HB 77 New Mexico House · 2026 Regular Session

AFFORDABLE HOUSING REVITALIZATION TAX CREDIT

HB 77 creates a corporate income tax credit for businesses renovating vacant buildings or lots in New Mexico that have been unoccupied for at least two years. The credit covers 30% of renovation costs for properties vacant 2-5 years (capped at $2 million per business) or 40% for properties vacant 5+ years (capped at $4 million), provided at least 15% of new housing units are affordable for low/moderate income residents (defined as ≤85% of local median income). Businesses must get pre-certification before work begins and post-completion certification, with the credit being transferable or carry-forwardable for up to five years. The credit expires in 2038, has an annual spending limit of $100 million (with $50 million reserved for non-rural areas), and applies to projects starting in 2026.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 14, 2026 Last action Mar 24, 2026

Maddy AI version diff · 1 comparison

What changed between versions

introduced version → CE substitute · 8 edits

MODERATE

The bill was revised to add a new Section 2 that delays repeal of the affordable housing tax credit until January 1, 2038, and added Section 3 to clarify that the act applies to taxable years beginning on or after January 1, 2026. The core tax credit provisions were also modified to tighten eligibility requirements and add new definitions for key terms like 'abandoned building' and 'rural area'.

Scope change

The bill now explicitly defines its applicability to taxable years beginning on or after January 1, 2026, and establishes a delayed repeal date of January 1, 2038, extending the program's lifespan.

TIMELINE

Added Section 2 establishing a delayed repeal date of January 1, 2038, ensuring the tax credit program continues beyond its original expiration.

Added Section 3 clarifying that the act applies to taxable years beginning on or after January 1, 2026.

ELIGIBILITY

Modified eligibility requirements to require taxpayers to be qualifying grantees pursuant to the Affordable Housing Act, adding a new prerequisite for claiming the credit.

Changed the affordable housing requirement from at least fifteen percent of residential units to at least eighty percent of residential units developed.

DEFINITION

Added seven new definitions including 'abandoned building', 'affordable housing', 'low or moderate income', 'rehabilitation expenses', 'revitalization project', 'rural area', and 'vacant lot' to clarify program terms.

REQUIREMENT

Added new provisions allowing certificates of eligibility to be sold, exchanged, or transferred to another taxpayer, with notification requirements to the department.

ENFORCEMENT

Added requirement that the credit must be claimed on forms prescribed by the department within twelve months following the calendar year the certificate of eligibility was issued.

FISCAL

Added provision requiring the credit to be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the credit.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 2, 2026

Lower · Passed

DO NOT PASS, replaced with committee substitute

lower

Jan 22, 2026

Introduced

Sent to House Commerce & Economic Development Committee & House Taxation & Revenue Committee

lower

Jan 14, 2026

Introduced

Sent to House Pre-file

lower

4 primary · 0 co-sponsors