New Mexico Sustainable Building Tax Credit Approval

Sustainable Building Tax Credit Approval
Form RPD-41327
RPD-41327
Rev. 04/11/2016

State of New Mexico - Taxation and Revenue Department
SUSTAINABLE BUILDING TAX CREDIT APPROVAL

Purpose of This Form. This form is required to be completed and submitted to the Taxation and Revenue Department to obtain approval
for the sustainable building tax credit. After approval, this form is returned to the owner or the holder who may begin claiming the credit.
Complete Section I and, if applicable, Section II. Mark the box to certify the statement, sign, date, and attach a copy of the certificate of eligibility for the Sustainable Building Tax Credit issued by the New Mexico Energy, Minerals and Natural Resources Department (EMNRD).
Mail to New Mexico Taxation and Revenue Department, Edit Error, P.O. Box 5418, Santa Fe, NM 87502-5418. For assistance completing
this form, call (505) 827-0792.
Social security number or federal employer identification number

Name of owner of the qualifying sustainable building
Mailing address

City, state and ZIP code

Phone number

SECTION I

Name of contact

Email address

Certified statement of the building owner:
	
Mark the box to certify this statement and receive this credit. I certify that I have not and will not claim the solar market

development tax credit, pursuant to Section 7-2-18.14 NMSA 1978, for any solar thermal system or photovoltaic system installed in
the sustainable building that was used as a component for qualification for the energy requirements or rating system certification
level used in determining eligibility for the sustainable building tax credit for which I have been approved.

Under penalty of perjury, I certify that I have examined this form and attachments, and to the best of my knowledge and
belief it is true, correct, and complete. I have also marked the box above to certify the statement and receive the credit.
Date

Signature of building owner

Holder, if other than eligible building owner. If the qualifying sustainable building is owned by a partnership or other busi-

ness association the owner may pass the credit to its member(s), partners(s), shareholder(s), or beneficiary(ies) by completing
Section II, and submitting a Form RPD-41327, Sustainable Building Tax Credit Approval, for each member, partner, shareholder,
or beneficiary. Members, partners, shareholders, and beneficiaries may claim a credit only in proportion to their interest in the
partnership or other business association, and will be issued an approval for their portion of the credit.
Social security number or federal employer identification number

SECTION II

Name of holder if other than building owner
Mailing address
Name of contact

City, state, and ZIP code
Phone number

Percentage of ownership interest in the
partnership or other business association

Certified statement of the holder, if other than building owner:
	
Mark the box to certify this statement and receive this credit. I certify that I have not and will not claim the solar market
development tax credit pursuant to Section 7-2-18.14 NMSA 1978, for any solar thermal system or photovoltaic system installed
in the sustainable building that was used as a component of qualification for the energy requirements or rating system certification
level used in determining eligibility for the sustainable building tax credit for which I have been approved.

Under penalty of perjury, I certify that I have examined this form and attachments, and to the best of my knowledge and
belief it is true, correct and complete. I have also marked the box above to certify the statement and receive the credit.
Date

Signature of holder, if other than building owner

SECTION III

Credit number:

TO BE COMPLETED BY THE TAXATION AND REVENUE DEPARTMENT
First eligible tax year:
Approved amount of sustainable building tax credit:

Sustainable building tax credit is approved as submitted.
Sustainable building tax credit is not approved. See the attached explanation.
Sustainable building tax credit is approved, but the amount of the credit has been adjusted. See the attached
explanation.
Signature of Secretary or authorized delegate: __________________________	
Name (please print):_____________________________________	

Date: ____________________

Title: _______________________________

RPD-41327
Rev. 04/11/2016

State of New Mexico - Taxation and Revenue Department
SUSTAINABLE BUILDING TAX CREDIT APPROVAL

ABOUT THIS CREDIT

The purpose of the sustainable building tax credit is
to encourage the construction of sustainable buildings
and the renovation of existing buildings into sustainable
buildings. For tax years ending on or before December 31,
2016, the sustainable building tax credit is available for the
construction in New Mexico of a sustainable building, for
the renovation of an existing building in New Mexico into
a sustainable building, or for the permanent installation of
manufactured housing in New Mexico, regardless of where
the housing is manufactured, that is a sustainable building.
For tax years beginning on or after January 1, 2017,
but ending on or before December 31, 2026, the new
sustainable building tax credit is available for the
construction in New Mexico of a sustainable building,
the renovation of an existing building in New Mexico into
a sustainable building, or for the permanent installation
of manufactured housing in New Mexico, regardless of
where the housing is manufactured, that is a sustainable
building. See From RPD-41382, New Sustainable Building
Tax Credit Approval, for details.
The credit is available to the building owner of residential
and commercial buildings, after the construction,
installation, or renovation of the sustainable building is
complete. To be eligible, the building owner must obtain a
certificate of eligibility issued by the Energy, Minerals and
Natural Resources Department (EMNRD), and then obtain
approval from the New Mexico Taxation and Revenue
Department (TRD). To claim the credit, the taxpayer must
submit TRD-approval with the taxpayer’s income tax return.
To qualify for the sustainable building tax credit, the building
must have achieved a silver or higher certification level as
described next.
For Sustainable Commercial Buildings
The credit calculation is based on the certification level the
building achieved in the LEED green building rating system
and the amount of qualified occupied square footage in the
building. See the commercial building rate chart on the last
page of these instructions.
For Sustainable Residential Buildings
The credit calculation is based on the LEED-H or the Build
Green NM rating system certification level and the amount
of qualified occupied square footage in the building.
Manufactured housing must meet the rating system
levels set by the United States Environmental Protection
Agency for ENERGY STAR-certified manufactured homes.
See the residential building rate chart on the last page of

Page 1 of 5

these instructions.
Installation of a solar thermal system or a photovoltaic
system eligible for the solar market development tax
credit pursuant to Section 7-2-18.14 NMSA 1978, may
not be used as a component of qualification for the rating
system certification level used in determining eligibility for
the sustainable building tax credit, unless a solar market
development tax credit has not been claimed with respect
to that system and the building owner and the taxpayer
claiming the sustainable building tax credit certify that such
a tax credit will not be claimed with respect to that system.
Obtaining the Certificate of Eligibility
The owner of the building must first obtain a certificate
of eligibility for the sustainable building tax credit from
EMNRD after the construction, installation, or renovation
of sustainable building is complete. EMNRD determines
whether the building meets the requirements as a
sustainable residential or sustainable commercial building
and verifies the certification level awarded for the building.
If approved, EMNRD issues the building owner a certificate
of eligibility. The certificate includes the rating system
certification level awarded to the building, the amount of
qualified occupied square footage in the building, and a
calculation of the maximum amount of sustainable building
tax credit for which the building owner is eligible. The
certificate also includes the first eligible tax year that the
allowable credit can be claimed.
If the certification level for a sustainable residential building
is awarded on or after January 1, 2007, EMNRD may issue
a certificate of eligibility to a building owner who is:
(1)	 the owner of the sustainable residential building at the
time the certification level for the building is awarded,
or
(2) 	the subsequent purchaser of a sustainable residential
building with respect to which no tax credit has been
previously claimed.
NOTE: Buildings owned by state or local governments,
public school districts, or tribal agencies do not qualify
as a sustainable building for purposes of the sustainable
building tax credit.
To apply for a certificate of eligibility, contact EMNRD at
(505) 476-3320, or write to Energy, Minerals and Natural
Resources Department, 1220 So. St. Francis Dr., Santa
Fe, NM 87505.
Annual Limits Established for Approving Applications
Effective January 1, 2014*, EMNRD cannot issue a

RPD-41327
Rev. 04/11/2016

State of New Mexico - Taxation and Revenue Department
SUSTAINABLE BUILDING TAX CREDIT APPROVAL

certificate of eligibility if the total amount of sustainable
building tax credits issued in a calendar year exceeds
an aggregate amount of $1,000,000 with respect to
sustainable commercial buildings and an aggregate amount
of $4,000,000 with respect to sustainable residential
buildings, provided that no more than $1,250,000 of the
aggregate amount with respect to sustainable residential
buildings shall be for manufactured housing. Applications
are considered in the order received.
If for any tax year, EMNRD determines that the applications
for sustainable building tax credits with respect to
sustainable residential buildings for that tax year exceeds
the aggregate limit above, EMNRD may issue certificates
of eligibility under the aggregate annual limit for sustainable
commercial buildings to owners of sustainable residential
buildings that meet the requirements of EMNRD and
of the sustainable building tax credit, provided that
applications for sustainable building credits for other
sustainable commercial buildings total less than the full
amount allocated for tax credits for sustainable commercial
buildings.
*Prior to January 1, 2014, the aggregate limitations for a
calendar year were $5,000,000 with respect to sustainable
commercial buildings and $5,000,000 with respect to
sustainable residential buildings.
Tax Credit Forms
Before you can claim a credit, the Taxation and Revenue
Department must give you approval to receive the credit.
The following list shows all the forms for sustainable
building tax credits:
•	 RPD-41327, Sustainable Building Tax Credit Approval
•	 RPD-41342, Notice of Transfer of Sustainable Building
Tax Credit
•	 RPD-41329, Sustainable Building Tax Credit Claim
Form
Requesting the Approval from TRD
After EMNRD issues the certificate of eligibility, the owner
of the building must promptly complete Form RPD-41327,
Sustainable Building Tax Credit Approval, and submit it
to TRD with a copy of the certificate of eligibility and any
other information that TRD may require to determine the
amount of the tax credit for which the building owner is
eligible. If all requirements have been complied with, TRD
approves the credit and returns the approved form to the
owner or holder. The sustainable building tax credit allowed
an eligible owner of a qualifying sustainable building may
be claimed against the owner’s personal or corporate
income tax liability or may be sold, exchanged, or otherwise
transferred to another taxpayer. See Sale, Exchange, or
Transfer of the Tax Credit, for more information.

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If the qualifying sustainable building is owned by a
partnership or other business association, the owner
may pass the credit to its member(s), partners(s),
shareholder(s), or beneficiary(ies) by completing Section
II, and submitting a Form RPD-41327, Sustainable
Building Tax Credit Approval, for each member, partner,
shareholder, or beneficiary. Members, partners, and
beneficiaries may claim a credit only in proportion to
their interest in the partnership or association, and are
issued an approval for their portion of the credit. The total
credit claimed in the aggregate by all members, partners,
and beneficiaries of the partnership or other business
association with respect to the sustainable building shall
not exceed the amount of the credit that could have been
claimed by a sole owner of the property. If TRD denies
the approval request, Form RPD-41327 is returned to the
building owner with an explanation.
Sale, Exchange, or Transfer of the Tax Credit
When a holder or owner receives TRD approval, the credit
may be sold, exchanged, or otherwise transferred. Form
RPD-41342, Notice of Transfer of Sustainable Building
Tax Credit, must be used to report to TRD a transfer of
approved sustainable building tax credit. Notice must be
provided to TRD within 10 days of a sale, exchange, or
other transfer. TRD issues the new holder an approval for
the credit transfer, a new credit number, and instructions for
applying the credit to personal or corporate income tax due.
The amount of the credit allowed to a holder who sells,
exchanges or transfers their credit to another taxpayer,
may not be split or divided between taxpayers. The total
amount of credit allowed, as shown on the TRD-approved
document provided to the holder, must either be claimed
or otherwise transferred by the holder. The TRD-approved
document will be either Form RPD-41327, Sustainable
Building Tax Credit Approval, or a TRD-approved Form
RPD-41342, Notice of Transfer of Sustainable Building Tax
Credit, depending on the how the previous holder received
TRD approval for the credit.
If, however, the holder is a partnership or other business
association that passes the credit to its owners, each owner
may claim a credit only in proportion to that owner’s interest
in the partnership or other business association. The total
credit claimed by all owners may not exceed the amount
of the credit that could have been claimed by the holder.
Note: Once a credit is claimed by a holder or owner,
the carryforward may not be further sold, exchanged or
transferred.
An original building owner that is a partnership or other

RPD-41327
Rev. 04/11/2016

State of New Mexico - Taxation and Revenue Department
SUSTAINABLE BUILDING TAX CREDIT APPROVAL

business association may pass TRD-approved credit to
its owners, by completing Sections I and II of Form RPD41327, Sustainable Building Tax Credit Approval, and
submitting a Form RPD-41327 for each owner.
How You Can Claim the Approved Credit
Holders or owners can claim the approved sustainable
building tax credit against their personal or corporate
income tax liability for the tax year subject to the rules
described next. If the amount of the credit available in a
tax year exceeds the liability for that tax year, holders or
owners can carryforward the excess for up to seven years.
The holder or owner must first claim the credit in the year
they are eligible to claim the credit or the portion of the
credit before the carryforward can be claimed. This is true
even if no tax is due.
Effective January 1, 2014, if the total approved amount of
all sustainable building tax credits in a tax year is:
•	 $100,000 or more, 25% of the total credit amount is
applied against the holder’s personal or corporate
income tax liability in the tax year in which the credit
is approved, and 25% in each of the next three
subsequent tax years.
•	 Less than $100,000, a maximum of $25,000 is
applied against the holder’s personal or corporate
income tax liability for the tax year in which the credit
is approved, and a maximum of $25,000 for the next
three subsequent tax years as needed until the total
credit is applied.
Prior to January 1, 2014, if the amount of the sustainable
building tax credit represented by the TRD approval is
$25,000 or more, the credit must be applied for the tax
year in which the credit is approved and for the next three
subsequent tax years, in increments of 25% of the total
credit amount in each of the four tax years. If the amount
of the sustainable building tax credit approved by TRD
is less than $25,000, the entire amount of the credit may
be applied in the tax year in which the credit is approved.
In all cases, you may carryforward any excess from a
credit that has been claimed for up to seven years. Married
individuals who file separate returns for a tax year in which
they could have filed a joint return may each claim only
one-half of the sustainable building credit that would have
been allowed on a joint return.
Effectiveness and Cost of Credit
Beginning in 2015 and every five years thereafter, TRD
presents annual reports to the Revenue Stabilization
and Tax Policy Committee and the Legislative Finance

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Committee with an analysis of the effectiveness and cost
of the tax credit, and whether the tax credit is performing
the purpose for which it was created.
COMPLETING THE CREDIT APPROVAL FORM
Follow these instructions to complete each section of RPD41327, Sustainable Building Tax Credit Approval.
Section I. Complete the name block with the information
for the eligible building owner.
Required to receive the credit:
•	 Mark in box to certify the statement
•	 Owner’s signature and date of signature
•	 Attach certificate issued from EMNRD
Section II. Complete this section if the owner of the
qualifying sustainable building is a partnership or other
business association passing all or a portion of the credit
to a member, partner, shareholder, or beneficiary. If there is
more than one member, partner, shareholder, or beneficiary,
submit a Form RPD-41382 for each. The building owner,
and if applicable, the holder, if transferred to a member,
partner, shareholder or beneficiary, must certify that the
solar market development tax credit, pursuant to Section
7-2-18.14 NMSA 1978, has not and will not be claimed for
any solar thermal system or photovoltaic system installed
in the sustainable building as a component of qualification
for the rating system certification level used in determining
eligibility for the sustainable building tax credit.
Required to transfer the credit to members, partners,
shareholders or beneficiaries:
•	 Complete Section II
•	 Mark in box to certify the statement
•	 Holder’s signature and date of signature
Section III. TRD completes this section of the form,
approving, partially approving, or disapproving the
sustainable building tax credit.
Attach a copy of the certificate of eligibility issued by
EMNRD to RPD-41327, Sustainable Building Tax Credit
Approval, and mail to: Taxation and Revenue Department,
Edit Error, P.O. Box 5418, Santa Fe, NM 87502-5418. For
assistance completing this form, call (505) 827-0792.
IMPORTANT DEFINITIONS
Refer to the following definitions to understand the
meanings of terms used in the sustainable building forms
and instructions.
Build Green NM rating system means the certification

RPD-41327
Rev. 04/11/2016

State of New Mexico - Taxation and Revenue Department
SUSTAINABLE BUILDING TAX CREDIT APPROVAL

standards adopted by the Homebuilders Association of
Central New Mexico.
LEED means the most current Leadership in Energy
and Environmental Design green building rating system
guidelines developed and adopted by the U. S. Green
Building Council.
LEED-CI means the LEED rating system for commercial
interiors.
LEED-CS means the LEED rating system for the core and
shell of buildings.
LEED-EB means the LEED rating system for existing
buildings.
LEED-H means the LEED rating system for homes.
LEED-NC means the LEED rating system for new buildings
and major renovations.
LEED gold means the rating in compliance with, or
exceeding, the second highest rating awarded by the LEED
certification process.
LEED platinum means the rating in compliance with,
or exceeding, the highest rating awarded by the LEED
certification process.
LEED silver means the rating in compliance with, or
exceeding, the third highest rating awarded by the LEED
certification process.
Manufactured housing means a multisectioned home
that is:
a.	 a manufactured home or modular home;
b.	 a single-family dwelling with a heated area of at least
36 feet by 24 feet and a total area of at least 864
square feet;
c.	 constructed in a factory to the standards of the U.S.
Department of Housing and Urban Development, the
National Manufactured Housing Construction and
Safety Standards Act of 1974, and the Housing and
Urban Development Zone Code 2 or New Mexico
construction codes up to the date of the unit’s
construction; and
d.	 installed consistent with the Manufactured Housing
Act and rules adopted pursuant to that act relating to
permanent foundations.
Person does not include state, local government, public
school district, or tribal agencies.
Qualified occupied square footage means the occupied
spaces of the building as determined by:
a.	 the U.S. Green Building Council for those buildings
obtaining LEED certification,

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b.	 the administrators of the Build Green NM rating system
for those homes obtaining Build Green NM certification,
and
c.	 the U.S. Environmental Protection Agency for ENERGY
STAR-certified manufactured homes.
Sustainable building means either a sustainable
commercial building or a sustainable residential building.
Sustainable commercial building means a multifamily
dwelling unit, as registered and certified under the LEED-H
or Build Green NM rating system, that is certified by the
U.S. Green Building Council as LEED-H silver or higher or
by Build Green NM as silver or higher, and has achieved
a home energy rating system index of 60 or lower as
developed by the Residential Energy Services Network,
or a building that has been registered and certified under
the LEED-NC, LEED-EB, LEED-CS, or LEED-CI rating
system and that:
a.	 is certified by the U.S. Green Building Council at LEED
silver or higher,
b.	 achieves any prerequisite for and at least one point
related to commissioning under LEED “energy and
atmosphere,” if included in the applicable rating
system, and
c.	 has reduced energy consumption, as follows:
1.	 through 2011, a 50% energy reduction will be
required based on the national average for that
building type as published by the U.S. Department
of Energy; and beginning January 1, 2012, a 60%
energy reduction will be required based on the
national average for that building type as published
by the U.S. Department of Energy; and
2.	 is substantiated by the U.S. Environmental
Protection Agency target finder energy performance
results form, dated no sooner than the schematic
design phase of development.
Sustainable residential building means
a.	 a building used as a single-family residence as
registered and certified under the Build Green NM or
LEED-H rating systems that:
1.	 is certified by the U.S. Green Building Council as
LEED-H silver or higher or by Build Green NM as
silver or higher, and
2.	 has achieved a home energy rating system index
of 60 or lower as developed by the Residential
Energy Services Network, or
b.	 manufactured housing that is ENERGY STAR-qualified
by the U.S. Environmental Protection Agency.
Tribal means of, belonging to, or created by a federally
recognized Indian nation, tribe, or pueblo.

State of New Mexico - Taxation and Revenue Department
SUSTAINABLE BUILDING TAX CREDIT APPROVAL

RPD-41327
Rev. 04/11/2016

Page 5 of 5

The amount of the sustainable building tax credit that may be claimed with respect to a sustainable commercial building
is calculated based on the certification level the building has achieved in the LEED green building rating system and the
amount of qualified occupied square footage in the building, as indicated in the following chart:
		

Commercial Building	
		
Rating System/Level		
					
		
LEED-NC Silver		
						
					

Qualified Occupied	
Square Footage 	

Tax Credit per
Square Foot

	

First 10,000			
Next 40,000			
Over 50,000 up to 500,000		

$ 3.50
$ 1.75
$ 0.70

		
LEED-NC Gold			
						
					

First 10,000			
Next 40,000			
Over 50,000 up to 500,000		

$ 4.75
$ 2.00
$ 1.00

		
LEED-NC Platinum		
						
					

First 10,000			
Next 40,000			
Over 50,000 up to 500,000		

$ 6.25
$ 3.25
$ 2.00

		
LEED-EB 	
		
		
or CS Silver			
					

First 10,000			
Next 40,000			
Over 50,000 up to 500,000		

$ 2.50
$ 1.25
$ 0.50

		
LEED-EB 			
		
or CS Gold			
					
		
		
LEED-EB 			
		
or CS Platinum			
					

First 10,000			
Next 40,000			
Over 50,000 up to 500,000		

$ 3.35
$ 1.40
$ 0.70	

First 10,000			
Next 40,000			
Over 50,000 up to 500,000		

$ 4.40
$ 2.30
$ 1.40

		
LEED-CI Silver			
						
					

First 10,000			
Next 40,000			
Over 50,000 up to 500,000		

$ 1.40
$ 0.70
$ 0.30

		
LEED-CI Gold			
						
					

First 10,000			
Next 40,000			
Over 50,000 up to 500,000		

$ 1.90
$ 0.80
$ 0.40

		
LEED-CI Platinum			
						
					

First 10,000			
Next 40,000			
Over 50,000 up to 500,000		

$ 2.50
$ 1.30
$ 0.80

The amount of the sustainable building tax credit that may be claimed with respect to a sustainable residential building is
calculated based on the certification level the building has achieved and the amount of qualified occupied square footage in
the building, as indicated in the following chart:
	

	
Residential
Building
Rating System/Level

		
		
LEED-H Silver or Build	
		
Green NM Silver 		

Tax Credit per
Square Foot

Qualified Occupied
Square Footage	
First 2,000			
Next 1,000			

$5.00
$2.50

		
		

LEED-H Gold or Build 		
Green NM Gold			

First 2,000			
Next 1,000			

$6.85
$3.40		

		
		

LEED-H Platinum or Build		
Green NM Emerald			

First 2,000			
Next 1,000			

$9.00
$4.45

		

EPA ENERGY STAR		

		 Manufactured Housing		
			
	

		

Up to 3,000
		

$3.00