SB 92

                                1  SENATE BILL 92
                                2      57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
                                3  INTRODUCED BY
                                4     Michael Padilla and Cindy Nava and Elizabeth "Liz" Stefanics
                                5  and Cristina Parajón and Heather Berghmans
                                6
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                                8
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                                10  AN ACT
                                11   RELATING TO TAXATION; CREATING A GROSS RECEIPTS TAX DEDUCTION
                                12   FOR THE SALE OF CONSTRUCTION MATERIALS AND LABOR USED FOR THE
                                13   DEVELOPMENT OF AFFORDABLE HOUSING MULTIFAMILY RESIDENTIAL
                                14   HOUSING PROJECTS.
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                                16   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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                                17        SECTION 1.     A new section of the Gross Receipts and
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                                18   Compensating Tax Act is enacted to read:
                                19        "[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS--SALE OF
                                20   CONSTRUCTION MATERIALS AND LABOR USED FOR THE DEVELOPMENT OF
                                21   AFFORDABLE HOUSING MULTIFAMILY RESIDENTIAL HOUSING PROJECTS.--
                                22  A.   Prior to July 1, 2033, receipts from selling
                                23   construction materials and labor may be deducted from gross
                                24   receipts if:
                                25  (1)   the construction materials and labor are
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                                1    being used for the purpose of developing multifamily
                                2    residential housing;
                                3  (2)   the housing units being developed will be
                                4    affordable housing; and
                                5  (3)   the construction materials and labor are
                                6    sold to a qualifying grantee pursuant to the Affordable Housing
                                7    Act.
                                8  B.   The deduction provided by this section shall be
                                9    included in the tax expenditure budget pursuant to Section
                                10   7-1-84 NMSA 1978, including the annual aggregate cost of the
                                11   deduction.
                                12  C.   As used in this section:
                                13  (1)   "affordable housing" means multifamily
                                14   residential housing primarily for persons or households of low
                                15   or moderate income;
                                16  (2)   "building" means a structure capable of
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                                17   being renovated or converted into affordable housing or a
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                                18   structure that is to be demolished and is located on land that
                                19   is donated and upon which affordable housing will be
                                20   constructed;
                                21  (3)   "low or moderate income" means a household
                                22   in which the current annual income is at or below eighty
                                23   percent of the area median income for the geographic area in
                                24   which the household is located, adjusted for family size, as
                                25   determined by the United States department of housing and urban
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                                                                     - 2 -
                                1    development; and
                                2  (4)   "multifamily residential housing" means
                                3    any building or portion thereof that is primarily occupied, or
                                4    is designed or intended to be primarily occupied, as a
                                5    residence by more than three households.     "Multifamily
                                6    residential housing" includes congregate housing and
                                7    transitional or temporary housing for homeless persons."
                                8  SECTION 2.     EFFECTIVE DATE.--The effective date of the
                                9    provisions of this act is July 1, 2026.
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