Donate Directly to Affordable Housing Developments and Receive State Tax Credits

Affordable Housing Donations

State tax credits are available to individuals and businesses that provide donations to help build affordable housing in New Mexico. The credit is equal to up to 50 percent of the value of the donation. Donations may include land, buildings, money, or services.

Donations may be made directly to an affordable housing development that has been approved by MFA or to the New Mexico Charitable Trust, which is a 501(c)3 administered by MFA. The minimum accepted donation is $200 and the maximum accepted donation is $2 million.

Tax credits may be applied to state income tax, gross receipts tax and compensating tax burdens. Tax credits may not be applied to local option gross receipts taxes imposed by a municipality or county or to the government gross receipts tax.

Donations to affordable housing developments are made by donating at least the minimum accepted donation amount directly to the developer. Afterward, they will reach out to you to fill out a voucher form to receive the tax credits. Tax credits are claimed through the New Mexico Taxation and Revenue Department.

All or part of a donor’s tax credits may be transferred to an eligible individual or business. Such transactions require notification to MFA and the New Mexico Taxation and Revenue Department within 10 days of the transfer. The entire tax credit or a fraction thereof may be redeemed the first year or may be carried forward for up to five years.