HB 249 creates a New Mexico tax credit for health care practitioners who adopt digital medical records systems. It allows eligible practitioners (like physicians, nurses, and psychologists) to claim a credit equal to their payments for electronic medical records, up to $6,000 per year, if they meet specific requirements: providing at least 1,584 hours of care annually, working at a small health care institution (employing ≤10 practitioners), and maintaining payment records. The credit is non-refundable and cannot be carried forward if it exceeds tax liability, and practitioners cannot claim it if they already use a separate rural health care tax credit. The credit applies to taxable years starting January 1, 2026, through December 31, 2030.
SB 172 extends New Mexico's Technology Readiness Gross Receipts Tax Credit, allowing national laboratories operating in the state to claim tax credits for costs incurred while helping registered New Mexico businesses mature technologies developed at those labs. The credit covers qualified expenses like lab staff salaries, travel, and supplies, up to $150,000 per business annually and with annual limits per laboratory (starting at $2 million in 2026-2027 and rising to $5 million by 2029). To qualify, businesses must be registered in New Mexico and have licensed technology from the lab or participate in a cooperative research agreement with it. National laboratories must submit annual reports detailing program activities, business progress, and economic impact studies to the state tax department.
HB 145 extends the deadline for businesses to apply for New Mexico's High-Wage Jobs Tax Credit. The bill amends the existing tax code to require annual applications to be filed by December 31 of the year following the qualifying period, instead of the previous deadline. This credit allows eligible employers to claim 8.5% of wages for new high-wage jobs (capped at $12,750 per job), directly affecting businesses creating qualifying positions in New Mexico. The change simplifies the filing timeline but maintains all other eligibility rules, such as wage thresholds, occupancy requirements, and restrictions on jobs created through business mergers.
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 170 creates a tax credit for New Mexico taxpayers who donate money to licensed child care facilities serving children under 12. Individuals and businesses can claim a credit equal to their donation (up to $500,000 annually), reducing their state income tax bill or receiving a refund if the credit exceeds taxes owed. To qualify, donations must be monetary, go to facilities meeting state enrollment standards for child care subsidies, and be certified by the Early Childhood Education and Care Department. The total annual credit value across all taxpayers is capped at $10 million, with applications processed in order of receipt. This policy directly affects donors and licensed child care facilities, aiming to support child care access through tax incentives.
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.
This bill creates a $4,000 tax credit for New Mexico physicians who provide at least 1,584 hours of healthcare in the state annually. To qualify, physicians must apply for certification through the Department of Health and meet the hour requirement. Unused portions of the credit can be carried forward for up to three years. The credit applies to licensed medical and osteopathic physicians starting with tax years beginning January 1, 2026.
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 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 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.
