

in that year, was not a dependent of another individual; and

did not and will not take a tax credit for the same expense on a corporate or a personal income tax return.

The amount of the credit is 35% of eligible expenses incurred in calendar year 2008 and 50% of eligible expenses incurred

in subsequent years through December 31, 2012. The total credit allowed in a tax year may not exceed $10,000 per year

per taxpayer, for an eligible improvement in irrigation systems or water management methods on land in New Mexico that is

owned or leased by the taxpayer and used by the taxpayer to produce agricultural products; harvest or grow trees; or sustain

livestock. Credit not taken may be carried forward for five consecutive tax years following the year the eligible expenses

were incurred.

Co-owners of land on which eligible improvements are made may claim a pro-rata share of the credit based on the co-owner’s

ownership interest. Pass-through entities making eligible expenses may pass the credit through to their owners in proportion

to their share of ownership. The total of the credits allowed all co-owners, partners, or members may not exceed the amount

that would have been allowed a sole owner. A husband and wife who file separate returns for a taxable year in which they

could have filed a joint return may each claim only one-half of the credit that would have been allowed on a joint return.

Eligible improvement in irrigation systems or water management methods means an improvement that is:

made on or after January 1, 2008;

consistent and complies with a water conservation plan approved by the local soil and water conservation

district in which the improvement is located; and

primarily designed to substantially conserve water on land in New Mexico that is owned or leased by the taxpayer

and used by the taxpayer or the taxpayer’s lessee to:

(a)

produce agricultural products;

(b)

harvest or grow trees; or

(c)

sustain livestock.

Upon request, taxpayers claiming the credit may be required to provide documentary evidence of the amount of water

conserved during the period for which the credit is claimed. Water conserved due to improvements in irrigation systems or

water management methods and for which a credit is claimed shall not be subject to abandonment or forfeiture, nor shall

the conserved water be put to consumptive beneficial use.

To apply for the agricultural water conservation tax credit, obtain an application package from

Applying for the Credit:

the Soil and Water Conservation district which encompasses the land upon which the applicant is claiming an eligible im-

provement has occurred. To find your local Soil and Water Conservation district, visit

soil-and-water-conservation-program

or call (575) 646-2642.

Once the application is approved, the district will issue a certificate of eligibility. If more than one owner, partner or member

is entitled to the credit, each owner, partner or member will receive a separate certificate of eligibility. Upon receipt of a

certificate of eligibility, the owner, partner or member may claim the credit against their personal or corporate income tax by

attaching a completed Form RPD-41319, Agricultural Water Conservation Tax Credit Claim Form, and a copy of the certificate

of eligibility to the tax return for the tax year in which the credit is approved. If the amount of the credit exceeds the tax due,

the owner, partner or member may carry the excess forward for not more than five consecutive tax years.

Line Instructions for Completing Form RPD-41319, Agricultural Water Conservation Tax Credit

Enter the holder’s name and social security number or federal employer identification number. Complete

Claim Form:

Schedule A to compute total excess credit available for carry forward. Include in Schedule A, only credits that have been al-

lowed for a prior tax year, and that have a balance available for carry forward. Credits approved for the tax year of this claim

will be included on line 1 of this claim form.

Form Rpd-41319 - Agricultural Water Conservation Tax Credit Claim Form - State Of New Mexico Taxation And Revenue Department Page 2

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