The proposed bill establishes a new tax credit known as the "home fire recovery income tax credit" for taxpayers in New Mexico who have incurred qualified expenditures to replace homes destroyed by wildfires between 2021 and 2023. Eligible taxpayers, who are not dependents of another individual, can claim a tax credit equal to their qualified site-built home expenditures against their tax liability, provided they apply for certification from the construction industries division within twelve months of completing the construction of their new home. The bill outlines the necessary documentation required for certification, including proof of the prior home's destruction and proof of expenditures for the new home.

Additionally, the bill includes provisions for the administration of the tax credit, such as the issuance of certificates of eligibility by the construction industries division and the ability for taxpayers to carry forward any unused credit for up to three years. It also specifies that married individuals filing separately may only claim half of the credit they would have received if filing jointly. The bill mandates an annual report from the department on the tax credit's usage and its impact, and it includes a delayed repeal of the tax credit effective January 1, 2032, with applicability starting from taxable years beginning on or after January 1, 2025.