Home Fire Recovery Income Tax Credit

How it works

The Home Fire Recovery Income Tax Credit lets eligible New Mexico taxpayers claim a state income tax credit after rebuilding or replacing a primary residence that was destroyed by wildfire. The official application page says the credit is based on qualified expenditures incurred to construct or manufacture a new home in place of the wildfire-damaged residence.

Once the application is reviewed and approved, the department issues a certificate of eligibility that the homeowner uses to claim the credit on a New Mexico state income tax return.

What the money covers

The official page says the credit applies to qualified expenditures for constructing or manufacturing a new home on the same property where the previous residence was destroyed. The page does not list every eligible expense item in the excerpt available, so only that construction/replacement purpose is stated here.

Amounts and matching

The headline amount is up to $50,000. The official page does not state a matching requirement.

How to apply

Applicants must complete the department’s application and provide documentation to verify eligibility, including proof of home destruction, construction expenses, and sworn statements.

Timing and deadlines

The application page says qualified home expenditures must be incurred beginning May 15, 2024 and before January 1, 2030. The residence must have been destroyed by wildfire during calendar years 2021 through 2023.