Home Fire Recovery Tax Credit

How it works

The Home Fire Recovery Tax Credit is a New Mexico state income tax credit administered by the Regulation and Licensing Department. Homeowners who lost a primary residence to wildfire during calendar years 2021 through 2023 can apply if they incurred expenses to rebuild or replace the home on the same property.

If the application is approved, the department issues a certificate of eligibility. That certificate is then used to claim the tax credit on a New Mexico state income tax return.

What the money covers

The page says the credit is based on qualified expenditures incurred to construct or manufacture a new home in place of the wildfire-damaged residence. The application page also refers to expenses to rebuild or replace the home on the same property.

Amounts and matching

The credit is for up to $50,000. The page does not describe a matching requirement or a sliding scale beyond the maximum credit amount.

How to apply

Applicants must complete the Home Fire Recovery Income Tax Credit application and provide documentation to verify eligibility. The page specifically lists proof of home destruction, sworn statements from the taxpayer and builder, proof of expenditures for construction on the home, a Certificate of Occupancy, and a Final Inspection.

Timing and deadlines

Qualified home expenditures must be incurred beginning May 15, 2024 and before January 1, 2030. The destroyed primary residence must have been lost to wildfire during calendar years 2021 through 2023. The page also says the taxpayer must be certified by the department before claiming the credit.