SB 55 increases New Mexico's income tax credit for solar energy installations to 30% of the cost (up from 10%), with a maximum annual credit of $15,000 per taxpayer. It applies directly to homeowners, businesses, and agricultural operations that install qualifying solar thermal or photovoltaic systems in New Mexico. Taxpayers can transfer their unused credit to another taxpayer, and the state will cap total annual credits at $30 million to prevent overspending. The bill takes effect for tax years beginning January 1, 2026, and expires for tax years ending before 2032.
HB 103 caps annual increases in residential property tax assessments at 103% of the prior year's value or 106.1% of the value from two years prior, whichever is higher. This limit does not apply if a property's zoning changed or if ownership transferred in the year before the tax year. The bill also requires counties with low property sales ratios to reassess properties to meet a minimum threshold before the cap applies. It takes effect for tax years beginning January 1, 2026.
HB 332 reauthorizes and adjusts the use of existing state funds for specific capital projects, primarily extending their spending deadlines to fiscal year 2028 and modifying project purposes. It changes the original use of funds for the Lea County courthouse renovation (now for general county buildings) and expands the Albuquerque youth facility project to include young adults. The bill also extends timelines for a Navajo Nation bridge project and redirects unspent funds from a Curry County recreation complex to renovate a local park. These adjustments apply to previously appropriated funds without creating new spending, focusing on managing unspent balances from prior legislative actions.
HB 2, the General Appropriation Act of 2026, allocates funding for New Mexico's state government operations during fiscal year 2027. It directs $55 million from the general fund to legislative agencies and $496 million from the general fund to the judiciary, with additional amounts from other funding sources. The bill requires unspent funds at year-end to automatically return to the general fund by October 1, 2026 and 2027, and establishes accounting rules for tracking revenue and expenditures. This bill affects all state agencies by setting their budget allocations and spending rules for the 2027 fiscal year.
HB 153 establishes a state rebate program to incentivize the use of low-carbon construction materials, such as cement, steel, and glass, in eligible projects (over one residential unit or 5,000 square feet of nonresidential space). Material buyers (e.g., developers or contractors) can receive rebates for purchasing materials meeting emissions benchmarks set by the Department of Environment - 15% below industry-average greenhouse gas emissions - verified through independently assessed environmental product declarations. Rebates are capped at $500,000 per project and $10 million statewide annually, with priority given to projects achieving the greatest emissions reductions and using New Mexico-made materials. The program requires annual reporting on emissions reductions and includes strict antifraud measures, including penalties for false claims.
SB 151 adjusts New Mexico's corporate tax calculation to better align with federal rules for certain income types. It modifies the state's definition of "base income" by adding back specific federal deductions (like interest from state bonds) and subtracting amounts for bonus depreciation and interest expenses that the federal government allows. This bill directly affects corporations operating in New Mexico that file federal tax returns, particularly those with income from controlled foreign corporations. The key change ensures New Mexico's tax calculation accounts for federal adjustments related to foreign income and depreciation, while applying standard apportionment rules to attributed income.
This bill increases the annual transfer of funds from the New Mexico Irrigation Works Construction Fund to the Acequia and Community Ditch Infrastructure Fund from $2.5 million to $5 million. It directly affects acequia (traditional community irrigation systems) and local ditch infrastructure projects by providing them with doubled annual funding. The key mechanism is an amendment to existing state statute governing fund allocations, while maintaining a separate $1 million annual transfer to the Forest Land Protection Revolving Fund. The change takes effect on July 1, 2026, and represents a concrete policy shift in water infrastructure funding priorities.
HB 4 adjusts how funds from New Mexico's health insurance premium surtax are distributed to the Health Care Affordability Fund. It changes the percentage of surtax revenue sent to the fund over time: 55% before July 2024, 30% from July 2024 to September 2025, 55% from September 2025 to September 2026, and 100% after September 2026. The bill directly affects the allocation of state revenue generated by the health insurance surtax, which supports healthcare affordability programs. This policy change modifies existing distribution rules without altering the surtax rate itself. The fund's purpose is to assist New Mexicans with healthcare costs, though the bill does not specify new eligibility criteria or program expansions.
HB 7 directs annual transfers from New Mexico's Workforce Development and Apprenticeship Trust Fund to two specific programs: $2.5 million to the Public Works Apprentice and Training Fund and $2.5 million to the Workforce Solutions Department for fiscal year 2026, with amounts reducing to $1.5 million each annually after 2026. These funds support apprenticeship programs under the Apprenticeship Assistance Act, directly aiding job training for workers in public works and other sectors. The bill ensures dedicated funding for workforce development while including a contingency to transfer money to the general fund only if other reserves are exhausted during budget shortfalls.
HB 253 requires New Mexico school districts and charter schools to report projected enrollment numbers for students in distance learning programs. It changes school funding calculations by excluding distance learning students from membership counts used to determine state funding, and establishes a new approval process for these programs requiring state education department review. The bill also sets enrollment limits for distance learning with specific exceptions, clarifies requirements for students with disabilities in such programs, and renames the "Statewide Cyber Academy Act" as the "Distance Learning Act" while updating related definitions. These changes directly affect school districts, charter schools, and students enrolled in distance learning programs.
