CORPORATE INCOME TAX CHANGES

Added new definitions for 'base income' that adjust how federal taxable income is calculated for state tax purposes, including specific additions and subtractions related to federal tax rules.

Added new definitions for 'captive real estate investment trust,' 'common ownership,' 'consolidated group,' and 'unitary group' to clarify how related corporations are treated for tax purposes.

Created a new Local Journalist Employment Income Tax Credit worth 30% of wages paid to journalists, capped at $4 million annually, available for taxable years before 2031.

Created a new Local Journalist Employment Corporate Income Tax Credit with the same 30% wage credit structure for corporations employing journalists.

Added a new Local News Printer Income Tax Credit providing up to $10,000 or $5,000 per qualified employee depending on hours worked, capped at $1 million annually.

Added a new Local News Printer Corporate Income Tax Credit mirroring the individual credit for corporations employing news printers.

Created a new Physician Tax Credit of $10,000 for individual physicians who work at least 1,584 hours in New Mexico annually.

Added a new Gross Receipts Tax deduction for construction materials and labor used to develop affordable multifamily housing projects, effective July 1, 2026.

Added a new Gross Receipts Tax deduction for in-office equipment and medication sold to healthcare practitioners, effective July 1, 2026.

Changed effective dates for various sections, with corporate tax changes applying to taxable years beginning on or after January 1, 2027, and most new credits applying to years beginning on or after January 1, 2026.

Added detailed definitions for 'base income' to align state corporate income tax calculations with federal tax rules, including adjustments for interest expenses, bonus depreciation, and controlled foreign corporation income.

Created the Quantum Facility Infrastructure Project Fund to provide up to $50 million per facility in state funding for quantum technology infrastructure projects in New Mexico.

Established new tax credits for local news organizations (up to 30% of wages paid to journalists, capped at $4 million annually) and for physicians (up to $10,000 credit for those working 1,584 hours in New Mexico).

Created child care facility donation tax credits for both individuals and corporations (50% of donations, capped at $500,000 per taxpayer, with $10 million annual aggregate cap).

Added gross receipts tax deductions for construction materials and labor used for affordable multifamily housing projects, and for in-office equipment and medication sold to health care practitioners.

Modified apportionment rules for business income, allowing companies with manufacturing facilities or headquarters in New Mexico to elect sales-factor-only apportionment instead of the standard three-factor formula.

Created mechanisms for distributing gross receipts tax deductions to municipalities and counties that lose revenue due to new deductions for health care practitioner equipment and medication sales.

Set effective dates for various provisions, with most new tax credits and deductions applying to taxable years beginning on or after January 1, 2026, and corporate tax definition changes applying to years beginning on or after January 1, 2027.