The NM Historic Preservation Division's Financial Incentive Programs

New Mexico State Income Tax Credit for Preservation of Cultural Properties

UPDATE: New application forms designed as fillable PDFs have replaced the older forms. Applicants may find those forms, in addition to application guidance and a sample application, below. The goal is for the new forms to help facilitate electronic submission.

Preservation tax credits have been used to rehabilitate over 1,000 historic properties in New Mexico.

Send applications to matt.saionz@dca.nm.gov and NM.SHPO@dca.nm.gov well before the submission deadlines, which occur 14 days prior to a meeting of the Cultural Properties Review Committee (CPRC). Applications received after a deadline for a particular CPRC meeting will be held for consideration at the next possible meeting. Please note that electronic submissions are strongly preferred.

Part 1 Application

Application Guidance

Part 1 Amendment Application

Sample Application

Part 2 Application

2025 Application Deadlines

About the Program

Since 1984, the New Mexico State Income Tax Credit for Preservation of Cultural Properties has been used in the rehabilitation of over 1,000 historic properties throughout the state. Administered by the New Mexico Historic Preservation Division (HPD), the 50% state income tax credit is available to owners of historic properties who complete qualified, pre-approved rehabilitations.

An introductory guide to the program is available here. Early consultation with HPD staff is highly recommended. In brief:

  • Eligible properties, which range from residential properties to income-producing buildings like apartments, offices, or stores, must be individually listed in the State Register of Cultural Properties or contributing to a listed historic district may participate. (Contact HPD to find out if your property meets this requirement.)
  • Project approval expires 24 months from the date of initial Part 1 approval, not the approval of any subsequent amendments.
  • The completed project and expenses are to be fully documented in the Part 2 application to enable the CPRC to certify the project as a qualified rehabilitation and establish the eligible expense/tax credit amounts.
  • The maximum amount of project expenses eligible for the 50% tax credit within a 24-month approval period is $50,000, although the total project cost may exceed this amount. Therefore, the maximum tax credit amount allowed within a 24-month approval period is $25,000. When a listed property is located within the boundaries of a state-certified Arts & Cultural District, the caps for eligible expenses and tax credit double to $100,000 and $50,000, respectively.
  • The credit is applied against New Mexico income tax owed in the year the project is completed, and any unused credit may be spread out (“carried forward”) over four additional years (unless used up sooner).
  • The credit is awarded to the property owner and may not be transferred to other parties. When more than one person owns the property, each is awarded credit according to their percentage of ownership.
  • The following are examples of work typically eligible for tax credit:
    • Major systems repair/replacement (HVAC, plumbing, electrical, etc.)
    • Roof replacement and repair of parapets, eaves, fascia, and canales/scuppers
    • Foundation and structural stabilization
    • Repairing windows and other character-defining historic features
    • Restoring historic trim and decorative elements
  • Examples of ineligible work include interior remodeling (including new furnishings, fixtures, and cabinetry), new construction or additions, landscaping, minor repairs, routine maintenance, and demolition.

Federal Historic Preservation Tax Incentives Program 

UPDATE:  As of August 15, 2023, all Federal Preservation Tax Incentives applications submitted to the State Historic Preservation Office (SHPO, aka NM Historic Preservation Division) and materials submitted to NPS in response to requests for additional information must be submitted electronically.  Hard copy applications are no longer accepted.  Please contact tax credit staff with questions about transmitting applications to the NM Historic Preservation Division:  

Matt Saionz

matt.saionz@dca.nm.gov   

505-827-4040

NM Historic Preservation Division

NM.SHPO@dca.nm.gov

505-827-6320

Historic Preservation Certification Application - Historic Preservation Tax Incentives (U.S. National Park Service) (nps.gov)

Many important rehabilitation projects around the state utilized the 20% Federal Historic Preservation Tax Incentives program to attract investment.  They include the Hotel Castañeda in Las Vegas, Albuquerque’s El Vado Auto Court, Simms Building, Hotel Parq Central, Hotel Andaluz, Luna Lodge and Old Albuquerque High School, as well as the Hotel Clovis, the Beimer House and Apple Tree building in Taos, the Plaza Hotel–Ilfeld buildings in Las Vegas, the Round Barn in Ojo Caliente, and Cook’s Hall in Raton.   

The National Park Service (NPS) administers the program in coordination with the NM Historic Preservation Division (HPD).  Participation is initiated with HPD in Santa Fe, and early consultation with our tax credit staff is highly recommended.  Comprehensive information about the program, including Federal application forms and instructions, guidance, on-line tutorials, and an IRS link are available at the National Park Service tax credit website.  

In brief:  

  • The buildings are income-producing properties and expenses for any portion used for a personal residence do not qualify for credit.  
  • The buildings are individually listed, or contribute to a historic district listed in the National Register of Historic Places or are in the process of being listing.  (Contact the Historic Preservation Division’s tax credit staff to find out if your property meets these requirements.)  
  • The program generally allows up to 20% of the eligible costs of rehabilitation work to be credited against Federal income taxes owed in a 5-year period beginning at project completion.  Some provisions of the Internal Revenue Code may affect a taxpayer's ability to utilize the full credit.  Applicants should seek professional tax advice concerning their specific circumstances.  
  • For Federal tax purposes, rehabilitations must be substantial (please see the NPS website, the Internal Revenue Code or your tax advisor).