HB 77 creates a corporate income tax credit for businesses renovating vacant buildings or lots in New Mexico that have been unoccupied for at least two years. The credit covers 30% of renovation costs for properties vacant 2-5 years (capped at $2 million per business) or 40% for properties vacant 5+ years (capped at $4 million), provided at least 15% of new housing units are affordable for low/moderate income residents (defined as ≤85% of local median income). Businesses must get pre-certification before work begins and post-completion certification, with the credit being transferable or carry-forwardable for up to five years. The credit expires in 2038, has an annual spending limit of $100 million (with $50 million reserved for non-rural areas), and applies to projects starting in 2026.
SB 133 creates a tax deduction in New Mexico for healthcare practitioners who sell equipment or non-prescription medication directly to patients during office visits. It allows deductions for items used in patient treatment (like medical devices or saline), excluding standard office furniture and computers. To offset lost local tax revenue, the bill requires municipalities and counties to receive compensation based on the total deductions claimed in their areas. The law takes effect July 1, 2026.
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.
SB 150 creates a refundable tax credit for New Mexico local news printers (businesses that manufacture/produce newspapers for local news organizations) that employ qualified staff. It allows owners to claim up to $10,000 per full-time equivalent employee ($5,000 for part-time) based on wages paid, with a total annual cap of $1 million across all credits. To qualify, news printers must have operated for at least five years, employ five or more qualified employees (who work 25%+ of the year on newspaper production in New Mexico), and meet specific content and ownership requirements. The credit is claimed through a department certification process and expires before 2031.
HB 264 creates new tax deductions for New Mexico taxpayers earning tips (based on federal Section 224), overtime pay (federal Section 225), and Social Security income (federal Section 151). It replaces the Working Families Tax Credit with a state Earned Income Tax Credit (EITC) modeled after federal rules, adds a new Foster Parent and Guardian Income Tax Credit, and expands the medical expense deduction to apply to taxpayers of all income levels. The bill also extends tax deductions for healthcare practitioners to include patient coinsurance payments. These provisions directly affect low-to-moderate income earners, tip-based workers, retirees, and foster care providers by modifying how their income is taxed under New Mexico law.
SB 89 creates a sales tax exemption for qualifying hunting and fishing supplies purchased in New Mexico between September 8 and December 31 each year. It covers specific low-cost items like fishing tackle ($5 or less individually), camping gear ($30 or less), fishing rods ($75 or less individually), and firearms/ammo, with price limits defined in the bill. This directly benefits New Mexico residents buying these items during the holiday period, as retailers can deduct these sales from their tax obligations. The exemption takes effect July 1, 2026, and excludes franchise business sales.
HB 193 creates a scholarship program allowing school tuition organizations to award financial aid to low-income students attending private schools in New Mexico, while establishing tax credits for donors. It directly affects low-income families (defined by federal lunch program income standards) who choose private schools, provided students previously attended a public or home school in New Mexico. Key mechanisms include requiring organizations to allocate 90% of funds to scholarships, prohibiting single-school restrictions, mandating annual financial reports, and requiring audits for organizations receiving $500,000+ in donations. The bill also creates individual and corporate income tax credits for contributions to these scholarship organizations, with strict transparency rules for public reporting.
SB 113 increases New Mexico's agricultural biomass tax credit from $5 to $10 per wet ton for dairy and feedlot owners who transport biomass to facilities generating electricity or biocrude fuel. It directly affects dairy and feedlot operators by allowing them to claim this credit against state income or corporate taxes for eligible biomass transportation. The bill sets a $5 million annual cap on total credits, allows unused credits to carry forward up to four years, and permits credit transfers between taxpayers. This change applies to taxable years ending before January 1, 2030, and aims to incentivize renewable energy production from agricultural waste.
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.
