TRD-41422: TRD-41422 Home Fire Recovery Income Tax Credit Claim Form (2024)
New Mexico · New Mexico TRD · Used for tax years 2024
Form TRD-41422 is used to claim New Mexico’s home fire recovery income tax credit against personal or fiduciary income tax liability. It reports the certified credit amount, credit claimed in prior years, remaining available credit, and the amount claimed for the current tax year
Who files this form
Use Form TRD-41422 if you have been certified by the Construction Industries Division of the New Mexico Regulation and Licensing Department (RLD) and want to claim the home fire recovery credit against personal or fiduciary income tax.
To qualify:
- Your home must have been destroyed by wildfire in calendar years 2021 through 2023.
- You must have incurred qualified expenses for completed construction of a replacement home, including a manufactured home, on the same property.
- Qualified expenses must be incurred beginning May 15, 2024, and before January 1, 2030.
- You must have an RLD certificate of eligibility.
When it's due
For the 2024 version of this form:
- The credit is available for tax years beginning on or after January 1, 2024.
- Qualified home expenses must be incurred beginning May 15, 2024, and before January 1, 2030.
- Apply for certification no later than twelve months after the calendar year in which construction of the home is completed.
- Claim the credit on a personal or fiduciary income tax return within twelve months of the certificate's issuance.
The text does not give a specific filing due date for the 2024 income tax return.
What you'll need
Attach these items to your New Mexico personal income tax return (PIT-1) or fiduciary income tax return (FID-1):
- Completed Schedule CR, either PIT-CR or FID-CR.
- Completed Form TRD-41422.
- A copy of your RLD certificate of eligibility.
- Schedule A if a business entity awarded the credit is allocating it to members of a partnership or limited liability company.
You will also need your certificate number, original credit amount, and the total credit claimed in prior tax years. For Schedule A, provide each member's name, SSN, ITIN or FEIN, ownership percentage, and allocated credit amount.
How to file
- Obtain certification from RLD. To apply, visit RLD's Construction Industries Division.
- Complete TRD-41422 with your identifying information, the beginning and ending dates of the tax year, and your certificate number.
- Enter the original credit amount, subtract credit claimed in prior years, and enter the portion you are claiming for the current year.
- Sign and date the form, and attach it and the required supporting documents to your PIT-1 or FID-1 return.
You may claim the credit when filing online. Sign in to Taxpayer Access Point (TAP) and follow the prompts to claim the credit and attach the form.
The text does not provide a mailing address. For help, email businesscredit.mgr@tax.nm.gov or call (505) 827-0792.
Common mistakes
- Claiming more than your tax liability. This credit is non-refundable, and the amount claimed cannot exceed your income tax liability for that year.
- Carrying unused credit forward too long. Unused credit may be carried forward only for the three consecutive tax years following the original claim.
- Leaving out the certificate copy. You must submit a copy of the RLD certificate with your PIT-1 or FID-1 return.
- Allocating a business credit incorrectly. Allocate the credit according to each member's ownership interest. The total claimed by all members cannot exceed the amount on the RLD certificate.
- Missing the claim window. The credit must be claimed within twelve months of the certificate's issuance, including when using a fiscal tax year.
Questions people ask
What is the maximum credit per home?
The credit may not exceed $50,000 per home. Use the approved amount shown on your RLD certificate, or your originally allocated share if you are one of several owners of a business entity that owns the property.
Can I receive a refund for unused credit?
No. The credit is non-refundable. Unused credit may be carried forward to reduce income tax liability for up to three additional consecutive tax years.
Does a manufactured replacement home qualify?
The form includes manufactured homes. The replacement home must be completed on the same property as the wildfire-destroyed home, and the other eligibility requirements must be met.
Can I claim the credit for a fiscal tax year?
Yes. Enter both the beginning and ending dates of your tax year. You must still claim the credit within twelve months of the certificate's issuance.