New Mexico Department of Taxation and Revenue is offering tax credits to individuals or businesses that donate land, buildings, cash or services to eligible affordable housing projects, such as Habitat for Humanity.  The tax credit is equal to 50% of the value of the donation, and can go towards any State income taxes, gross receipts taxes and compensating taxes (excluding local option gross receipts tax imposed by a municipality or county, or the government gross receipts tax).

The tax credits may be carried over for up to five years and may be transferred one time to any individual or business. In addition to receiving a tax credit, you may also write off your donation as a charitable contribution on your federal taxes.  

The tax savings alone make donating to Habitat for Humanity worth it. For example, if an individual or business donates $10,000 to Habitat for Humanity they will receive a tax credit of $5,000.  They can then use all of their tax credit for any state tax liability for the first year, or carry the credit forward for up to five years. Or they can give their tax credit to someone else that needs it. And they can still deduct $10,000 from their federal taxes. When all is said and done, the $10,000 donation ends up costing only $2,500 with a tax savings of $7,500.  Most importantly, the donation goes towards Habitat for Humanity’s efforts to end the affordable housing crisis in New Mexico.

Giving to Habitat for Humanity has never been more worthwhile. If you are interested in participating in this program, please contact Gayle Romeo, Resource Development Director at ((505) 864-3033 or at [ email ].  Please note that we are in the process of applying for an allocation of tax credits for 2007 and the availability of tax credits is subject to certain eligibility requirements.