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 the completion of the new site-built home.

Additionally, the bill specifies that any portion of the tax credit exceeding a taxpayer's liability cannot be refunded but may be carried forward for up to three years. It also includes provisions for married individuals filing separately, allowing them to claim half of the credit they would have received if filing jointly. The construction industries division is tasked with issuing certificates of eligibility and compiling an annual report on the tax credit's usage, while the bill will be repealed on January 1, 2032, and will apply to taxable years starting January 1, 2025.