SB 93 creates a 50% corporate income tax credit for New Mexico railroads that make qualified infrastructure investments, such as track reconstruction, new rail spurs, or facilities for new customers. It directly affects railroads classified as Class 2 or 3 by the federal government or owners/lessees of rail spurs in New Mexico, with credit limits of $5,000 per mile of track for maintenance/replacement or $1 million per new customer project. The credit requires Department of Transportation certification, has a $6 million annual cap, and allows transfer of unused credits between taxpayers. Its purpose is to incentivize rail expansions that would not occur without the credit, aiming to increase freight capacity and reduce highway congestion.
This bill exempts from New Mexico state income tax salaries paid by the U.S. government to residents serving in uniformed services. It directly affects New Mexico residents working in the military (active/reserve army, navy, air force, etc.), Coast Guard, U.S. Public Health Service, NOAA Corps, or state National Guard. The key provision removes state tax liability on these federal salaries for tax returns filed in 2026 and later. The exemption requires taxpayers to report it to the state tax department and is included in official tax expenditure reports.
HB 148 creates a temporary 5% annual cap on increases in property tax valuations for nonresidential properties (like offices or stores) from 2026 through 2036, affecting commercial property owners. It also updates requirements for residential property transfers, mandating that sellers or buyers submit an affidavit with specific details (names, sale price, property description) to county assessors within 30 days of a transfer, but excluding many common transactions like family transfers, government deals, or leases. The bill explicitly states these affidavits are for statistical use only and cannot be used in property valuation. Exceptions to the valuation cap include new properties, expansions after disasters, or changes in property zoning.
HB 154 updates the definition of "advanced energy product" for New Mexico's existing tax credit programs. It specifies that qualifying products include solar components (like panels and cells), wind turbine parts, battery materials, fusion machine components, and critical minerals (such as lithium and cobalt). This definition determines eligibility for the Advanced Energy Equipment Income Tax Credit and Corporate Income Tax Credit, which provide tax relief for manufacturers investing in qualifying facilities within New Mexico. The bill directly affects businesses producing these specific energy technologies who seek to claim the tax credits.
HB 92 would expand New Mexico's tax exemption for Social Security income, directly benefiting seniors whose primary income comes from Social Security. The bill phases in higher tax exemptions over time: starting at 20% for 2026-2027, increasing to 40% (2028-2029), 60% (2030-2031), 80% (2032-2033), and reaching 100% by 2034. It sets income thresholds: $75,000 for married filing separately, $150,000 for joint filers, and $100,000 for single filers. The bill is currently pending before the House Commerce & Economic Development and Taxation & Revenue Committees.
SB 120 creates a tax credit for New Mexico local news organizations that employ journalists. It allows qualifying owners (individuals or businesses) to claim a credit equal to 30% of wages paid to each eligible journalist, capped at $50,000 per journalist annually. The credit applies to taxable years before 2031, with a total annual limit of $4 million across all credits. To qualify, a journalist must work at least 25% of the year for a local news organization that meets specific content, ownership, and audience requirements (e.g., publishing local stories or serving New Mexico audiences).
HB 160 creates a new "All Cities and Counties Fund" in New Mexico's state treasury to distribute a portion of gross receipts tax revenue to municipalities (cities/towns) and counties. The bill requires 8% of eligible tax revenue to be transferred into this fund, with annual distributions calculated using a formula based on each municipality's or county's population and their share of state tax revenue. Transfers are scheduled to begin on November 1, 2027, and annually thereafter, directly affecting all cities and counties across New Mexico. The fund aims to provide ongoing financial support to local governments based on population data and tax contributions.
SB 36 creates a 30% tax credit for businesses making at least $3 million in qualified infrastructure or equipment expenditures for quantum facilities located in New Mexico. The credit, capped at $50 million per facility, directly affects companies building quantum technology research facilities in the state. Key provisions require preliminary and final certification from New Mexico's Economic Development Department, mandate equipment stay in-state for 10 years, and include specific definitions for "quantum facility" and "qualified equipment." The credit reduces income tax liability, with unused portions refundable, and is subject to an annual $50 million state budget cap.
SB 92 creates a tax deduction for businesses selling construction materials and labor used in affordable multifamily housing projects in New Mexico. It directly affects developers and contractors building housing that qualifies as "affordable" (defined as units for households earning ≤80% of the area median income) and sold to qualifying grant recipients under the Affordable Housing Act. The deduction reduces taxable gross receipts for these specific sales until July 1, 2033, and requires the tax cost to be tracked in the state budget. The bill takes effect on July 1, 2026.
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.
