Form Rpd-41327 - Sustainable Building Tax Credit Approval (Page 3 of 5) in pdf

State of New Mexico - Taxation and Revenue Department

RPD-41327

Rev. 10/23/2014

SUSTAINABLE BUILDING TAX CREDIT APPROVAL

Page 2 of 4

or other business association, the owner may pass the credit to

filed a joint return may each claim only one-half of the sustainable

its member(s), partners(s), shareholder(s), or beneficiary(ies)

building credit that would have been allowed on a joint return.

by completing Section II, and submitting a Form RPD-41327,

Sustainable Building Tax Credit Approval, for each member,

Effectiveness and Cost of Credit

partner, shareholder, or beneficiary. Members, partners, and

Beginning in 2015 and every five years thereafter, TRD presents

beneficiaries may claim a credit only in proportion to their interest

annual reports to the Revenue Stabilization and Tax Policy

in the partnership or association, and are issued an approval for

Committee and the Legislative Finance Committee with an

their portion of the credit. The total credit claimed in the aggregate

analysis of the effectiveness and cost of the tax credit, and

by all members, partners, and beneficiaries of the partnership

whether the tax credit is performing the purpose for which it

or other business association with respect to the sustainable

was created.

building shall not exceed the amount of the credit that could have

been claimed by a sole owner of the property. If TRD denies the

COMPLETING THE CREDIT APPROVAL FORM

approval request, Form RPD-41327 is returned to the building

Follow these instructions to complete each section of RPD-41327,

owner with an explanation.

Sustainable Building Tax Credit Approval.

Sale, Exchange, or Transfer of the Tax Credit

Section I. Complete the name block with the information for the

When a holder or owner receives TRD approval, the credit may

eligible building owner.

be sold, exchanged, or otherwise transferred. Form RPD-41342,

Notice of Transfer of Sustainable Building Tax Credit, must be

Required to receive the credit:

used to report to TRD a transfer of approved sustainable building

• Mark in box to certify the statement

tax credit to another taxpayer. Notice must be provided to TRD

• Owner’s signature and date of signature

within 10 days of a sale, exchange, or other transfer. TRD issues

• Certificate issued from EMNRD

the new holder an approval for the credit transfer, a new credit

number, and instructions for applying the credit to personal or

Section II. If the owner of the qualifying sustainable building is a

corporate income tax due.

partnership or other business association passing all or a portion

of the credit to a member, partner, shareholder, or beneficiary,

How You Can Apply the Approved Credit

complete this section. If there is more than one member, partner,

Holders or owners can apply the approved sustainable building

shareholder, or beneficiary, submit a Form RPD-41327 for each.

tax credit against their personal or corporate income tax liability

The building owner, and if applicable, the holder if transferred to

for the tax year subject to the rules described next. If the amount

a member, partner, shareholder or beneficiary, must certify that

of the credit available in a tax year exceeds the liability for that

the solar market development tax credit, pursuant to Section

tax year, holders or owners can carry forward the excess for up

7-2-18.14 NMSA 1978, has not and will not be claimed for any

to seven years.

solar thermal system or photovoltaic system installed in the

sustainable building as a component of qualification for the

Effective January 1, 2014, if the total approved amount of all

energy requirements or rating system certification level used

sustainable building tax credits in a tax year is:

in determining eligibility for the sustainable building tax credit.

• $100,000 or more, 25% of the total credit amount is applied

against the holder’s personal or corporate income tax liability

Required to receive the credit:

in the tax year in which the credit is approved, and 25% in

• Mark in box to certify the statement

each of the next three subsequent tax years.

• Holder’s signature and date of signature

• Less than $100,000, a maximum of $25,000 is applied against

the holder’s personal or corporate income tax liability for the

Section III. TRD completes this section of the form, approving,

tax year in which the credit is approved, and a maximum of

partially approving, or disapproving the sustainable building tax

$25,000 for the next three subsequent tax years as needed

credit.

until the total credit is applied.

Attach a copy of the certificate of eligibility issued by EMNRD

Prior to January 1, 2014, if the amount of the sustainable building

to RPD-41327, Sustainable Building Tax Credit Approval, and

tax credit represented by the TRD approval is $25,000 or more,

mail to: Taxation and Revenue Department, Edit Error, P.O. Box

the credit must be applied for the tax year in which the credit

5418, Santa Fe, NM 87502-5418. For assistance completing this

is approved and for the next three subsequent tax years, in

form, call (505) 476-0792.

increments of 25% of the total credit amount in each of the four

IMPORTANT DEFINITIONS

tax years. If the amount of the sustainable building tax credit

approved by TRD is less than $25,000, the entire amount of

Refer to the following definitions to understand the meanings of

the credit may be applied in the tax year in which the credit is

terms used in the sustainable building forms and instructions.

approved.

Build Green NM rating system means the certification

In all cases, you may carry forward any excess from a credit that

standards adopted by the Homebuilders Association of Central

has been applied for up to seven years. A husband and wife who

New Mexico.

file separate returns for a taxable year in which they could have

LEED means the most current Leadership in Energy and

Form Rpd-41327 - Sustainable Building Tax Credit Approval Page 3

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