GROSS RECEIPTS CREDIT FOR CERTAIN BUSINESSES

HB 237 creates a tax credit for small New Mexico businesses with gross receipts under $1 million in the previous calendar year. It allows eligible taxpayers to claim a credit equal to 25% of their state gross receipts tax liability (capped at $20,000 annually), reducing the tax they owe. Businesses must apply through the tax department and cannot claim this credit if they use other credits against the same tax. The credit applies to tax liabilities starting July 1, 2025, and unused portions can be carried forward to future years. This policy directly affects small businesses meeting the revenue threshold, providing a direct reduction in their state tax burden.