HOME FIRE RECOVERY TAX CREDIT

HB 568 creates a New Mexico income tax credit for homeowners who lost their primary residence to wildfires between 2021 and 2023 and rebuilt on the same property. Eligible taxpayers can claim a credit equal to their actual construction costs (minus any federal wildfire aid received), requiring proof of the fire damage, rebuilding completion, and a builder's statement. Applications for certification must be submitted within 12 months of construction completion, with unused credit amounts allowed to carry forward for up to three years. The credit expires on January 1, 2031, and applies to tax years starting in 2025.