GAS & ELECTRIC BILL INCOME TAX CREDIT

HB 545 creates a 50% income tax credit for New Mexico residents who pay gas or electric bills for their primary home, directly benefiting low-to-moderate income households. The credit allows taxpayers to reduce their state income tax liability by half the amount paid for utility services to their primary residence, with any unused credit refunded. Eligibility requires certification from the Public Regulation Commission, and married couples filing separately can claim only half the credit they would receive on a joint return. The credit applies to taxable years beginning January 1, 2025, and must be claimed within one year of receiving certification.