Budget & Taxes

SB 62 transfers $29.5 million from New Mexico's general fund to create a permanent Rural Libraries Endowment Fund. This fund will provide ongoing financial support to public libraries in rural areas across the state. The bill directly affects rural libraries by establishing a dedicated, long-term funding source instead of relying on annual appropriations. The key mechanism is the one-time transfer of funds to ensure sustained library services in underserved communities.

SB 76 increases New Mexico's gasoline tax from 17 cents to 23 cents per gallon and raises the special fuel excise tax from 21 cents to 26 cents per gallon. This bill directly affects all consumers and businesses purchasing gasoline or special fuels in New Mexico, as it raises the cost per gallon for these products. The key change is the specific tax rate increase for both fuel types, effective July 1, 2026. The bill makes no other policy changes beyond adjusting these excise tax rates.

SB 13 extends and expands a tax deduction for healthcare providers in New Mexico. It postpones the sunset date for this deduction from 2028 to 2031 and adds coinsurance, copayments, and deductibles paid directly by patients to the list of deductible expenses. The bill affects licensed healthcare practitioners (like doctors, dentists, and therapists) and their associations who provide services through managed care organizations. These providers can now reduce their taxable income by deducting patient-paid portions of their fees, rather than just certain insurance payments. The change applies only to "commercial contract services" under managed care plans, not Medicare or Medicaid services.

HB 113, the Renewable Energy Production Tax Act, imposes a 3.75% excise tax on electricity generated from renewable sources (solar, wind, hydropower, geothermal, or qualifying biomass) at commercial facilities in New Mexico. It applies to electricity sold in the wholesale market, with tax calculated based on the monthly average wholesale price, and requires payment by the 25th of the following month. Revenue from this tax will be directed to the Severance Tax Permanent Fund, and the law exempts government entities, tribal lands, and small-scale personal use (under 500 kWh daily). The tax begins on January 1, 2027, affecting commercial renewable energy producers but not residential or exempt entities.

SB 88 creates a New Mexico income tax credit for foster parents and legal guardians caring for children. It provides a $500 monthly credit (up to $6,000 annually) for qualifying individuals who are licensed foster parents or court-appointed guardians of a child under 18. To claim the credit, applicants must get certification from the Children, Youth and Families Department, and only one credit per household is allowed per year. The credit applies to taxable years beginning January 1, 2026, and any excess credit beyond tax liability will be refunded.