PDF document

- 1 -

Rev 09/13/2016
NEW MEXICO TAXATION AND REVENUE DEPARTMENT
CIT-5QUALIFIED BUSINESS FACILITY REHABILITATION CREDIT
Name of owner Federal Employer Identification Number (FEIN) NM Business Tax Identifica-
tion Number (NMBTIN)

Physical address of property City / State / ZIP code

As provided by the New Mexico Economic Development Department (EDD), Enterprise Zone Program Officer:

Date of project approval: ___________________________ Project approval number: ________________________

Date of credit approval: ____________________________ Amount of credit approval: $ _____________________
If you are claiming the credit for more than one project, complete a separate Form CIT-5 for each.

Has credit for this project been claimed in any other taxable year? NO YES

If YES, indicate year(s) ______________________________

SCHEDULE A
If the property upon which the project is performed is a partnership, limited liability corporation, S corporation, joint venture
or similar business association, list each owner; the New Mexico Business Tax Identification Number (NMBTIN) (formally
the CRS identification number), social security number, or FEIN; and ownership percentage of each partner or member.

Name SSN FEIN Ownership Percentage

a. _____________________________________ ________________ ________________ __________________

b. _____________________________________ ________________ ________________ __________________

c. _____________________________________ ________________ ________________ __________________

d. _____________________________________ ________________ ________________ __________________

1. Project amount approved for the current tax year .................................................................. $ ___________________
2. Project amount approved in prior years ................................................................................. $ ___________________
3. Total amount approved for this project (The sum of lines 1 and 2) ........................................ $ ___________________
4. Multiply by .............................................................................................................................. 50%
5. Enter the product of line 3 x line 4 OR $50,000, whichever is less.
This is the maximum Qualified Business Facility Rehabilitation Credit available. ....................$ ___________________
6. Credit allowed for claimant. If applicable, multiply line 5 by the claimant's ownership
percentage from Schedule A above; otherwise, enter the amount from line 5. .................... $
7. Credit claimed by claimant in prior years for this project ....................................................... $ ___________________
8. Credit available to the claimant during the current tax year (Subtract line 7 from line 6) ...... $ ___________________
9. Credit applied to the current return. The credit applied may not exceed the amount of
New Mexico income tax (line 12, Form CIT-1 or line 4, Form S-Corp) .................................. $ ___________________
10. Credit available to the claimant for carryover (Subtract line 9 from line 8) ............................ $ ___________________

Unused credits may be carried forward for four consecutive years from the taxable year of the initial claim.

NOTE: Failure to attach this form and the approval from the New Mexico Enterprise Zone
Program Officer to your income tax return will result in denial of the credit claimed.

- 2 -

Rev 09/13/2016

NEW MEXICO TAXATION AND REVENUE DEPARTMENT
CIT-5
QUALIFIED BUSINESS FACILITY REHABILITATION CREDIT
INSTRUCTIONS
page 1

NOTE: This credit is not currently available. It was enacted struction services necessary to ensure that a building is in
in 1994 to administer the Federal Enterprise Zone Program compliance with applicable zoning codes, is safe for occu-
supporting the renovation and rehabilitation of damaged or pancy, and meets the operating needs of a person in the
destroyed structures in community areas designated as enter- manufacturing distribution or service industry; and expan-
prise zones. However, the Federal Enterprise Zone Program sion of or an addition to a building if the expansion or ad-
has been discontinued and after 2006, the New Mexico EDD dition does not increase the usable square footage of the
has listed the New Mexico Enterprise Zone Program as an building by more than 10% of the usable square footage of
inactive program. the building prior to the restoration, rehabilitation or renova-
tion project.
For more information on building revitalization programs in NOTE: No qualified business facility rehabilitation credit is
New Mexico, contact the New Mexico EDD at (505) 827-0300. allowed for cultural or historic properties nor for costs quali-
fying for credit under the Investment Credit Act.
ABOUT THIS CREDIT:
The credit for qualified business facility rehabilitation is 50% HOW TO COMPLETE THIS FORM: Complete all informa-
of the costs of a project for the restoration, rehabilitation or tion requested in the address block. Enter the date of the
renovation of qualified business facilities. Claims are limited project approval and the date of the credit approval. Also
to three consecutive years and shall not exceed $50,000. enter the project approval number and the amount of the
Any portion of the credit that remains unused at the end of credit approved.
the taxpayer's reporting period may be carried forward for
four consecutive years. Each claim for a qualified business Schedule A. Complete this section if the project is owned
facility rehabilitation credit must be accompanied by certifi- by one or more members/owners of a partnership, limited
cation from the New Mexico Enterprise Zone Program Of- liability corporation, S corporation, joint venture or similar
ficer. business association. If additional space is needed, attach
a separate page.
A taxpayer who files a New Mexico corporate income and
Line 1. Enter the amount of the project that was approved
franchise tax return or a sub-chapter S corporate income
for the current tax year.
and franchise tax return and who is the owner of a qualified
business facility may claim the credit. A member/owner of a Line 2. Enter the amount approved for the project in prior
partnership, LLC, S corporation, joint venture or similar busi- tax years, if applicable.
ness association that has qualified for the qualified business Line 3. Enter the sum of lines 1 and 2. This is the total
facility rehabilitation credit may claim the credit in proportion amount approved for this project.
to the taxpayer's interest in the business association. The
member/owner must complete Schedule A. Line 4. Multiply line 3 by 50%.
Line 5. Enter the product of line 3 x line 4 or $50,000
A taxpayer may claim this credit if: whichever is less.
1. the taxpayer submitted a plan and specifications for res- Line 6. Credit allowed for claimant. If applicable, multiply
toration, rehabilitation or renovation to the New Mexico line 5 by the claimant's ownership percentage from
Enterprise Zone Program Officer and received approval; Schedule A. If one or more members/owners of a
and partnership, limited liability corporation, S corpora-
2. the taxpayer received certification from the New Mexico tion, joint venture or similar business association
Enterprise Zone Program Officer after completing the own the property upon which the project is per-
restoration, rehabilitation or renovation that it conformed formed, the claimant may only claim an amount of
to the plan and specifications. a credit in proportion to the claimant's interest in the
business association. The claimant is the taxpayer
"Qualified business facility" means a building located in a
who is filing the New Mexico income tax return and
New Mexico enterprise zone that is suitable for use and is
claiming the credit on their return.
put into service by a person in the manufacturing, distribu-
tion or service industry immediately following the restoration, Line 7. Credit claimed by the claimant in prior years for this
rehabilitation or renovation project; provided, the building project. Enter the amount of credit claimed in previ-
must have been vacant for the 24-month period immediately ous years, for this project.
preceding the commencement of the restoration, rehabilita- Line 8. Credit available to the claimant during the current
tion or renovation project. tax year. Subtract line 7 from line 6.
"Restoration, rehabilitation or renovation" includes the con- Line 9. Credit applied to the current tax year. The credit

- 3 -

Rev 09/13/2016
                          
                           NEW MEXICO TAXATION AND REVENUE DEPARTMENT
CIT-5
                          QUALIFIED BUSINESS FACILITY REHABILITATION CREDIT
                                                 INSTRUCTIONS
                                                                                                   page 2                

       applied to the current tax year cannot exceed line        CONTACTS:  
       8 or the amount of New Mexico corporate income            Economic Development Department
       tax from Form CIT-1, line 12 or Form S-Corp, line  1100 So. St. Francis Drive, Suite 1060
       4.                                                        Santa Fe, NM 87502
Line 10.  Credit available to the claimant for carry forward to  (800) 374-3061 
       subsequent years. Subtract line 9 from line 8.             
                                                                 For information related to claiming the credit for qualified 
                                                                 business facility rehabilitation against corporate income tax, 
                                                                 contact:
NOTE: The amount of the credit to be applied to the current 
return is reported on Schedule CIT-CR or S-Corp-CR.              Taxation and Revenue Department 
                                                                 at (505) 827-0792 in Santa Fe, NM.
HOW TO APPLY FOR THIS CREDIT
A taxpayer may claim this credit by attaching a completed 
Form CIT-5 to the corporate income and franchise tax re-
turn or a sub-chapter S corporate income and franchise tax 
return for the current year, along with Schedule CIT-CR or 
S-Corp-CR.  Also  attach  the  approval  issued  by  the  New 
Mexico  Enterprise  Zone  Program  Officer  of  the  Economic 
Development Department. The claim must be submitted with 
the tax return for the year in which the restoration, rehabilita-
tion or renovation is carried out.  

NOTE: This credit is not currently available. It was enacted 
in 1994 to administer the Federal Enterprise Zone Program 
supporting the renovation and rehabilitation of damaged or 
destroyed structures in community areas designated as enter-
prise zones. However, the Federal Enterprise Zone Program 
has been discontinued and after 2006, the New Mexico EDD 
has listed the New Mexico Enterprise Zone Program as an 
inactive program.

For more information on building revitalization programs in 
New Mexico, contact the New Mexico EDD at (505) 827-0300. 

Mail the tax return and attachments to: New Mexico Taxation 
and Revenue Department, P.O. Box 25127, Santa Fe, NM  
87504-5127.  

      NOTE: Failure to attach this form and 
              the approval from the New Mexico 
                  Enterprise Zone 
              Program Officer to your income tax 
      return will result in denial of the credit 
                     claimed.

PDF file checksum: 1109934656

(Plugin #1/9.12/13.0)