HOTEL RENOVATION TAX CREDIT

HB 506 creates two tax credits in New Mexico for hotel renovation projects: a 20% credit (or 30% for LEED-NC silver-certified projects) on qualifying costs for owners of existing hotels. The credit applies to renovations of at least 40% of guest rooms in hotels with 15+ rooms, excluding new construction, with minimum cost thresholds ($25,000-$40,000 depending on county size). Hotel owners must obtain pre-certification from the Tourism Department before starting work and final certification within one year of completion, with annual credits capped at $30 million. This directly affects hotel operators seeking to renovate existing properties, incentivizing upgrades while requiring environmental certification for the higher credit tier.