SMALL BUSINESS DISASTER RELIEF TAX CREDIT

HB 326 creates a $5,000 state income tax credit for small businesses in New Mexico that suffered significant revenue losses due to a governor-declared disaster. To qualify, businesses must have operated for two years, experienced at least a 30% drop in gross revenue from the disaster, and have under $2 million in annual revenue. Businesses must apply for certification through the Economic Development Department, which verifies eligibility before the credit can be claimed. The credit reduces tax liability directly, with any excess refunded, and applies to taxable years starting January 1, 2025.