New Mexico State Tax Benefit Information

In New Mexico, the donation of part or all of the value of a conservation easement may qualify the landowner for a tax credit against his or her New Mexico state income tax liability. Any portion of the tax credit which is not used in the year of the gift may be carried forward and used to offset a landowner’s New Mexico state income tax liability for up to 20 consecutive years until it is fully expended.

During the 2007 Legislative session, Governor Bill Richardson signed HB990 - Real Property Transfers Tax Credit into law. The Real Property Transfers Tax Credit, which is now in effect (January 1, 2008), expands the existing state tax credit currently allowed under the New Mexico Land Conservation Incentives Act for New Mexico taxpayers who donate land or easements for conservation purposes. The tax credit is 50% of the value of the donation, up to $250,000. But perhaps more importantly, the new legislation makes the tax credit transferable. To read more about the tax credit - click here.

The New Mexico Land Conservancy cannot provide tax and legal advice, and recommends that you consult with your own tax and legal advisors when considering placing your land into a conservation easement.