CONSTRUCTION MATERIALS GROSS RECEIPTS

SB0092

SENATE BILL 92

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Michael Padilla
and
Cindy Nava
and
Elizabeth "Liz" Stefanics

and
Cristina Parajón
and
Heather Berghmans

AN ACT

RELATING TO TAXATION; CREATING A GROSS RECEIPTS TAX DEDUCTION
FOR THE SALE OF CONSTRUCTION MATERIALS AND LABOR USED FOR THE
DEVELOPMENT OF AFFORDABLE HOUSING MULTIFAMILY RESIDENTIAL
HOUSING PROJECTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
A new section of the Gross Receipts and
Compensating Tax Act is enacted to read:

"[
NEW MATERIAL
] DEDUCTION--GROSS RECEIPTS--SALE OF
CONSTRUCTION MATERIALS AND LABOR USED FOR THE DEVELOPMENT OF
AFFORDABLE HOUSING MULTIFAMILY RESIDENTIAL HOUSING PROJECTS.--

A. Prior to July 1, 2033, receipts from selling
construction materials and labor may be deducted from gross
receipts if:

(1) the construction materials and labor are
being used for the purpose of developing multifamily
residential housing;

(2) the housing units being developed will be
affordable housing; and

(3) the construction materials and labor are
sold to a qualifying grantee pursuant to the Affordable Housing
Act.

B. The deduction provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the annual aggregate cost of the
deduction.

C. As used in this section:

(1) "affordable housing" means multifamily
residential housing primarily for persons or households of low
or moderate income;

(2) "building" means a structure capable of
being renovated or converted into affordable housing or a
structure that is to be demolished and is located on land that
is donated and upon which affordable housing will be
constructed;

(3) "low or moderate income" means a household
in which the current annual income is at or below eighty
percent of the area median income for the geographic area in
which the household is located, adjusted for family size, as
determined by the United States department of housing and urban
development; and

(4) "multifamily residential housing" means
any building or portion thereof that is primarily occupied, or
is designed or intended to be primarily occupied, as a
residence by more than three households. "Multifamily
residential housing" includes congregate housing and
transitional or temporary housing for homeless persons."

SECTION 2.
EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2026.

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