The New Mexico Mortgage Finance Authority (MFA) has unveiled the State Tax Credit Program, a new initiative designed to bolster the construction of affordable housing across the state. The program offers state tax credits equivalent to 50% of the value of donations made by individuals and businesses.
Those wishing to support affordable housing through the New Mexico Affordable Housing Charitable Trust can do so by filling out a voucher form and submitting a check. According to MFA, tax credits can be claimed through the New Mexico Taxation and Revenue Department. Either MFA or the developer will then reach out to donors, provide a voucher for applicable tax credits, and process proof of donation for return. Donors may also qualify for a federal tax deduction, although consultation is recommended. Direct donations to developers in MFA-approved projects can include land, buildings, funds, or services. Contributions to the charitable trust managed by MFA can be in cash, stocks, or bonds, ranging from $200 to $2 million. However, it should be noted that the trust does not accept donations in the form of land, buildings or services. The program has already funded projects in various counties including Bernalillo, Doña Ana, McKinley, Otero, Rio Arriba, San Juan, Santa Fe, Socorro and Valencia.
Hernandez commented on this new initiative stating: "This program provides an opportunity to help New Mexicans realize their dreams of becoming homeowners," according to a press release by MFA. He further added: "It’s really a win-win as individuals or businesses also receive 50% of their donation back in the form of a tax credit from the state."
As an independent quasi-governmental organization committed to ensuring access to quality affordable housing and related services for low- and moderate-income residents of New Mexico. Using resources from housing bonds, tax credits and diverse federal and state agencies; MFA facilitates development of affordable rental communities; restoration of aging homes; provision of down payment assistance and affordable mortgages; provision of emergency shelter; and management of rental assistance and subsidies, as stated on the About webpage provided by MFA.