Land Conservation Incentives Credit

Charitable donations of land or an interest in land (conservation easement) to public or private conservation agencies for conservation purposes are eligible for a state tax credit through the New Mexico Land Conservation Incentives Act. The maximum tax credit is 50% the appraised value of the donation and a maximum of $250,000 per individual donor. A taxpayer has a maximum of 20 years to fully use the tax credit following the taxable year in which the donation was made, or the tax credit may be transferred (sold) to another taxpayer through a tax credit broker in minimum increments of $10,000.

Land conservation tax credits must be approved by the Energy, Minerals and Natural Resources Department Secretary in consultation with the Natural Lands Protection Committee. Please refer to rule 30.13.20 NMAC for details on eligibility and certification of the tax credit. Contact Bob Sivinski with any questions.

The credit claimed may not exceed the amount of income tax due, and may be carried forward for 20 consecutive years following the date of the qualified donation. Additionally, for a conveyance made on or after
January 1, 2008, the credit may be sold, exchanged or otherwise transferred in increments of $10,000 or more. Credits must be transferred by qualified intermediaries. A tax credit or increment of the credit may only be sold, exchanged or transferred once. The new holder may use the credit in the tax year in which the credit was
sold, exchanged or transferred and may carry forward unused credits to succeeding tax years to a maximum
of 20 consecutive tax years following the tax year in which the original qualified donation occurred.


To receive the credit, a taxpayer must apply for a certificate of eligibility from EMNRD. After obtaining the
certificate, the taxpayer must apply for the credit to the Taxation and Revenue Department (TRD) using Form
RPD-41335, Land Conservation Incentives Tax Credit Application. The certificate of eligibility from EMNRD
must be attached to the application. If a transfer of the credit is requested, the transfer must be made through
a qualified intermediary. The qualified intermediary must notify TRD of the transfer within 10 days of the
transaction by completing Form RPD-41336, Notice of Transfer of Land Conservation Incentives Tax Credit.
Notary is required.

For information on obtaining the certificate of eligibility, contact the Forestry Division of EMNRD at (505)476-3347.

A credit for land donated by a pass-through entity may be claimed by either a pass-through tax entity, if the
entity is the taxpayer, or the member, manager, partner, shareholder or beneficiary in proportion to his interest
in the entity, but only when the income, deductions and tax liability pass through the entity to the member,
manager, partner, shareholder or beneficiary. Tax credits may not be claimed by both the entity and the
member, manager, partner, shareholder or beneficiary for the same donation.

Obtaining the Certificate of Eligibility: The taxpayer must first obtain a certificate of eligibility for the land or
interest in land that has been certified as eligible for treatment as a qualified donation by the Secretary of
EMNRD. Contact the Forestry Division of EMNRD at (505) 476-3347 for information on obtaining the certificate
of eligibility. Once the certificate of eligibility is received, the holder uses the claim form to apply the credits to his/her personal or corporate income taxes.


Application for Certification Process:

Fill out the land conservation incentives tax credit application form

Contact Land Conservation Incentives Credit

Contact Land Conservation Incentives Credit

Bob Sivinski
Forestry Division
1220 South St. Francis Drive
Santa Fe, New Mexico  87505
Phone: (505) 476-3347


Service Area

National Program