NMSA 1978, § 7-2A-1 Short title
7-2A-1. Short title
Chapter 7, Article 2A NMSA 1978 may be cited as the "Corporate Income and Franchise Tax Act".
1978 Comp., § 7-2A-1, enacted by Laws 1981, ch. 37, § 34; 1986, ch. 20, § 32.
Corporate Income and Franchise Tax
NMSA 1978 ch. 7, art. 2A
in effectNMSA 1978, § 7-2A-2 Definitions
7-2A-2. Definitions
For the purpose of the Corporate Income and Franchise Tax Act and unless the context requires otherwise:
A. "bank" means any national bank, national banking association, state bank or bank holding company;
B. "apportioned net income" or "apportioned net loss" means net income allocated and apportioned to New Mexico pursuant to the provisions of the Corporate Income and Franchise Tax Act or the Uniform Division of Income for Tax Purposes Act [Chapter 7, Article 4 NMSA 1978], but excluding from the sales factor any sales that represent intercompany transactions between members of the filing group;
C. "base income" means the federal taxable income or the federal net operating loss of a corporation for the taxable year calculated pursuant to the Internal Revenue Code, after special deductions provided in Sections 241 through 249 of the Internal Revenue Code but without any deduction for net operating losses, as if the corporation filed a federal tax return as a separate domestic entity, modified as follows:
(1) adding to that income:
(a) interest received on a state or local bond exempt under the Internal Revenue Code;
(b) the amount of any deduction claimed in calculating taxable income for all expenses and costs directly or indirectly paid, accrued or incurred to a captive real estate investment trust;
(c) the amount of any deduction, other than for premiums, for amounts paid directly or indirectly to a commonly controlled entity that is exempt from corporate income tax pursuant to Section 7-2A-4 NMSA 1978;
(d) for taxable years beginning on or after January 1, 2023, an amount equal to the amount of credit claimed and allowed for that year pursuant to Section 7-3A-10 NMSA 1978 with respect to the distributed net income of a pass-through entity;
(e) the amount of any deduction taken pursuant to Sections 168(k) and 168(n) of the Internal Revenue Code in excess of the deduction amount that would have been allowed by Sections 168(a) through 168(j) of the Internal Revenue Code; and
(f) the amount of additional interest deducted as a result of the changes to Subparagraph (A) of Section 163(j)(8) of the Internal Revenue Code made by Section 70303 of Public Law 119-21; provided that such interest shall be eligible for the carryforward provisions of Section 163(j)(2) of the Internal Revenue Code;
(2) subtracting from that income:
(a) income from obligations of the United States net of expenses incurred to earn that income; and
(b) other amounts that the state is prohibited from taxing because of the laws or constitution of this state or the United States net of any related expenses;
(3) making other adjustments deemed necessary to properly reflect income of the unitary group, including attribution of income or expense related to unitary assets held by related corporations that are not part of the filing group; and
(4) for a taxpayer that conducts a lawful business pursuant to the laws of this state, excludes an amount equal to any expenditure that is eligible to be claimed as a federal income tax deduction but is disallowed pursuant to Section 280E of the Internal Revenue Code, as that section may be amended or renumbered;
D. "captive real estate investment trust" means a corporation, trust or association taxed as a real estate investment trust pursuant to Section 857 of the Internal Revenue Code, the shares or beneficial interests of which are not regularly traded on an established securities market; provided that more than fifty percent of any class of beneficial interests or shares of the real estate investment trust are owned directly, indirectly or constructively by the taxpayer during all or a part of the taxpayer's taxable year;
E. "common ownership" means the direct or indirect control or ownership of more than fifty percent of the outstanding voting stock, ownership of which is determined pursuant to Section 1563 of the Internal Revenue Code, as that section may be amended or renumbered, of:
(1) a parent-subsidiary controlled group as defined in Section 1563 of the Internal Revenue Code, except that fifty percent shall be substituted for eighty percent;
(2) a brother-sister controlled group as defined in Section 1563 of the Internal Revenue Code; or
(3) three or more corporations each of which is a member of a group of corporations described in Paragraph (1) or (2) of this subsection, and one of which is:
(a) a common parent corporation included in a group of corporations described in Paragraph (1) of this subsection; and
(b) included in a group of corporations described in Paragraph (2) of this subsection;
F. "consolidated group" means the group of entities properly filing a federal consolidated return under the Internal Revenue Code for the taxable year;
G. "corporation" means corporations, joint stock companies, real estate trusts organized and operated under the Real Estate Trust Act [47-2-1 to 47-2-6 NMSA 1978], financial corporations and banks, other business associations and, for corporate income tax purposes, partnerships and limited liability companies taxed as corporations under the Internal Revenue Code;
H. "department" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;
I. "filing group" means a group of corporations properly included in a return pursuant to Section 7-2A-8.3 NMSA 1978 for a particular taxable year;
J. "fiscal year" means any accounting period of twelve months ending on the last day of any month other than December;
K. "grandfathered net operating loss carryover" means:
(1) the amount of net loss properly reported to New Mexico for taxable years beginning January 1, 2013 and prior to January 1, 2020 as part of a timely filed original return, or an amended return for those taxable years filed prior to January 1, 2020, to the extent such loss can be attributed to one or more corporations that are properly included in the taxpayer's return for the first taxable year beginning on or after January 1, 2020;
(2) reduced by:
(a) adding back deductions that were taken by the corporation or corporations for royalties or interest paid to one or more related corporations, but only to the extent that such adjustment would not create a net loss for such related corporations; and
(b) the amount of net operating loss deductions taken prior to January 1, 2020 that would be charged against those losses consistent with the Internal Revenue Code and provisions of the Corporate Income and Franchise Tax Act applicable to the year of the deduction; and
(3) apportioned to New Mexico using the apportionment factors that can properly be attributed to the corporation or corporations for the year of the net loss;
L. "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended;
M. "net income" means:
(1) the base income of a corporation properly filing a tax return as a separate entity; or
(2) the combined base income and losses of corporations that are part of a filing group that is computed after eliminating intercompany income and expense in a manner consistent with the consolidated filing requirements of the Internal Revenue Code and the Corporate Income and Franchise Tax Act;
N. "net operating loss carryover" means the apportioned net loss properly reported on an original or amended tax return for taxable years beginning on or after January 1, 2020 by the taxpayer:
(1) plus:
(a) the portion of an apportioned net loss properly reported to New Mexico for a taxable year beginning on or after January 1, 2020, on a separate year return, to the extent the taxpayer would have been entitled to include the portion of such apportioned net loss in the taxpayer's consolidated net operating loss carryforward under the Internal Revenue Code if the taxpayer filed a consolidated federal return; and
(b) the taxpayer's grandfathered net operating loss carryover; and
(2) minus:
(a) the amount of the net operating loss carryover attributed to an entity that has left the filing group, computed in a manner consistent with the consolidated filing requirements of the Internal Revenue Code and applicable regulations, as if the taxpayer were filing a consolidated return; and
(b) the amount of net operating loss deductions properly taken by the taxpayer;
O. "net operating loss deduction" means the portion of the net operating loss carryover that may be deducted from the taxpayer's apportioned net income under the Internal Revenue Code as of January 1, 2018 for the taxable year in which the deduction is taken, including the eighty percent limitation of Section 172(a) of the Internal Revenue Code as of January 1, 2018 calculated on the basis of the taxpayer's apportioned net income;
P. "person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, limited liability company, joint venture, syndicate or other association; "person" also means, to the extent permitted by law, any federal, state or other governmental unit or subdivision or agency, department or instrumentality thereof;
Q. "real estate investment trust" has the meaning ascribed to the term in Section 856 of the Internal Revenue Code, as that section may be amended or renumbered;
R. "related corporation" means a corporation that is under common ownership with one or more corporations but that is not included in the same tax return;
S. "return" means any tax or information return, including a water's-edge or worldwide combined return, a consolidated return, a declaration of estimated tax or a claim for refund, including any amendments or supplements to the return, required or permitted pursuant to a law subject to administration and enforcement pursuant to the Tax Administration Act [Chapter 7, Article 1 NMSA 1978] and filed with the department by or on behalf of any person;
T. "secretary" means the secretary of taxation and revenue or the secretary's delegate;
U. "separate year return" means a properly filed original or amended return for a taxable year beginning on or after January 1, 2020 by a taxpayer reporting a loss, a portion of which is claimed as part of the net operating loss carryover by another taxpayer in a subsequent return period;
V. "state" means any state of the United States, the District of Columbia, the commonwealth of Puerto Rico, any territory or possession of the United States or political subdivision thereof or any political subdivision of a foreign country;
W. "state or local bond" means a bond issued by a state other than New Mexico or by a local government other than one of New Mexico's political subdivisions, the interest from which is excluded from income for federal income tax purposes under Section 103 of the Internal Revenue Code, as that section may be amended or renumbered;
X. "taxable income" means a taxpayer's apportioned net income minus the net operating loss deduction for the taxable year;
Y. "taxable year" means the calendar year or fiscal year upon the basis of which the net income is computed under the Corporate Income and Franchise Tax Act and includes, in the case of the return made for a fractional part of a year under the provisions of that act, the period for which the return is made;
Z. "taxpayer" means any corporation or group of corporations filing a return pursuant to Section 7-2A-8.3 NMSA 1978 subject to the taxes imposed by the Corporate Income and Franchise Tax Act;
AA. "unitary group" means a group of two or more corporations, including a captive real estate investment trust, but not including an S corporation, an insurance company subject to the provisions of the New Mexico Insurance Code [Chapter 59A NMSA 1978, except for Articles 30A and 42A], an insurance company that would be subject to the New Mexico Insurance Code if the insurance company engaged in business in this state or a real estate investment trust that is not a captive real estate investment trust, that are:
(1) related through common ownership; and
(2) economically interdependent with one another as demonstrated by the following factors:
(a) centralized management;
(b) functional integration; and
(c) economies of scale;
BB. "water's-edge group" means all corporations that are part of a unitary group, except:
(1) corporations that are exempt from corporate income tax pursuant to Section 7-2A-4 NMSA 1978; and
(2) corporations organized or incorporated outside the United States or its possessions or territories that have less than twenty percent of their property, payroll and sales sourced to locations within the United States, following the sourcing rules of the Uniform Division of Income for Tax Purposes Act [Chapter 7, Article 4 NMSA 1978]; and
CC. "worldwide combined group" means all members of a unitary group, except members that are exempt from corporate income tax pursuant to Section 7-2A-4 NMSA 1978, irrespective of the country in which the corporations are incorporated or conduct business activity.
1978 Comp., § 7-2A-2, enacted by Laws 1986, ch. 20, § 33; 1991, ch. 9, § 25; 1993, ch. 307, § 3; 1993, ch. 309, § 1; 1995, ch. 11, § 5; 1999, ch. 47, § 6; 2014, ch. 53, § 2; 2017, ch. 95, § 1; 2019, ch. 270, § 16; 2020 (1st S.S.), ch. 4, § 2; 2021 (1st S.S.), ch. 4, § 52; 2023, ch. 85, § 8; 2024, ch. 67, § 37; 2026, ch. 69, § 1.
NMSA 1978, § 7-2A-3 Imposition and levy of taxes
7-2A-3. Imposition and levy of taxes
A. A tax to be known as the "corporate income tax" is imposed at the rate specified in the Corporate Income and Franchise Tax Act upon the taxable income of a corporation or group of corporations, in whatever jurisdiction organized or incorporated, that is engaged in the transaction of business in, into or from this state or deriving any income from any property or employment within this state.
B. A tax to be known as the "corporate franchise tax" is imposed in the amount specified in the Corporate Income and Franchise Tax Act upon every domestic corporation and upon every foreign corporation employed or engaged in the transaction of business in, into or from this state or deriving any income from any property or employment within this state and upon every domestic or foreign corporation, whether engaged in active business or not, but having or exercising its corporate franchise in this state.
1978 Comp., § 7-2A-3, enacted by Laws 1981, ch. 37, § 36; 1986, ch. 20, § 34; 2019, ch. 270, § 17.
NMSA 1978, § 7-2A-4 Exemptions
7-2A-4. Exemptions
No corporate income or franchise tax shall be imposed upon:
A. insurance companies, reciprocal or inter-insurance exchanges which pay a premium tax to the state;
B. a trust organized or created in the United States and forming part of a stock bonus, pension or profit-sharing plan of an employer for the exclusive benefit of his employees or their beneficiaries, which trust is exempt from taxation under the provisions of the Internal Revenue Code; or
C. religious, educational, benevolent or other organizations not organized for profit which are exempt from income taxation under the Internal Revenue Code unless the organization receives income which is subject to federal income taxation as "unrelated business income" under the Internal Revenue Code, in which case the organization is subject to the corporate franchise tax, and the corporate income tax applies to the unrelated business income.
1978 Comp., § 7-2A-4, enacted by Laws 1981, ch. 37, § 37; 1986, ch. 20, § 35; 1989, ch. 111, § 1.
NMSA 1978, § 7-2A-5 Corporate income tax rates
7-2A-5. Corporate income tax rates
The corporate income tax imposed on corporations by Section 7-2A-3 NMSA 1978 shall be five and nine-tenths percent of taxable income.
1978 Comp., § 7-2A-5, enacted by Laws 1981, ch. 37, § 38; 1981, ch. 176, § 1; 1983, ch. 213, § 8; 1986, ch. 20, § 36; 1987, ch. 277, § 5; 2013, ch. 160, § 3; 2019, ch. 270, § 18; 2024, ch. 67, § 10.
NMSA 1978, § 7-2A-5.1 Corporate franchise tax amount
7-2A-5.1. Corporate franchise tax amount
The corporate franchise tax amount imposed on a corporation by Section 7-2A-3 NMSA 1978 shall be fifty dollars ($50.00) per taxable year or any fraction thereof.
Laws 1986, ch. 20, § 37; 1992, ch. 78, § 3.
NMSA 1978, § 7-2A-6 Tax computation; alternative method
7-2A-6. Tax computation; alternative method
For those taxpayers who do not compute an amount upon which the federal income tax is calculated or who do not compute their federal income tax payable for the taxable year, the secretary shall prescribe such regulations or instructions as he may deem necessary to enable them to compute their corporate income tax due.
1978 Comp., § 7-2A-6, enacted by Laws 1981, ch. 37, § 39; 1986, ch. 20, § 38.
NMSA 1978, § 7-2A-7 Taxes applied to corporations on federal areas
7-2A-7. Taxes applied to corporations on federal areas
To the extent permitted by law, no corporation shall be relieved from liability for corporate income tax or corporate franchise tax by reason of receiving income from transactions occurring or work or services performed within a federal area.
1978 Comp., § 7-2A-7, enacted by Laws 1981, ch. 37, § 40; 1986, ch. 20, § 39.
NMSA 1978, § 7-2A-8.3 Combined and consolidated returns
7-2A-8.3. Combined and consolidated returns
A. Corporations that are part of a unitary group shall file a return properly reporting and paying tax on taxable income as a worldwide combined group unless they properly elect to report and pay tax on taxable income as a water's-edge or consolidated group, pursuant to department rules and instructions, on the first original return required to be filed for taxable years beginning on or after January 1, 2020. Corporations electing to file a consolidated return must file on that same basis for federal income tax purposes. Once a unitary or consolidated group has properly made an election to file as a water's-edge or consolidated group, the group and any of the group's members shall file a return on that basis for at least seven consecutive years unless the secretary grants permission otherwise. Corporations that are part of a unitary group filing a return are jointly and severally liable for the tax imposed pursuant to the Corporate Income and Franchise Tax Act on taxable income.
B. Corporations required to file a return as part of a filing group pursuant to this section may designate a member of the group to act as the principal corporation to file the return, make any elections, claim tax credits or refunds or perform any other act on behalf of the group with respect to the corporate income tax; provided that the members of the group remain jointly and severally liable for the taxes due pursuant to Subsection A of this section.
1978 Comp., § 7-2A-8.3, enacted by Laws 1983, ch. 213, § 12; 1986, ch. 20, § 43; 1993, ch. 307, § 4; 1993, ch. 309, § 2; 2013, ch. 160, § 4; 2019, ch. 270, § 19.
NMSA 1978, § 7-2A-8.6 Credit for preservation of cultural property; corporate income tax credit
7-2A-8.6. Credit for preservation of cultural property; corporate income tax credit
A. Tax credits for the preservation of cultural property may be claimed as follows:
(1) to encourage the restoration, rehabilitation and preservation of cultural properties, a taxpayer that files a corporate income tax return and that is the owner of a cultural property listed on the official New Mexico register of cultural properties, with its consent, may claim a credit not to exceed twenty-five thousand dollars ($25,000) in an amount equal to one-half of the cost of restoration, rehabilitation or preservation of the cultural property; or
(2) if a cultural property, whose owner may otherwise claim the credit set forth in Paragraph (1) of this subsection is also located within an arts and cultural district designated by the state or a municipality pursuant to the Arts and Cultural District Act [15-5A-1 to 15-5A-7 NMSA 1978], the owner of that cultural property may claim a credit not to exceed fifty thousand dollars ($50,000), including any credit claimed pursuant to Paragraph (1) of this subsection, in an amount equal to one-half of the cost of restoration, rehabilitation or preservation of the cultural property.
B. The taxpayer may claim the credit if:
(1) it submitted a plan and specifications for restoration, rehabilitation or preservation to the committee and received approval from the committee for the plan and specifications prior to commencement of the restoration, rehabilitation or preservation;
(2) it received certification from the committee after completing the restoration, rehabilitation or preservation, or committee-approved phase, that it conformed to the plan and specifications and preserved and maintained those qualities of the property that made it eligible for inclusion in the official register; and
(3) the project is completed within twenty-four months of the date the project is approved by the committee in accordance with Paragraph (1) of this subsection.
C. A taxpayer may claim the credit provided in this section for each taxable year in which preservation, restoration or rehabilitation is carried out. Claims for the credit provided in this section shall be limited to three consecutive years, and the maximum aggregate credit allowable shall not exceed twenty-five thousand dollars ($25,000) if governed by Paragraph (1) of Subsection A of this section, or fifty thousand dollars ($50,000) if governed by Paragraph (2) of Subsection A of this section, for any single restoration, rehabilitation or preservation project certified by the committee for any cultural property listed on the official New Mexico register. No single project may extend beyond a period of more than two years.
D. A taxpayer who otherwise qualifies and claims a credit on a restoration, rehabilitation or preservation project on property owned by a partnership of which the taxpayer is a member may claim a credit only in proportion to the taxpayer's interest in the partnership. The total credit claimed by all members of the partnership shall not exceed twenty-five thousand dollars ($25,000) if governed by Paragraph (1) of Subsection A of this section, or fifty thousand dollars ($50,000) if governed by Paragraph (2) of Subsection A of this section, in the aggregate for any single restoration, preservation or rehabilitation project for any cultural property listed on the official New Mexico register approved by the committee.
E. The credit provided in this section may only be deducted from the taxpayer's corporate income tax liability. Any portion of the maximum tax credit provided by this section that remains unused at the end of the taxpayer's taxable year may be carried forward for four consecutive years; provided, however, the total tax credits claimed under this section shall not exceed twenty-five thousand dollars ($25,000) if governed by Paragraph (1) of Subsection A of this section, or fifty thousand dollars ($50,000) if governed by Paragraph (2) of Subsection A of this section, for any single restoration, rehabilitation or preservation project for any cultural property listed on the official New Mexico register.
F. The historic preservation division shall promulgate regulations for the implementation of this section.
G. As used in this section:
(1) "committee" means the cultural properties review committee created in Section 18-6-4 NMSA 1978; and
(2) "historic preservation division" means the historic preservation division of the cultural affairs department created in Section 18-6-8 NMSA 1978.
1978 Comp., § 7-2A-8.6, enacted by Laws 1984, ch. 34, § 2; 1986, ch. 20, § 46; 2007, ch. 160, § 15.
NMSA 1978, § 7-2A-8.9 Tax credit; certain conveyances of real property
7-2A-8.9. Tax credit; certain conveyances of real property
A. There shall be allowed as a credit against the tax liability imposed by the Corporate Income and Franchise Tax Act an amount equal to fifty percent of the fair market value of land or interest in land that is conveyed for the purpose of open space, natural resource or biodiversity conservation, agricultural preservation or watershed or historic preservation as an unconditional donation in perpetuity by the landowner or taxpayer to a public or private conservation agency eligible to hold the land and interests therein for conservation or preservation purposes. The fair market value of qualified donations made pursuant to this section shall be substantiated by a "qualified appraisal" prepared by a "qualified appraiser", as those terms are defined under applicable federal laws and regulations governing charitable contributions.
B. The amount of the credit that may be claimed by a taxpayer shall not exceed one hundred thousand dollars ($100,000) for a conveyance made prior to January 1, 2008 and shall not exceed two hundred fifty thousand dollars ($250,000) for a conveyance made on or after that date. In addition, in a taxable year the credit used may not exceed the amount of corporate income tax otherwise due. A portion of the credit that is unused in a taxable year may be carried over for a maximum of twenty consecutive taxable years following the taxable year in which the credit originated until fully expended. A taxpayer may claim only one tax credit per taxable year.
C. Qualified donations shall include the conveyance in perpetuity of a fee interest in real property or a less-than-fee interest in real property, such as a conservation restriction, preservation restriction, agricultural preservation restriction or watershed preservation restriction, pursuant to the Land Use Easement Act [47-12-1 to 47-12-6 NMSA 1978]; provided that the less-than-fee interest qualifies as a charitable contribution deduction under Section 170(h) of the Internal Revenue Code. Dedications of land for open space for the purpose of fulfilling density requirements to obtain subdivision or building permits shall not be considered as qualified donations pursuant to the Land Conservation Incentives Act [75-9-1 to 75-9-6 NMSA 1978].
D. Qualified donations shall be eligible for the tax credit if the donations are made to the state of New Mexico, a political subdivision thereof or a charitable organization described in Section 501(c)(3) of the Internal Revenue Code and that meets the requirements of Section 170(h)(3) of that code.
E. To be eligible for treatment as qualified donations under this section, land or interests in lands must be certified by the secretary of energy, minerals and natural resources as fulfilling the purposes as set forth in Section 5-9-2 NMSA 1978. The use and protection of the lands, or interests therein, for open space, natural area protection, biodiversity habitat conservation, land preservation, agricultural preservation, historic preservation or similar use or purpose of the property shall be assured in perpetuity.
F. A taxpayer may apply for certification of eligibility for the tax credit provided by this section from the energy, minerals and natural resources department. If the energy, minerals and natural resources department determines that the application meets the requirements of this section and that the property conveyed will not adversely affect the property rights of contiguous landowners, it shall issue a certificate of eligibility to the taxpayer, which shall include a calculation of the maximum amount of tax credit for which the taxpayer would be eligible. The energy, minerals and natural resources department may issue rules governing the procedure for administering the provisions of this subsection.
G. To receive a credit pursuant to this section, a person shall apply to the taxation and revenue department on forms and in the manner prescribed by the department. The application shall include a certificate of eligibility issued by the energy, minerals and natural resources department pursuant to Subsection F of this section. If all of the requirements of this section have been complied with, the taxation and revenue department shall issue to the applicant a document granting the tax credit. The document shall be numbered for identification and declare its date of issuance and the amount of the tax credit allowed for the qualified donation made pursuant to this section.
H. The tax credit represented by a document issued pursuant to Subsection G of this section for a conveyance made on or after January 1, 2008, or an increment of that tax credit, may be sold, exchanged or otherwise transferred, and may be carried forward for a period of twenty taxable years following the taxable year in which the credit originated until fully expended. A tax credit or increment of a tax credit may only be transferred once. The credit may be transferred to any taxpayer. A taxpayer to whom a credit has been transferred may use the credit for the taxable year in which the transfer occurred and unused amounts may be carried forward to succeeding taxable years, but in no event may the transferred credit be used more than twenty years after it was originally issued.
I. A tax credit issued pursuant to this section shall be transferred through a qualified intermediary. The qualified intermediary shall, by means of a sworn notarized statement, notify the taxation and revenue department of the transfer and of the date of the transfer within ten days of the transfer. Credits shall only be transferred in increments of ten thousand dollars ($10,000) or more. The qualified intermediary shall keep an account of the credits and have the authority to issue sub-numbers registered with the taxation and revenue department and traceable to the original credit.
J. If a charitable deduction is claimed on the taxpayer's federal income tax for any contribution for which the credit provided by this section is claimed, the taxpayer's itemized deductions for New Mexico income tax shall be reduced by the amount of the deduction for the contribution in order to determine the New Mexico taxable income of the taxpayer.
K. For the purposes of this section:
(1) "qualified intermediary" does not include a person who has been previously convicted of a felony, who has had a professional license revoked, who is engaged in the practice defined in Section 61-28B-3 NMSA 1978 and who is identified in Section 61-29-2 NMSA 1978, and does not include any entity owned wholly or in part or employing any of the foregoing persons; and
(2) "taxpayer" means a citizen or resident of the United States, a domestic partnership, a limited liability company, a domestic corporation, an estate, including a foreign estate, or a trust.
1978 Comp., § 7-2A-8.9, enacted by Laws 2003, ch. 331, § 8; 2007, ch. 335, § 2.
NMSA 1978, § 7-2A-9 Taxpayer returns; payment of tax
7-2A-9. Taxpayer returns; payment of tax
A. Every corporation deriving income from any business transaction, property or employment within this state, that is not exempt from tax under the Corporate Income and Franchise Tax Act and that is required by the laws of the United States to file a federal income tax return shall file a complete tax return with the department in form and content as prescribed by the secretary. A corporation that is required by the provisions of the Corporate Income and Franchise Tax Act to file a return or pay a tax shall, on or before the due date of the corporation's federal corporate income tax return for the taxable year, file the return and pay the tax imposed for that year.
B. Every domestic or foreign corporation that is not exempt from tax under the Corporate Income and Franchise Tax Act, that is employed or engaged in the transaction of business in, into or from this state or that derives any income from property or employment within this state and every domestic or foreign corporation, regardless of whether it is engaged in active business, that has or exercises its corporate franchise in this state and that is not exempt from tax under the Corporate Income and Franchise Tax Act shall file a return in the form and content as prescribed by the secretary and pay the tax levied pursuant to Subsection B of Section 7-2A-3 NMSA 1978 in the amount for each corporation as specified in Section 7-2A-5.1 NMSA 1978. Returns and payment of tax for corporate franchise tax for a taxable year shall be filed and paid on the date specified in Subsection A of this section for payment of corporate income tax for the preceding taxable year.
1978 Comp., § 7-2A-9, enacted by Laws 1981, ch. 37, § 42; 1986, ch. 20, § 47; 1989, ch. 111, § 2; 2015 (1st S.S.), ch. 2, § 4; 2016, ch. 15, § 2; 2025, ch. 130, § 54.
NMSA 1978, § 7-2A-9.1 Estimated tax due; payment of estimated tax; penalty; exemption
7-2A-9.1. Estimated tax due; payment of estimated tax; penalty; exemption
A. Every taxpayer shall pay estimated corporate income tax to the state of New Mexico during its taxable year if its tax after applicable credits is five thousand dollars ($5,000) or more in the current taxable year. A taxpayer to which this section applies shall calculate estimated tax by one of the following methods:
(1) estimating the amount of tax due, net of any credits, for the current taxable year, provided that the estimated amount is at least eighty percent of the amount determined to be due for the taxable year;
(2) using as the estimate an amount equal to one hundred percent of the tax due for the previous taxable year, if the previous taxable year was a full twelve-month year;
(3) using as the estimate an amount equal to one hundred ten percent of the tax due for the taxable year immediately preceding the previous taxable year, if the taxable year immediately preceding the previous taxable year was a full twelve-month year and the return for the previous taxable year has not been filed and the extended due date for filing that return has not occurred at the time the first installment is due for the taxable year; or
(4) estimating the amount of tax due, net of any credits, for each fiscal quarter of the current taxable year, provided that the estimated amount is at least eighty percent of the amount determined to be due for that quarter.
B. If Subsection A of this section applies, the amount of estimated tax shall be paid in installments as provided in this subsection. Twenty-five percent of the estimated tax calculated under Paragraph (1), (2) or (3) of Subsection A of this section or one hundred percent of the estimated tax calculated under Paragraph (4) of Subsection A of this section is due on or before the following dates: the fifteenth day of the fourth month of the taxable year, the fifteenth day of the sixth month of the taxable year, the fifteenth day of the ninth month of the taxable year and the fifteenth day of the twelfth month of the taxable year. Application of this subsection to a taxable year that is a fractional part of a year shall be determined by regulation of the secretary.
C. Every taxpayer to which Subsection A of this section applies that fails to pay the estimated tax when due or that makes estimated tax payments during the taxable year that are less than the lesser of eighty percent of the income tax imposed on the taxpayer under the Corporate Income and Franchise Tax Act or the amount required by Paragraph (2), (3) or (4) of Subsection A of this section shall be subject to the interest and penalty provisions of Sections 7-1-67 and 7-1-69 NMSA 1978 on the underpayment.
D. For purposes of this section, the amount of underpayment shall be the excess of the amount of the installment that would be required to be paid if the estimated tax were equal to eighty percent of the tax shown on the return for the taxable year or the amount required by Paragraph (2), (3) or (4) of Subsection A of this section or, if no return was filed, eighty percent of the tax for the taxable year for which the estimated tax is due less the amount, if any, of the installment paid on or before the last date prescribed for payment.
E. For purposes of this section, the period of underpayment shall run from the date the installment was required to be paid to whichever of the following dates is earlier:
(1) the fifteenth day of the third month following the end of the taxable year; or
(2) with respect to any portion of the underpayment, the date on which such portion is paid. For the purposes of this paragraph, a payment of estimated tax on any installment date shall be applied as a payment of any previous underpayment only to the extent such payment exceeds the amount of the installment determined under Subsection D of this section due on such installment date.
F. For the purposes of this section, the amount of tax deducted and withheld with respect to a taxpayer under the Withholding Tax Act [Chapter 7, Article 3 NMSA 1978] or the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act [Chapter 7, Article 3A NMSA 1978] shall be deemed a payment of estimated tax. An equal amount of the amount of withheld tax shall be deemed paid on each due date for the applicable taxable year unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case the amounts withheld shall be deemed payments of estimated tax on the dates on which the amounts were actually withheld. The taxpayer may apply the provisions of this subsection separately to amounts withheld under the Withholding Tax Act or the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act. Amounts of tax paid by taxpayers pursuant to Section 7-3A-3 NMSA 1978 shall not be deemed a payment of estimated tax.
1978 Comp., § 7-2A-9.1, enacted by Laws 1986, ch. 5, § 1; 1990, ch. 49, § 13; 1992, ch. 78, § 4; 1995, ch. 11, § 7; 1997, ch. 60, § 1; 2003, ch. 86, § 2; 2003, ch. 295, § 1; 2009, ch. 4, § 1; 2010, ch. 53, § 2.
NMSA 1978, § 7-2A-9.2 Limitation on claiming of credits and tax rebates
7-2A-9.2. Limitation on claiming of credits and tax rebates
A credit or tax rebate provided in the Corporate Income and Franchise Tax Act that is claimed shall be disallowed if the claim for the credit or tax rebate was first made after the end of the third calendar year following the calendar year in which the return upon which the credit or rebate was first claimable was initially due.
1978 Comp., § 7-2A-9.2, enacted by Laws 1990, ch. 23, § 2.
NMSA 1978, § 7-2A-10 Information returns
7-2A-10. Information returns
A. Pursuant to regulation, the secretary may require any person doing business in this state and making payments in the course of business to another person to file information returns with the department.
B. The provisions of this section also apply to payments made by the state of New Mexico, by the governing bodies of any political subdivision of the state of New Mexico, by any agency, department or instrumentality of the state or of any political subdivision thereof and, to the extent permitted by law or pursuant to any agreement entered into by the secretary, to payments made by any other governmental body or by an agency, department or instrumentality thereof.
1978 Comp., § 7-2A-10, enacted by Laws 1981, ch. 37, § 43; 1983, ch. 213, § 14; 1986, ch. 20, § 48.
NMSA 1978, § 7-2A-11 Accounting methods
7-2A-11. Accounting methods
A taxpayer shall use the same accounting methods for reporting income for corporate income tax purposes as are used in reporting income for federal income tax purposes.
1978 Comp., § 7-2A-11, enacted by Laws 1981, ch. 37, § 44; 1986, ch. 20, § 49.
NMSA 1978, § 7-2A-12 Fiscal years permitted
7-2A-12. Fiscal years permitted
Any corporation which files income tax returns under the Internal Revenue Code on the basis of a fiscal year shall report income under the Corporate Income and Franchise Tax Act on the same basis.
1978 Comp., § 7-2A-12, enacted by Laws 1981, ch. 37, § 45; 1986, ch. 20, § 50.
NMSA 1978, § 7-2A-13 Administration
7-2A-13. Administration
The Corporate Income and Franchise Tax Act shall be administered pursuant to the provisions of the Tax Administration Act [Chapter 7, Article 1 NMSA 1978].
1978 Comp., § 7-2A-13, enacted by Laws 1981, ch. 37, § 46; 1986, ch. 20, § 51.
NMSA 1978, § 7-2A-16 Intergovernmental business tax credit
7-2A-16. Intergovernmental business tax credit
A. With respect to the net income of a taxpayer engaged in the transaction of business occurring after July 1, 1997 from a new business on Indian land, the person who is liable for the payment of the corporate income tax may claim a credit as provided in Subsection D of this section against the corporate income tax for the aggregate amount of tax paid to an Indian nation, tribe or pueblo located in whole or in part within New Mexico.
B. The credit provided by this section may be referred to as the "intergovernmental business tax credit".
C. As used in this section:
(1) "aggregate amount of tax" means the total of all taxes imposed by an Indian nation, tribe or pueblo located in whole or in part in New Mexico on income derived from the new business's activity on Indian land, except a tax shall not be included in that total if the tax is eligible for a credit pursuant to the provisions of Section 7-29C-1 NMSA 1978 or any other intergovernmental tax credit that provides a similar tax credit;
(2) "Indian land" means all land in New Mexico that on March 1, 1997 was:
(a) within the exterior boundaries of an Indian reservation or pueblo grant; or
(b) lands held in trust by the United States for an individual Indian nation, tribe or pueblo;
(3) "new business" means a manufacturer or processor that occupies a new business facility or a grower that commences operation in New Mexico on or after July 1, 1997; and
(4) "new business facility" means a facility on Indian land that satisfies the following requirements:
(a) the facility is employed by the taxpayer in the operation of a revenue-producing enterprise. The facility shall not be considered a "new business facility" in the hands of the taxpayer if the taxpayer's only activity with respect to the facility is to lease it to another person;
(b) the facility is acquired by or leased to the taxpayer on or after January 1, 1997. The facility shall be deemed to have been acquired by or leased to the taxpayer on or after the specified date if the transfer of title to the taxpayer, the transfer of possession pursuant to a binding contract to transfer title to the taxpayer or the commencement of the term of the lease to the taxpayer occurs on or after that date or if the facility is constructed, erected or installed by or on behalf of the taxpayer, the construction, erection or installation is completed on or after that date;
(c) the facility is a newly acquired facility in which the taxpayer is not continuing the operation of the same or a substantially identical revenue-producing enterprise that previously was in operation on the Indian land of the Indian nation, tribe or pueblo where the facility is now located; a facility is a "newly acquired facility" if the facility was acquired or leased by the taxpayer from another person even if the facility was employed in a revenue-producing enterprise on the Indian land of the same Indian nation, tribe or pueblo immediately prior to the transfer of the title to the facility to the taxpayer or immediately prior to the commencement of the term of the lease of the facility to the taxpayer by another person provided that the revenue-producing enterprise of the previous occupant was not the same or substantially identical to the taxpayer's revenue-producing enterprise; and
(d) the facility is not a replacement business facility for a business facility that existed on the Indian land of the Indian nation, tribe or pueblo where the business is now located.
D. The intergovernmental business tax credit shall be determined separately for each reporting period and shall be equal to fifty percent of the lesser of:
(1) the aggregate amount of tax paid by a taxpayer; or
(2) the amount of the taxpayer's corporate income tax due for the reporting period from the new business's activity conducted on Indian land.
E. The department shall administer and interpret the provisions of this section in accordance with the provisions of the Tax Administration Act [Chapter 7, Article 1 NMSA 1978].
F. The burden of showing entitlement to a credit authorized by this section is on the taxpayer claiming it, and the taxpayer shall furnish to the appropriate tax collecting agency, in the manner determined by the department, proof of payment of the aggregate amount of tax on which the credit is based.
G. For a taxpayer qualifying for the credit provided by this section that conducts business in New Mexico both on and off Indian land, the taxpayer's corporate income tax liability derived from the new business activity conducted on Indian land shall be equal to the sum of the products of one-half of the taxpayer's New Mexico corporate income tax liability before application of the credit provided by this section multiplied by the payroll factor and one-half of the taxpayer's New Mexico corporate income tax liability before application of the credit provided by this section multiplied by the property factor. The factors shall be determined as follows:
(1) the payroll factor is a fraction, the numerator of which is the amount of compensation paid to employees employed during the tax period by the taxpayer in his new business on Indian land, and the denominator of which is the total amount of compensation paid to employees employed during the tax period by the taxpayer in all of New Mexico, including Indian land; and
(2) the property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in the new business on Indian land in New Mexico during the tax period and the denominator of which is the average value of all the taxpayer's real and tangible property owned or rented and used in New Mexico, including on Indian land, during the tax period.
Laws 1997, ch. 58, § 1.
NMSA 1978, § 7-2A-19 Renewable energy production tax credit; limitations; definitions; claiming the credit
7-2A-19. Renewable energy production tax credit; limitations; definitions; claiming the credit
A. The tax credit provided in this section may be referred to as the "renewable energy production tax credit". The tax credit provided in this section may not be claimed with respect to the same electricity production for which the renewable energy production tax credit provided in the Income Tax Act [Chapter 7, Article 2 NMSA 1978] has been claimed.
B. A person is eligible for the renewable energy production tax credit if the person:
(1) holds title to a qualified energy generator that first produced electricity on or before January 1, 2018; or
(2) leases property upon which a qualified energy generator operates from a county or municipality under authority of an industrial revenue bond and if the qualified energy generator first produced electricity on or before January 1, 2018.
C. The amount of the tax credit shall equal one cent ($.01) per kilowatt-hour of the first four hundred thousand megawatt-hours of electricity produced by the qualified energy generator in the taxable year using a wind- or biomass-derived qualified energy resource; provided that the total amount of tax credits claimed by all taxpayers for a single qualified energy generator using a wind- or biomass-derived qualified energy resource shall not exceed one cent ($.01) per kilowatt-hour of the first four hundred thousand megawatt-hours of electricity produced by the qualified energy generator in a taxable year.
D. The amount of the tax credit for electricity produced by a qualified energy generator in the taxable year using a solar-light-derived or solar-heat-derived qualified energy resource shall be at the amounts specified in Paragraphs (1) through (11) of this subsection; provided that the total amount of tax credits claimed by all taxpayers in a taxable year for a single qualified energy generator using a solar-light-derived or solar-heat-derived qualified energy resource shall be limited to the first two hundred thousand megawatt-hours of electricity produced by the qualified energy generator in the taxable year:
(1) one and one-half cents ($.015) per kilowatt-hour in the first taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;
(2) two cents ($.02) per kilowatt-hour in the second taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;
(3) two and one-half cents ($.025) per kilowatt-hour in the third taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;
(4) three cents ($.03) per kilowatt-hour in the fourth taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;
(5) three and one-half cents ($.035) per kilowatt-hour in the fifth taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;
(6) four cents ($.04) per kilowatt-hour in the sixth taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;
(7) three and one-half cents ($.035) per kilowatt-hour in the seventh taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;
(8) three cents ($.03) per kilowatt-hour in the eighth taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;
(9) two and one-half cents ($.025) per kilowatt-hour in the ninth taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;
(10) two cents ($.02) per kilowatt-hour in the tenth taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource; and
(11) one and one-half cents ($.015) per kilowatt-hour in the eleventh taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource.
E. A taxpayer eligible for a renewable energy production tax credit pursuant to Subsection B of this section shall be eligible for the renewable energy production tax credit for one hundred twenty consecutive months, beginning on the date the qualified energy generator begins producing electricity.
F. As used in this section:
(1) "biomass" means organic material that is available on a renewable or recurring basis, including:
(a) forest-related materials, including mill residues, logging residues, forest thinnings, slash, brush, low-commercial-value materials or undesirable species, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds and woody material harvested for the purpose of forest fire fuel reduction or forest health and watershed improvement;
(b) agricultural-related materials, including orchard trees, vineyard, grain or crop residues, including straws and stover, aquatic plants and agricultural processed co-products and waste products, including fats, oils, greases, whey and lactose;
(c) animal waste, including manure and slaughterhouse and other processing waste;
(d) solid woody waste materials, including landscape or right-of-way tree trimmings, rangeland maintenance residues, waste pallets, crates and manufacturing, construction and demolition wood wastes, excluding pressure-treated, chemically treated or painted wood wastes and wood contaminated with plastic;
(e) crops and trees planted for the purpose of being used to produce energy;
(f) landfill gas, wastewater treatment gas and biosolids, including organic waste byproducts generated during the wastewater treatment process; and
(g) segregated municipal solid waste, excluding tires and medical and hazardous waste;
(2) "qualified energy generator" means an electric generating facility with at least one megawatt generating capacity located in New Mexico that produces electricity using a qualified energy resource and the electricity produced is sold to an unrelated person; and
(3) "qualified energy resource" means a resource that generates electrical energy by means of a fluidized bed technology or similar low-emissions technology or a zero-emissions generation technology that has substantial long-term production potential and that uses only the following energy sources:
(a) solar light;
(b) solar heat;
(c) wind; or
(d) biomass.
G. A person that holds title to a facility generating electricity from a qualified energy resource or a person that leases such a facility from a county or municipality pursuant to an industrial revenue bond may request certification of eligibility for the renewable energy production tax credit from the energy, minerals and natural resources department, which shall determine if the facility is a qualified energy generator. The energy, minerals and natural resources department may certify the eligibility of an energy generator only if the total amount of electricity that may be produced annually by all qualified energy generators that are certified pursuant to this section and pursuant to the Income Tax Act will not exceed a total of two million megawatt-hours plus an additional five hundred thousand megawatt-hours produced by qualified energy generators using a solar-light-derived or solar-heat-derived qualified energy resource. Applications shall be considered in the order received. The energy, minerals and natural resources department may estimate the annual power-generating potential of a generating facility for the purposes of this section. The energy, minerals and natural resources department shall issue a certificate to the applicant stating whether the facility is an eligible qualified energy generator and the estimated annual production potential of the generating facility, which shall be the limit of that facility's energy production eligible for the tax credit for the taxable year. The energy, minerals and natural resources department may issue rules governing the procedure for administering the provisions of this subsection and shall report annually to the appropriate interim legislative committee information that will allow the legislative committee to analyze the effectiveness of the renewable energy production tax credit, including the identity of qualified energy generators, the energy production means used, the amount of energy produced by those qualified energy generators and whether any applications could not be approved due to program limits.
H. A taxpayer may be allocated all or a portion of the right to claim a renewable energy production tax credit without regard to proportional ownership interest if:
(1) the taxpayer owns an interest in a business entity that is taxed for federal income tax purposes as a partnership;
(2) the business entity:
(a) would qualify for the renewable energy production tax credit pursuant to Paragraph (1) or (2) of Subsection B of this section;
(b) owns an interest in a business entity that is also taxed for federal income tax purposes as a partnership and that would qualify for the renewable energy production tax credit pursuant to Paragraph (1) or (2) of Subsection B of this section; or
(c) owns, through one or more intermediate business entities that are each taxed for federal income tax purposes as a partnership, an interest in the business entity described in Subparagraph (b) of this paragraph;
(3) the taxpayer and all other taxpayers allocated a right to claim the renewable energy production tax credit pursuant to this subsection own collectively at least a five percent interest in a qualified energy generator;
(4) the business entity provides notice of the allocation and the taxpayer's interest to the energy, minerals and natural resources department on forms prescribed by that department for the taxable year to be claimed; and
(5) the energy, minerals and natural resources department certifies the allocation for the taxable year to be claimed in writing to the taxpayer.
I. Upon receipt of notice of an allocation of the right to claim all or a portion of the renewable energy production tax credit, the energy, minerals and natural resources department shall promptly certify the allocation in writing to the recipient of the allocation.
J. A taxpayer may claim the renewable energy production tax credit by submitting to the taxation and revenue department the certificate issued by the energy, minerals and natural resources department, pursuant to Subsection G or H of this section, documentation showing the taxpayer's interest in the facility, documentation of the amount of electricity produced by the facility in the taxable year and any other information the taxation and revenue department may require to determine the amount of the tax credit due the taxpayer.
K. If the requirements of this section have been complied with, the department shall approve payment of the renewable energy production tax credit. The credit may be deducted from a taxpayer's New Mexico corporate income tax liability for the taxable year for which the credit is claimed. If the amount of tax credit exceeds the taxpayer's corporate income tax liability for the taxable year:
(1) the excess may be carried forward for a period of five taxable years; or
(2) if the tax credit was issued with respect to a qualified energy generator that first produced electricity using a qualified energy resource on or after October 1, 2007, the excess shall be refunded to the taxpayer.
L. Once a taxpayer has been granted a renewable energy production tax credit for a given facility, that taxpayer shall be allowed to retain the facility's original date of application for tax credits for that facility until either the facility goes out of production for more than six consecutive months in a year or until the facility's ten-year eligibility has expired.
Laws 2002, ch. 59, § 1; 2003, ch. 419, § 1; 2005, ch. 104, § 7; 2005, ch. 181, § 1; 2007, ch. 204, § 1; 2021, ch. 65, § 7.
NMSA 1978, § 7-2A-19.1 Clean car corporate income tax credit. (Repealed effective January 1, 2031.)
7-2A-19.1. Clean car corporate income tax credit. (Repealed effective January 1, 2031.)
A. A taxpayer that, beginning on the effective date of this section and prior to January 1, 2030, purchases an electric vehicle, plug-in hybrid electric vehicle or fuel cell vehicle or enters into a new lease of at least three years for one of these vehicles may claim a tax credit against the taxpayer's tax liability imposed pursuant to the Corporate Income and Franchise Tax Act in an amount provided in Subsection B of this section. The tax credit provided by this section may be referred to as the "clean car corporate income tax credit".
B. The amount of the tax credit shall be in an amount equal to:
(1) for taxable years beginning January 1, 2024 and prior to January 1, 2027:
(a) three thousand dollars ($3,000) for a new electric vehicle;
(b) two thousand five hundred dollars ($2,500) for a new plug-in hybrid electric vehicle or fuel cell vehicle;
(c) two thousand five hundred dollars ($2,500) for a previously owned electric vehicle; and
(d) two thousand dollars ($2,000) for a previously owned plug-in hybrid electric vehicle or fuel cell vehicle;
(2) for a taxable year beginning January 1, 2027 and prior to January 1, 2028:
(a) two thousand two hundred twenty dollars ($2,220) for a new electric vehicle;
(b) one thousand eight hundred fifty dollars ($1,850) for a new plug-in hybrid electric vehicle or fuel cell vehicle;
(c) one thousand eight hundred fifty dollars ($1,850) for a previously owned electric vehicle; and
(d) one thousand four hundred eighty dollars ($1,480) for a previously owned plug-in hybrid electric vehicle or fuel cell vehicle;
(3) for a taxable year beginning on January 1, 2028 and prior to January 1, 2029:
(a) one thousand four hundred seventy dollars ($1,470) for a new electric vehicle;
(b) one thousand two hundred twenty-five dollars ($1,225) for a new plug-in hybrid electric vehicle or fuel cell vehicle;
(c) one thousand two hundred twenty-five dollars ($1,225) for a previously owned electric vehicle; and
(d) nine hundred eighty dollars ($980) for a previously owned plug-in hybrid electric vehicle or fuel cell vehicle; and
(4) for the taxable year beginning January 1, 2029:
(a) nine hundred sixty dollars ($960) for a new electric vehicle;
(b) eight hundred dollars ($800) for a new plug-in hybrid electric vehicle or fuel cell vehicle;
(c) eight hundred dollars ($800) for a previously owned electric vehicle; and
(d) six hundred forty dollars ($640) for a previously owned plug-in hybrid electric vehicle or fuel cell vehicle.
C. For a previously owned vehicle to be eligible for the tax credit, the vehicle shall have a model year that is at least two years prior to the calendar year in which the taxpayer purchased or leased the vehicle.
D. A taxpayer shall apply for certification of eligibility for the tax credit from the energy, minerals and natural resources department on forms and in the manner prescribed by that department. Only one tax credit shall be certified per taxpayer per taxable year. The energy, minerals and natural resources department may promulgate rules governing the procedure for administering the provisions of this subsection.
E. An application for certification of eligibility shall include proof of vehicle purchase from or lease through a dealer licensed by the motor vehicle division of the department pursuant to Section 66-4-2 NMSA 1978 or a dealer located on tribal land within New Mexico, the vehicle's registration or application for title and registration in New Mexico and any additional information the energy, minerals and natural resources department may require to determine eligibility for the credit. If the energy, minerals and natural resources department determines that the taxpayer meets the requirements of this section, that department shall issue a dated certificate of eligibility to the taxpayer providing the amount of tax credit for which the taxpayer is eligible and the taxable years in which the credit may be claimed. The energy, minerals and natural resources department shall provide the department with the certificates of eligibility issued pursuant to this subsection in an electronic format at regularly agreed upon intervals.
F. Applications for certification of the tax credit shall be made no later than one year from the date on which the vehicle is purchased or the lease is entered into.
G. A certificate of eligibility for the tax credit may be sold, exchanged or otherwise transferred to another taxpayer for the full value of the credit. The parties to such a transaction shall notify the department of the sale, exchange or transfer within ten days of the sale, exchange or transfer in an electronic format prescribed by the department.
H. That portion of the tax credit claimed by a taxpayer that exceeds the taxpayer's income tax liability in the taxable year in which a clean car corporate income tax credit is claimed shall be refunded to the taxpayer.
I. A taxpayer allowed to claim the tax credit shall claim the tax credit in a manner required by the department. The credit shall be claimed within three taxable years of the end of the year in which the energy, minerals and natural resources department certifies the credit.
J. As used in this section:
(1) "electric vehicle" means a motor vehicle that derives all of the vehicle's power from electricity stored in a battery that:
(a) has a capacity of not less than twenty-five kilowatt-hours;
(b) is capable of powering the vehicle for a range of at least one hundred miles; and
(c) is capable of being recharged from an external source of electricity;
(2) "fuel cell vehicle" means a motor vehicle that:
(a) uses a fuel cell to produce electricity that is used to drive an electric motor; and
(b) is capable of powering the vehicle for a range of at least one hundred miles;
(3) "motor vehicle" means a vehicle with four wheels that:
(a) is required under the Motor Vehicle Code [Chapter 66, Articles 1 to 8 NMSA 1978] to be registered in this state and that is registered in this state;
(b) is made by a manufacturer;
(c) is manufactured primarily for use on public streets, roads or highways;
(d) has not been modified from the original manufacturer specifications;
(e) is rated at not less than two thousand two hundred pounds unloaded base weight and not more than nine thousand seven hundred fifty pounds unloaded base weight;
(f) has a maximum speed capability of at least sixty-five miles per hour; and
(g) is purchased from or leased through a dealer licensed by the motor vehicle division of the department pursuant to Section 66-4-2 NMSA 1978 or a dealer located on tribal land within New Mexico;
(4) "new" means a motor vehicle that has a base manufacturer suggested retail price, before options and destination charges and before any taxes are imposed, of fifty-five thousand dollars ($55,000) or less;
(5) "plug-in hybrid electric vehicle" means a motor vehicle that derives part of the vehicle's power from electricity stored in a battery that:
(a) has a capacity of not less than six kilowatt-hours;
(b) is capable of powering a vehicle for a range of at least thirty miles; and
(c) is capable of being recharged from an external source of electricity;
(6) "previously owned" means a motor vehicle that is not new and that has a market value of twenty-five thousand dollars ($25,000) or less; and
(7) "tribal land" means all land owned by a tribe and located within the exterior boundaries of the tribe's reservation or grant and all land held by the United States in trust for the tribe.
Laws 2024, ch. 67, § 29.
NMSA 1978, § 7-2A-19.2 Clean car charging unit corporate income tax credit. (Repealed effective January 1, 2031.)
7-2A-19.2. Clean car charging unit corporate income tax credit. (Repealed effective January 1, 2031.)
A. A taxpayer that, beginning on the effective date of this section and prior to January 1, 2030, purchases and installs an electric vehicle charging unit or fuel cell charging unit in New Mexico may claim a credit against the taxpayer's tax liability imposed pursuant to the Corporate Income and Franchise Tax Act in an amount provided in Subsection B of this section. The tax credit provided by this section may be referred to as the "clean car charging unit corporate income tax credit".
B. The amount of tax credit shall be in an amount equal to:
(1) for a direct current fast charger or fuel cell charging unit, twenty-five thousand dollars ($25,000) or the cost to purchase and install the direct current fast charger or fuel cell charging unit, whichever is less; and
(2) for all other electric vehicle charging units, four hundred dollars ($400) or the cost to purchase and install the electric vehicle charging unit, whichever is less.
C. A taxpayer shall apply for certification of eligibility for the tax credit from the energy, minerals and natural resources department on forms and in the manner prescribed by that department. Only one tax credit shall be certified for a direct current fast charger or a fuel cell charging unit per taxpayer per taxable year. The energy, minerals and natural resources department may issue rules governing the procedure for administering the provisions of this subsection.
D. An application for certification of eligibility shall include:
(1) a receipt for the purchase and installation of the electric vehicle charging unit or fuel cell charging unit;
(2) for electric vehicle charging units, a copy of the data sheet that specifies the connector type, plug type, voltage and current of the electric vehicle charging unit;
(3) for a fuel cell charging unit, technical specifications on the fuel dispensing unit and fuel storage system, including information about operational pressures of the fuel cell charging unit; and
(4) any other information the energy, minerals and natural resources department may require to evaluate eligibility for the credit.
E. If the energy, minerals and natural resources department determines that the taxpayer meets the requirements of this section, that department shall issue a dated certificate of eligibility to the taxpayer providing the amount of tax credit for which the taxpayer is eligible and the taxable years in which the credit may be claimed. The energy, minerals and natural resources department shall provide the department certificates of eligibility issued in an electronic format at regularly agreed upon intervals.
F. An application for certification of the tax credit shall be made no later than one year from the date in which the electric vehicle charging unit or fuel cell charging unit for which the credit is claimed is purchased and installed.
G. That portion of tax credit that exceeds a taxpayer's income tax liability in the taxable year in which the credit is claimed shall be refunded to the taxpayer.
H. A taxpayer allowed to claim a tax credit pursuant to this section shall claim the tax credit in a manner required by the department. The credit shall be claimed within three taxable years of the end of the year in which the energy, minerals and natural resources department certifies the credit.
I. A taxpayer that claims the 2021 sustainable building tax credit for expenses of purchasing or installing an electric vehicle charging unit or fuel cell charging unit shall not be eligible to claim the tax credit provided by this section.
J. As used in this section:
(1) "direct current fast charger" means an electric vehicle charging unit that provides at least fifty kilowatts of direct current electrical power for charging an electric vehicle through a connector based on fast charging equipment standards and that is approved for installation for that purpose under the National Electrical Code through an underwriters laboratories certification or an equivalent certifying organization;
(2) "electric vehicle" means a motor vehicle subject to the registration fee pursuant to Section 66-6-2 or 66-6-4 NMSA 1978 that derives all of the vehicle's power from electricity stored in a battery that:
(a) has a capacity of not less than twenty-five kilowatt-hours;
(b) is capable of powering the vehicle for a range of at least one hundred miles; and
(c) is capable of being recharged from an external source of electricity;
(3) "electric vehicle charging unit" means a device that:
(a) is used to provide electricity to an electric vehicle or plug-in hybrid electric vehicle;
(b) is designed to create a connection between an electricity source and the electric vehicle or plug-in hybrid electric vehicle; and
(c) uses the electric vehicle's or plug-in hybrid electric vehicle's control system to ensure that electricity flows at an appropriate voltage and current level;
(4) "fuel cell charging unit" means a facility or unit that dispenses liquefied or compressed hydrogen for fuel cell vehicle refueling and that is approved for installation for that purpose under applicable codes and compliant with requirements of applicable certifying organizations;
(5) "fuel cell vehicle" means a motor vehicle subject to the registration fee pursuant to Section 66-6-2 or 66-6-4 NMSA 1978 that:
(a) uses a fuel cell to produce electricity that is used to drive an electric motor; and
(b) is capable of powering the vehicle for a range of at least one hundred miles; and
(6) "plug-in hybrid electric vehicle" means a motor vehicle subject to the registration fee pursuant to Section 66-6-2 or 66-6-4 NMSA 1978 that derives part of the vehicle's power from electricity stored in a battery that:
(a) has a capacity of not less than six kilowatt-hours;
(b) is capable of powering a vehicle for a range of at least thirty miles; and
(c) is capable of being recharged from an external source of electricity.
Laws 2024, ch. 67, § 30.
NMSA 1978, § 7-2A-19.3 Advanced energy equipment corporate income tax credit. (Repealed effective January 1, 2034.)
7-2A-19.3. Advanced energy equipment corporate income tax credit. (Repealed effective January 1, 2034.)
A. The tax credit provided by this section may be referred to as the "advanced energy equipment corporate income tax credit". A taxpayer that makes qualified expenditures for a qualified manufacturing facility located in New Mexico and that files a corporate income tax return for a taxable year beginning on or after January 1, 2025, and prior to January 1, 2033, may claim the tax credit in the amount provided in Subsection B of this section.
B. The amount of the tax credit shall be in an amount equal to the lesser of twenty percent of the amount of the qualified expenditures made by the taxpayer for a qualified manufacturing facility or twenty-five million dollars ($25,000,000).
C. Prior to incurring a qualified expenditure, a taxpayer shall apply for preliminary certification of eligibility for the tax credit from the energy, minerals and natural resources department on forms and in the manner prescribed by that department. Such preliminary certification shall be made in consultation with the economic development department and shall be limited to confirming that the qualified expenditures proposed to be made by the taxpayer will in whole or in part be used to produce advanced energy products and providing an estimate of the amount of tax credit for which the taxpayer may be eligible. Only one certificate of eligibility shall be issued for all activities performed at a qualified manufacturing facility, regardless of ownership of the facility.
D. Within twelve months of commencement of production of any advanced energy product, the taxpayer shall seek final certification from the energy, minerals and natural resources department. The total annual aggregate amount of advanced energy equipment corporate income tax credits and advanced energy equipment income tax credits that may be certified in a calendar year shall not exceed twenty-five million dollars ($25,000,000). An application for final certification shall include information required by the energy, minerals and natural resources department to determine eligibility for the tax credit, including information substantiating qualified expenditures. If, after consultation with the economic development department, the energy, minerals and natural resources department determines that the taxpayer meets the requirements of this section, the energy, minerals and natural resources department shall issue a dated certificate of eligibility to the taxpayer providing the amount of tax credit for which the taxpayer is eligible and the taxable years in which the credit may be claimed. The energy, minerals and natural resources department shall provide the department with the certificates of eligibility issued pursuant to this subsection in an electronic format at regularly agreed-upon intervals. A certificate of eligibility for the tax credit may be sold, exchanged or otherwise transferred to another taxpayer in increments of not less than one million dollars ($1,000,000); provided that if the total amount certified is less than one million dollars ($1,000,000), a certificate of the entire amount of the credit may be transferred. The parties to such a transaction shall notify the department of the sale, exchange or transfer within ten days of the sale, exchange or transfer in an electronic format prescribed by the department.
E. A taxpayer allowed to claim the tax credit shall claim the credit in a manner required by the department. The tax credit shall be claimed within one year of receiving final certification from the energy, minerals and natural resources department. The taxpayer shall claim the amount certified and approved against the taxpayer's corporate income tax liabilities. Any amount of credit that exceeds the taxpayer's corporate income tax liabilities may be carried forward for five consecutive taxable years. A taxpayer that claims the tax credit shall report to the department and the energy, minerals and natural resources department on the continued operations of the qualified manufacturing facility.
F. If the taxpayer or a successor in the business of the taxpayer ceases operations at the qualifying manufacturing facility or ceases to produce advanced energy products for at least one hundred eighty days within a two-year period after the taxpayer has claimed the tax credit, any amount of credit that received final certification with respect to that facility that is not claimed against a taxpayer's tax liability shall be extinguished, and within thirty days after the one hundred eightieth day of cessation of operations, the taxpayer that received final certification pursuant to Subsection D of this section shall pay to the department the tax liability against which the certified credit was claimed. For the purposes of this section, a taxpayer shall not be deemed to have ceased operations during reasonable periods for maintenance or retooling, for the repair or replacement of facilities damaged or destroyed or during labor disputes.
G. The tax credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the tax credit.
H. As used in this section:
(1) "advanced energy product" means:
(a) a solar energy component, including a solar module, photovoltaic cell, photovoltaic wafer, solar-grade polysilicon, torque tube, structural fastener or polymeric backsheet;
(b) a wind energy component, including a wind turbine blade, nacelle and tower;
(c) a battery component, including an electrode-active material, a battery cell and a battery module;
(d) a fusion machine and the components of a fusion machine that can transform atomic nuclei through fusion processes into different elements, isotopes or other particles, including associated systems essential to facilitate fusion processes;
(e) a critical mineral, if converted or purified to specified purities or forms, including aluminum, antimony, arsenic, barite, bismuth, cerium, cesium, chromium, cobalt, dysprosium, erbium, europium, fluorspar, gadolinium, gallium, germanium, graphite, hafnium, holmium, indium, iridium, lanthanum, lithium, lutetium, magnesium, manganese, neodymium, nickel, niobium, palladium, platinum, praseodymium, rhodium, rubidium, ruthenium, samarium, tantalum, tellurium, terbium, thulium, tin, titanium, tungsten, vanadium, ytterbium, yttrium, zinc and zirconium; and
(f) an inverter that is an end product, which is suitable to convert direct current energy from one or more solar module or certified distributed wind energy systems into alternating current electricity, including a central inverter, commercial inverter, distributed wind inverter, microinverter, residential inverter or utility inverter;
(2) "essential" means directly necessary to the production of an advanced energy product;
(3) "manufacturing equipment" means an essential machine, mechanism or tool or a component of an essential machine, mechanism or tool used directly and exclusively in a taxpayer's qualified manufacturing facility and that is subject to depreciation pursuant to the Internal Revenue Code by the taxpayer carrying on the manufacturing. "Manufacturing equipment" does not include a vehicle that leaves the site of a manufacturing operation for the purpose of transporting persons or property, including property for which the taxpayer claims a credit pursuant to Section 7-9-79 NMSA 1978;
(4) "qualified expenditure" means an expenditure made on or after January 1, 2025 and prior to January 1, 2033 for the purchase of that portion of the costs of manufacturing equipment dedicated to manufacturing advanced energy products; and
(5) "qualified manufacturing facility" means a facility located in New Mexico, including any connected, associated or subsidiary facilities, that employs personnel to perform production tasks with manufacturing equipment not previously existing at the facility to produce advanced energy products.
Laws 2024, ch. 67, § 36; 2026, ch. 17, § 2.
NMSA 1978, § 7-2A-19.4 Local journalist employment corporate income tax credit
7-2A-19.4. Local journalist employment corporate income tax credit
A. For taxable years prior to January 1, 2032, a taxpayer that is a local news organization that employs a journalist may claim a credit against the taxpayer's tax liability imposed pursuant to the Corporate Income and Franchise Tax Act in an amount provided in Subsection B of this section. The tax credit provided by this section may be referred to as the "local journalist employment corporate income tax credit".
B. The amount of tax credit shall be in an amount equal to thirty percent of wages paid to each journalist employed by a local news organization.
C. A taxpayer shall apply for certification of eligibility for the tax credit from the department on forms and in the manner prescribed by the department no later than one year following the end of the calendar year in which the wages were paid. A taxpayer shall not be eligible to receive a tax credit for more than seventy-five journalists whom the taxpayer employs as a local news organization, and only one tax credit shall be certified for each journalist employed by a local news organization per taxable year. The total annual aggregate amount of local journalist employment corporate income tax credits and local journalist employment income tax credits that may be certified in a calendar year shall not exceed four million dollars ($4,000,000). Completed applications shall be considered in the order received.
D. If the department determines that the taxpayer meets the requirements of this section, the department shall issue a dated certificate of eligibility to the taxpayer providing the amount of tax credit for which the taxpayer is eligible and the taxable years in which the credit may be claimed.
E. That portion of tax credit that exceeds a taxpayer's corporate income tax liability in the taxable year in which the credit is claimed shall be refunded to the taxpayer.
F. A taxpayer allowed to claim a tax credit pursuant to this section shall claim the tax credit in a manner required by the department.
G. The tax credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the total annual aggregate cost of the tax credit.
H. As used in this section:
(1) "journalist" means a person who:
(a) is paid by a local news organization to regularly gather, prepare, collect, photograph, record, direct the recording of, produce, write, edit, report or publish news or information that concerns state or local events or other matters of public interest for dissemination to the state or a local community through reporting activities, including conducting interviews, observing current events or analyzing documents;
(b) resides within fifty miles of the coverage area assigned by the local news organization; and
(c) is employed as a journalist by the local news organization for more than twenty-eight weeks of the taxable year in which the credit is claimed;
(2) "local news organization" means an entity that:
(a) provides a print or digital publication that engages professionals who regularly gather, prepare, collect, photograph, record, direct the recording of, produce, write, edit, report or publish news or information that concerns state or local events or other matters of public interest for dissemination to the state or a local community through reporting activities, including conducting interviews, observing current events or analyzing documents;
(b) pays at least one individual, either through employment or by contract with the entity, as a journalist;
(c) in the case of print publications, has published at least one print publication per month over the previous twenty-four months and holds a valid United States postal service periodical permit or has at least thirty percent of its content dedicated to state or local news;
(d) in the case of digital-only entities, has published at least three originally produced stories about the state or a local community per week averaged over the previous twenty-four months and has at least fifty percent of its digital audience in New Mexico, averaged over a twelve-month period;
(e) discloses in its print publication or on its website its beneficial ownership or, in the case of a not-for-profit entity, its board of directors;
(f) in the case of an organization that demonstrates to the department that the organization has been granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501(c)(3) of the Internal Revenue Code, has declared the coverage of state or local news as the stated mission in its filings with the federal internal revenue service;
(g) has not received more than ten percent of its gross receipts for the previous year from political action committees or other entities described in Section 527 of the Internal Revenue Code, or from an organization that has been granted exemption from the federal income tax by the United States commissioner of internal revenue as an organization described in Section 501(c)(4) or 501(c)(6) of the Internal Revenue Code; and
(h) is not a publicly traded entity or is no more than forty-nine percent owned, directly or indirectly, by a publicly traded entity or subsidiary; and
(3) "wages" means not more than fifty thousand dollars ($50,000) in compensation paid by a local news organization to a journalist through the organization's payroll system, including those wages that the journalist elects to defer or redirect or the journalist's contribution to a 401(k) or cafeteria plan program. "Wages" does not mean benefits or the organization's share of payroll taxes, social security or medicare contributions, federal or state unemployment insurance contributions or workers' compensation.
Laws 2026, ch. 69, § 4.
NMSA 1978, § 7-2A-19.5 Local news printer corporate income tax credit
7-2A-19.5. Local news printer corporate income tax credit
A. For taxable years prior to January 1, 2032, a taxpayer that is an owner of a local news printer that employs a qualified employee may claim a credit against the taxpayer's tax liability imposed pursuant to the Corporate Income and Franchise Tax Act in an amount provided in Subsection B of this section. The tax credit provided by this section may be referred to as the "local news printer corporate income tax credit".
B. The amount of tax credit shall be in an amount equal to the wages paid to each qualified employee employed by a local news printer in the taxable year for which the tax credit is claimed, not to exceed:
(1) ten thousand dollars ($10,000) for a qualified employee working an average of twenty hours or more per week in the taxable year; and
(2) five thousand dollars ($5,000) for a qualified employee working an average of less than twenty hours per week in the taxable year.
C. A taxpayer shall apply for certification of eligibility for the tax credit from the department on forms and in the manner prescribed by the department no later than one year following the end of the calendar year in which the wages were paid. A taxpayer shall not be eligible to receive a tax credit for more than one hundred qualified employees whom the taxpayer employs as a local news printer and only one tax credit shall be certified for each qualified employee employed by a local news printer per taxable year. The total annual aggregate amount of local news printer corporate income tax credits and local news printer income tax credits that may be certified in a calendar year shall not exceed one million dollars ($1,000,000). Completed applications shall be considered in the order received.
D. If the department determines that the taxpayer meets the requirements of this section, the department shall issue a dated certificate of eligibility to the taxpayer providing the amount of tax credit for which the taxpayer is eligible and the taxable years in which the credit may be claimed.
E. That portion of tax credit that exceeds a taxpayer's income tax liability in the taxable year in which the credit is claimed shall be refunded to the taxpayer.
F. A taxpayer allowed to claim a tax credit pursuant to this section shall claim the tax credit in a manner required by the department.
G. The credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the total annual aggregate cost of the credit.
H. As used in this section:
(1) "local news organization" means an entity that:
(a) provides a print or digital publication that engages professionals who regularly gather, prepare, collect, photograph, record, direct the recording of, produce, write, edit, report or publish news or information that concerns state or local events or other matters of public interest for dissemination to the state or a local community through reporting activities, including conducting interviews, observing current events or analyzing documents;
(b) pays at least one individual, either through employment or by contract with the entity, as a qualified employee;
(c) in the case of print publications, has published at least one print publication per month over the previous thirty-six months and holds a valid United States postal service periodical permit or has at least thirty percent of the entity's content dedicated to state or local news;
(d) in the case of digital-only entities, has published at least five originally produced stories about the state or a local community per week over the previous thirty-six months and has at least fifty percent of the entity's digital audience in New Mexico, averaged over a twelve-month period;
(e) discloses in the entity's print publication or on the entity's website the entity's beneficial ownership or, in the case of a not-for-profit entity, the entity's board of directors;
(f) in the case of an organization that demonstrates to the department that the organization has been granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501(c)(3) of the Internal Revenue Code, has declared the coverage of state or local news as the stated mission in the organization's filings with the federal internal revenue service;
(g) has not received more than ten percent of the entity's gross receipts for the previous year from political action committees or other entities described in Section 527 of the Internal Revenue Code, or from an organization that has been granted exemption from the federal income tax by the United States commissioner of internal revenue as an organization described in Section 501(c)(4) or 501(c)(6) of the Internal Revenue Code; and
(h) is not a publicly traded entity or is no more than forty-nine percent owned, directly or indirectly, by a publicly traded entity or subsidiary;
(2) "local news printer" means an entity that:
(a) provides manufacturing, production and printing services using a web press designed and optimized for printing newspapers for a local news organization;
(b) has been engaging in the business of manufacturing, producing and printing newspapers for at least five years;
(c) employs at least five qualified employees; and
(d) is not a publicly traded entity or is no more than forty-nine percent owned, directly or indirectly, by a publicly traded entity or subsidiary;
(3) "qualified employee" means a person who:
(a) is paid by a local news printer to regularly perform duties related to pre-press, press and post-press newspaper production to prepare newspapers for transition to delivery and distribution personnel;
(b) works at a physical location in New Mexico; and
(c) works as a qualified employee for the local news printer for at least twenty-five percent of the taxable year in which the credit is claimed; and
(4) "wages" means compensation paid by a local news printer to a qualified employee through the organization's payroll system, including those wages that the qualified employee elects to defer or redirect or the qualified employee's contribution to a 401(k) or cafeteria plan program. "Wages" does not mean benefits or the organization's share of payroll taxes, social security or medicare contributions, federal or state unemployment insurance contributions or workers' compensation.
Laws 2026, ch. 69, § 8.
NMSA 1978, § 7-2A-24 Geothermal ground-coupled heat pump corporate income tax credit
7-2A-24. Geothermal ground-coupled heat pump corporate income tax credit
A. A taxpayer that files a New Mexico corporate income tax return for a taxable year beginning on or after January 1, 2024 and that purchases and installs after May 15, 2024 but before December 31, 2034 a geothermal ground-coupled heat pump in a property owned by the taxpayer may claim against the taxpayer's corporate income tax liability, and the department may allow, a tax credit of up to thirty percent of the purchase and installation costs of the system. The credit provided in this section may be referred to as the "geothermal ground-coupled heat pump corporate income tax credit". The total geothermal ground-coupled heat pump corporate income tax credit allowed to a taxpayer shall not exceed nine thousand dollars ($9,000). The department shall allow a geothermal ground-coupled heat pump corporate income tax credit only for geothermal ground-coupled heat pumps that are certified pursuant to Subsection C of this section and installed by a nationally accredited ground source heat pump installer.
B. That portion of a geothermal ground-coupled heat pump corporate income tax credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed shall be refunded to the taxpayer.
C. The energy, minerals and natural resources department shall adopt rules establishing procedures to provide certification of geothermal ground-coupled heat pumps for purposes of obtaining a geothermal ground-coupled heat pump corporate income tax credit. The rules shall address technical specifications and requirements relating to safety, building code and standards compliance, minimum system sizes, system applications and lists of eligible components. The energy, minerals and natural resources department may modify the specifications and requirements as necessary to maintain a high level of system quality and performance.
D. The maximum annual aggregate of credits that may be certified in a calendar year by the energy, minerals and natural resources department is four million dollars ($4,000,000). That department shall not certify a tax credit for which a taxpayer claims a 2021 sustainable building corporate income tax credit using a geothermal ground-coupled heat pump as a component of qualification for the rating system certification level used in determining eligibility for that credit. Completed applications for the credit shall be considered in the order received. The energy, minerals and natural resources department shall provide the department appropriate information for all certificates of eligibility in a secure manner on regular intervals agreed upon by both departments.
E. A taxpayer allowed a tax credit pursuant to this section shall claim the credit on forms and in a manner required by the department.
F. The tax credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the tax credit.
G. As used in this section, "geothermal ground-coupled heat pump" means a heating and refrigerating system that directly or indirectly utilizes available heat below the surface of the earth for distribution of heating and cooling or domestic hot water and that has either a minimum coefficient of performance of three and four-tenths or an efficiency ratio of sixteen or greater.
Laws 2009, ch. 271, § 2; 2024, ch. 67, § 26; 2025, ch. 130, § 55.
NMSA 1978, § 7-2A-24.1 Geothermal electricity generation corporate income tax credit
7-2A-24.1. Geothermal electricity generation corporate income tax credit
A. For taxable years ending prior to January 1, 2032, a taxpayer that holds an interest in a geothermal electricity generation facility may apply for, and the department may allow, a credit against the taxpayer's tax liability imposed pursuant to the Corporate Income and Franchise Tax Act. The tax credit provided by this section may be referred to as the "geothermal electricity generation corporate income tax credit".
B. The amount of a tax credit allowed pursuant to this section shall be an amount equal to one and one-half cents ($0.015) per kilowatt-hour of electricity generated in New Mexico in a taxable year by the geothermal electricity generation facility in which the taxpayer holds an interest.
C. A taxpayer shall apply for certification of eligibility for the credit provided by this section from the energy, minerals and natural resources department on forms and in the manner prescribed by that department. The total annual aggregate amount of geothermal electricity generation corporate income tax credits and geothermal electricity generation income tax credits that may be certified in any calendar year is five million dollars ($5,000,000). Completed applications shall be considered in the order received. Applications for certification received after this limitation has been met in a calendar year shall not be approved for that calendar year, but shall be considered for certification in the following calendar year. The application shall include proof that the taxpayer is eligible for certification, including that the geothermal electricity generation facility that produced the energy for which the taxpayer is claiming credit, the geothermal resources used by the geothermal electricity generation facility and the taxpayer's interest in the geothermal electricity generation facility are in accordance with the definitions set forth in this section. For taxpayers approved to receive the credit, the energy, minerals and natural resources department shall issue a certificate of eligibility stating the amount of credit to which the taxpayer is entitled and the taxable year in which the credit may be claimed. The certificate of eligibility shall be numbered for identification and declare the date of issuance and the amount of the tax credit allowed.
D. A taxpayer may claim a geothermal electricity generation corporate income tax credit for the taxable year in which electricity was generated in New Mexico by a geothermal electricity generation facility in which the taxpayer holds an interest. To receive the credit provided by this section, a taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include a certificate of eligibility issued pursuant to Subsection C of this section.
E. That portion of a credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed may be carried forward for up to three consecutive years.
F. A taxpayer allowed a tax credit pursuant to this section shall report the amount of the credit to the department in a manner required by that department.
G. The tax credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the tax credit.
H. As used in this section:
(1) "geothermal electricity generation facility" means a facility located in New Mexico that generates electricity from geothermal resources and:
(a) for new facilities, begins construction on or after January 1, 2025; or
(b) for existing facilities, on or after January 1, 2025, increases the amount of electricity generated from geothermal resources the facility generated prior to that date by at least one hundred percent;
(2) "geothermal resources" means the natural heat of the earth in excess of two hundred fifty degrees Fahrenheit or the energy, in whatever form, below the surface of the earth present in, resulting from, created by or that may be extracted from this natural heat in excess of two hundred fifty degrees Fahrenheit and all minerals in solution or other products obtained from naturally heated fluids, brines, associated gases and steam, in whatever form, found below the surface of the earth, but excluding oil, hydrocarbon gas and other hydrocarbon substances and excluding the heating and cooling capacity of the earth not resulting from the natural heat of the earth in excess of two hundred fifty degrees Fahrenheit as may be used for the heating and cooling of buildings through an on-site geoexchange heat pump or similar on-site system; and
(3) "interest in a geothermal electricity generation facility" means title to a geothermal electricity generation facility; a leasehold interest in such facility; an ownership interest in a business or entity that is taxed for federal income tax purposes as a partnership that holds title to or a leasehold interest in such facility; or an ownership interest, through one or more intermediate entities that are each taxed for federal income tax purposes as a partnership, in a business that holds title to or a leasehold interest in such facility.
Laws 2024, ch. 67, § 34; 2025, ch. 130, § 56.
NMSA 1978, § 7-2A-26 Agricultural biomass corporate income tax credit
7-2A-26. Agricultural biomass corporate income tax credit
A. A taxpayer that files a New Mexico corporate income tax return for a taxable year ending prior to January 1, 2030 for a dairy or feedlot owned by the taxpayer may claim against the taxpayer's corporate income and franchise tax liability, and the department may allow, a tax credit equal to five dollars ($5.00) per wet ton of agricultural biomass transported from the taxpayer's dairy or feedlot to a facility that uses agricultural biomass to generate electricity or make biocrude or other liquid or gaseous fuel for commercial use. The credit provided in this section may be referred to as the "agricultural biomass corporate income tax credit".
B. Subject to the limitations of Subsection C of this section, a taxpayer shall apply for certification of eligibility for the agricultural biomass corporate income tax credit from the energy, minerals and natural resources department on forms and in the manner prescribed by that department. Completed applications shall be considered in the order received. A dated certificate of eligibility shall be issued to the taxpayer providing the amount of the agricultural biomass corporate income tax credit for which the taxpayer is eligible and the taxable year in which the credit may be claimed. The energy, minerals and natural resources department shall adopt rules establishing procedures to provide certification of transportation of agricultural biomass to a qualified facility that uses agricultural biomass to generate electricity or make biocrude or other liquid or gaseous fuel for commercial use for purposes of obtaining an agricultural biomass corporate income tax credit.
C. The aggregate amount of agricultural biomass income tax credits and agricultural biomass corporate income tax credits that may be certified is five million dollars ($5,000,000) per calendar year, and applications for certification received after this limitation shall not be approved. Any remaining credits that remain unused in a taxable year may be available for certification for a maximum of four consecutive taxable years until the credits are fully utilized. The energy, minerals and natural resources department shall provide the department appropriate information for all certificates of eligibility in a secure manner on regular intervals agreed upon by both departments.
D. Any portion of the agricultural biomass corporate income tax credit that exceeds a taxpayer's corporate income tax liability in the taxable year in which the credit is being claimed may be carried forward for up to three consecutive taxable years. A certificate of eligibility for an agricultural biomass corporate income tax credit may be sold, exchanged or otherwise transferred to another taxpayer for the full value of the credit. The parties to such a transaction shall notify the department of the sale, exchange or transfer within ten days of the sale, exchange or transfer.
E. A taxpayer that claims an agricultural biomass corporate income tax credit shall not also claim an agricultural biomass income tax credit for transportation of the same agricultural biomass on which the claim for that agricultural biomass income tax credit is based.
F. A taxpayer allowed a tax credit pursuant to this section shall claim the credit on forms and in a manner required by the department.
G. The tax credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the tax credit.
H. As used in this section:
(1) "agricultural biomass" means wet manure meeting specifications established by the energy, minerals and natural resources department from either a dairy or feedlot commercial operation;
(2) "biocrude" means a nonfossil form of energy that can be transported and refined using existing petroleum refining facilities and that is made from biologically derived feedstocks and other agricultural biomass;
(3) "feedlot" means an operation that fattens livestock for market; and
(4) "dairy" means a facility that raises livestock for milk production.
Laws 2010, ch. 84, § 2; 2020, ch. 20, § 2; 2025, ch. 130, § 57.
NMSA 1978, § 7-2A-28 2015 sustainable building corporate income tax credit
7-2A-28. 2015 sustainable building corporate income tax credit
A. The tax credit provided by this section may be referred to as the "2015 sustainable building corporate income tax credit". The 2015 sustainable building corporate income tax credit shall be available for the construction in New Mexico of a sustainable building, the renovation of an existing building in New Mexico into a sustainable building or the permanent installation of manufactured housing, regardless of where the housing is manufactured, that is a sustainable building; provided that the construction, renovation or installation project is completed prior to April 1, 2023. The tax credit provided in this section may not be claimed with respect to the same sustainable building for which the 2015 sustainable building income tax credit, the 2021 sustainable building income tax credit or the 2021 sustainable building corporate income tax credit has been claimed.
B. The purpose of the 2015 sustainable building corporate income tax credit is to encourage the construction of sustainable buildings and the renovation of existing buildings into sustainable buildings.
C. A taxpayer that files a corporate income tax return may claim a 2015 sustainable building corporate income tax credit if the requirements of this section are met.
D. For taxable years ending on or before December 31, 2024, the 2015 sustainable building corporate income tax credit may be claimed with respect to a sustainable commercial building. The credit shall be calculated based on the certification level the building has achieved in the LEED green building rating system and the amount of qualified occupied square footage in the building, as indicated on the following chart:
LEED Rating Level Qualified Tax Credit per Occupied Square Foot Square Footage LEED-NC Silver First 10,000 $3.50 Next 40,000 $1.75 Over 50,000 up to 500,000 $0.70 LEED-NC Gold First 10,000 $4.75 Next 40,000 $2.00 Over 50,000 up to 500,000 $1.00 LEED-NC Platinum First 10,000 $6.25 Next 40,000 $3.25 Over 50,000 up to 500,000 $2.00 LEED-EB or CS Silver First 10,000 $2.50 Next 40,000 $1.25 Over 50,000 up to 500,000 $0.50 LEED-EB or CS Gold First 10,000 $3.35 Next 40,000 $1.40 Over 50,000 up to 500,000 $0.70 LEED-EB or CS Platinum First 10,000 $4.40 Next 40,000 $2.30 Over 50,000 up to 500,000 $1.40 LEED-CI Silver First 10,000 $1.40 Next 40,000 $0.70 Over 50,000 up to 500,000 $0.30 LEED-CI Gold First 10,000 $1.90 Next 40,000 $0.80 Over 50,000 up to 500,000 $0.40 LEED-CI Platinum First 10,000 $2.50 Next 40,000 $1.30 Over 50,000 up to 500,000 $0.80.
LEED Rating Level
Qualified
Tax Credit per
Occupied
Square Foot
Square Footage
LEED-NC Silver
First 10,000
$3.50
Next 40,000
$1.75
Over 50,000
up to 500,000
$0.70
LEED-NC Gold
First 10,000
$4.75
Next 40,000
$2.00
Over 50,000
up to 500,000
$1.00
LEED-NC Platinum
First 10,000
$6.25
Next 40,000
$3.25
Over 50,000
up to 500,000
$2.00
LEED-EB or CS Silver
First 10,000
$2.50
Next 40,000
$1.25
Over 50,000
up to 500,000
$0.50
LEED-EB or CS Gold
First 10,000
$3.35
Next 40,000
$1.40
Over 50,000
up to 500,000
$0.70
LEED-EB or CS
Platinum
First 10,000
$4.40
Next 40,000
$2.30
Over 50,000
up to 500,000
$1.40
LEED-CI Silver
First 10,000
$1.40
Next 40,000
$0.70
Over 50,000
up to 500,000
$0.30
LEED-CI Gold
First 10,000
$1.90
Next 40,000
$0.80
Over 50,000
up to 500,000
$0.40
LEED-CI Platinum
First 10,000
$2.50
Next 40,000
$1.30
Over 50,000
up to 500,000
$0.80.
E. For taxable years ending on or before December 31, 2024, the 2015 sustainable building corporate income tax credit may be claimed with respect to a sustainable residential building. The credit shall be calculated based on the amount of qualified occupied square footage, as indicated on the following chart:
Rating System/Level Qualified Tax Credit Occupied per Square Square Footage Foot LEED-H Silver or Build Up to 2,000 $3.00 Green NM Silver LEED-H Gold or Build Up to 2,000 $4.50 Green NM Gold LEED-H Platinum or Build Up to 2,000 $6.50 Green NM Emerald Manufactured Housing Up to 2,000 $3.00.
Rating System/Level
Qualified
Tax Credit
Occupied
per Square
Square Footage
Foot
LEED-H Silver or Build
Up to 2,000
$3.00
Green NM Silver
LEED-H Gold or Build
Up to 2,000
$4.50
Green NM Gold
LEED-H Platinum or Build
Up to 2,000
$6.50
Green NM Emerald
Manufactured Housing
Up to 2,000
$3.00.
F. A person that is a building owner may apply for a certificate of eligibility for the 2015 sustainable building corporate income tax credit from the energy, minerals and natural resources department after the construction, installation or renovation of the sustainable building is complete. Completed applications shall be considered in the order received. If the energy, minerals and natural resources department determines that the building owner meets the requirements of this subsection and that the building with respect to which the tax credit application is made meets the requirements of this section as a sustainable residential building or a sustainable commercial building, the energy, minerals and natural resources department may issue a dated certificate of eligibility to the building owner providing the amount of credit for which the building owner is eligible and the taxable year in which the credit may be claimed, subject to the limitations in Subsection G of this section. The certificate shall include the rating system certification level awarded to the building, the amount of qualified occupied square footage in the building and a calculation of the maximum amount of 2015 sustainable building corporate income tax credit for which the building owner would be eligible. The energy, minerals and natural resources department may issue rules governing the procedure for administering the provisions of this subsection.
G. Except as provided in Subsection H of this section, the energy, minerals and natural resources department may issue a certificate of eligibility only if the aggregate amount of 2015 sustainable building corporate income tax credits represented by certificates of eligibility issued by the energy, minerals and natural resources department pursuant to this section and Section 7-2-18.29 NMSA 1978 shall not exceed in any calendar year an aggregate amount of:
(1) one million two hundred fifty thousand dollars ($1,250,000) with respect to sustainable commercial buildings;
(2) three million three hundred seventy-five thousand dollars ($3,375,000) with respect to sustainable residential buildings that are not manufactured housing; and
(3) three hundred seventy-five thousand dollars ($375,000) with respect to sustainable residential buildings that are manufactured housing.
H. For any taxable year that the energy, minerals and natural resources department determines that applications for sustainable building corporate income tax credits for any type of sustainable building pursuant to Paragraph (1), (2) or (3) of Subsection G of this section are less than the aggregate limit for that type of sustainable building for that taxable year, the energy, minerals and natural resources department shall allow the difference between the aggregate limit and the applications to be added to the aggregate limit of another type of sustainable building for which applications exceeded the aggregate limit for that taxable year. Any excess not used in a taxable year shall not be carried forward to subsequent taxable years. The energy, minerals and natural resources department shall provide the department appropriate information for all certificates of eligibility in a secure manner on regular intervals agreed upon by both departments.
I. Installation of a solar thermal system or a photovoltaic system eligible for the solar market development tax credit pursuant to Section 7-2-18.14 [repealed] or 7-2-18.31 NMSA 1978 may not be used as a component of qualification for the rating system certification level used in determining eligibility for the 2015 sustainable building corporate income tax credit, unless a solar market development tax credit pursuant to Section 7-2-18.14 [repealed] or 7-2-18.31 NMSA 1978 has not been claimed with respect to that system and the building owner and the taxpayer claiming the 2015 sustainable building corporate income tax credit certify that such a tax credit will not be claimed with respect to that system.
J. To claim the 2015 sustainable building corporate income tax credit, the building owner shall provide to the department a certificate of eligibility issued by the energy, minerals and natural resources department pursuant to the requirements of Subsection F of this section and any other information the department may require to determine the amount of the tax credit for which the building owner is eligible.
K. Any portion of a 2015 sustainable building corporate income tax credit that exceeds the taxpayer's corporate income tax liability for the taxable year in which the credit is claimed may be carried forward for up to seven consecutive taxable years.
L. A taxpayer that otherwise qualifies and claims a 2015 sustainable building corporate income tax credit with respect to a sustainable building owned by a partnership or other business association of which the taxpayer is a member may claim a credit only in proportion to that taxpayer's interest in the partnership or association. The total credit claimed in the aggregate by all members of the partnership or association with respect to the sustainable building shall not exceed the amount of the credit that could have been claimed by a sole owner of the property.
M. The credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978 with an analysis of the effectiveness and cost of the tax credit and whether the tax credit is performing the purpose for which it was created.
N. For the purposes of this section:
(1) "build green New Mexico rating system" means the certification standards adopted by build green New Mexico in November 2014, which include water conservation standards;
(2) "LEED-CI" means the LEED rating system for commercial interiors;
(3) "LEED-CS" means the LEED rating system for the core and shell of buildings;
(4) "LEED-EB" means the LEED rating system for existing buildings;
(5) "LEED gold" means the rating in compliance with, or exceeding, the second-highest rating awarded by the LEED certification process;
(6) "LEED" means the most current leadership in energy and environmental design green building rating system guidelines developed and adopted by the United States green building council;
(7) "LEED-H" means the LEED rating system for homes;
(8) "LEED-NC" means the LEED rating system for new buildings and major renovations;
(9) "LEED platinum" means the rating in compliance with, or exceeding, the highest rating awarded by the LEED certification process;
(10) "LEED silver" means the rating in compliance with, or exceeding, the third-highest rating awarded by the LEED certification process;
(11) "manufactured housing" means a multisectioned home that is:
(a) a manufactured home or modular home;
(b) a single-family dwelling with a heated area of at least thirty-six feet by twenty-four feet and a total area of at least eight hundred sixty-four square feet;
(c) constructed in a factory to the standards of the United States department of housing and urban development, the National Manufactured Housing Construction and Safety Standards Act of 1974 and the Housing and Urban Development Zone Code 2 or New Mexico construction codes up to the date of the unit's construction; and
(d) installed consistent with the Manufactured Housing Act [Chapter 60, Article 14 NMSA 1978] and rules adopted pursuant to that act relating to permanent foundations;
(12) "qualified occupied square footage" means the occupied spaces of the building as determined by:
(a) the United States green building council for those buildings obtaining LEED certification;
(b) the administrators of the build green New Mexico rating system for those homes obtaining build green New Mexico certification; and
(c) the United States environmental protection agency for ENERGY STAR-certified manufactured homes;
(13) "person" does not include state, local government, public school district or tribal agencies;
(14) "sustainable building" means either a sustainable commercial building or a sustainable residential building;
(15) "sustainable commercial building" means a multifamily dwelling unit, as registered and certified under the LEED-H or build green New Mexico rating system, that is certified by the United States green building council as LEED-H silver or higher or by build green New Mexico as silver or higher and has achieved a home energy rating system index of sixty or lower as developed by the residential energy services network or a building that has been registered and certified under the LEED-NC, LEED-EB, LEED-CS or LEED-CI rating system and that:
(a) is certified by the United States green building council at LEED silver or higher;
(b) achieves any prerequisite for and at least one point related to commissioning under LEED "energy and atmosphere", if included in the applicable rating system; and
(c) has reduced energy consumption beginning January 1, 2012, by sixty percent based on the national average for that building type as published by the United States department of energy as substantiated by the United States environmental protection agency target finder energy performance results form, dated no sooner than the schematic design phase of development;
(16) "sustainable residential building" means:
(a) a building used as a single-family residence as registered and certified under the build green New Mexico or LEED-H rating systems that: 1) is certified by the United States green building council as LEED-H silver or higher or by build green New Mexico as silver or higher; 2) has achieved a home energy rating system index of sixty or lower as developed by the residential energy services network; 3) has indoor plumbing fixtures and water-using appliances that, on average, have flow rates equal to or lower than the flow rates required for certification by WaterSense; 4) if landscape area is available at the front of the property, has at least one water line outside the building below the frost line that may be connected to a drip irrigation system; and 5) if landscape area is available at the rear of the property, has at least one water line outside the building below the frost line that may be connected to a drip irrigation system; or
(b) manufactured housing that is ENERGY STAR-qualified by the United States environmental protection agency;
(17) "tribal" means of, belonging to or created by a federally recognized Indian nation, tribe or pueblo; and
(18) "WaterSense" means a program created by the federal environmental protection agency that certifies water-using products that meet the environmental protection agency's criteria for efficiency and performance.
Laws 2015, ch. 130, § 2; 2021, ch. 84, § 3; 2025, ch. 130, § 58.
NMSA 1978, § 7-2A-28.1 2021 sustainable building corporate income tax credit
7-2A-28.1. 2021 sustainable building corporate income tax credit
A. The tax credit provided by this section may be referred to as the "2021 sustainable building corporate income tax credit". For taxable years ending prior to January 1, 2028, a taxpayer that is a building owner and files a corporate income tax return may claim a 2021 sustainable building corporate income tax credit if the requirements of this section are met. The 2021 sustainable building corporate income tax credit shall be available for the construction in New Mexico of a sustainable building, the renovation of an existing building in New Mexico, the permanent installation of manufactured housing, regardless of where the housing is manufactured, that is a sustainable building or the installation of energy-conserving products to existing buildings in New Mexico, as provided in this section. The tax credit provided in this section may not be claimed with respect to the same sustainable building for which the 2021 sustainable building income tax credit, the 2015 sustainable building income tax credit or the 2015 sustainable building corporate income tax credit has been claimed.
B. The amount of a 2021 sustainable building corporate income tax credit shall be determined as follows:
(1) for the construction of a new sustainable commercial building that is broadband ready and electric vehicle ready and is completed on or after January 1, 2022, the amount of credit shall be calculated:
(a) based on the certification level the building has achieved in the rating level and the amount of qualified occupied square footage in the building, as indicated on the following chart:
Rating Level Qualified Tax Credit Occupied Per Square Square Footage Foot LEED-NC Platinum First 10,000 $5.25 Next 40,000 $2.25 Over 50,000 up to 200,000 $1.00 LEED-EB or CS Platinum First 10,000 $3.40 Next 40,000 $1.30 Over 50,000 up to 200,000 $0.35 LEED-CI Platinum First 10,000 $1.50 Next 40,000 $0.40 Over 50,000 up to 200,000 $0.30 LEED-NC Gold First 10,000 $3.00 Next 40,000 $1.00 Over 50,000 up to 200,000 $0.25 LEED-EB or -CS Gold First 10,000 $2.00 Next 40,000 $1.00 Over 50,000 up to 200,000 $0.25 LEED-CI Gold First 10,000 $0.90 Next 40,000 $0.40 Over 50,000 up to 200,000 $0.10; and
Rating Level
Qualified
Tax Credit
Occupied
Per Square
Square Footage
Foot
LEED-NC Platinum
First 10,000
$5.25
Next 40,000
$2.25
Over 50,000
up to 200,000
$1.00
LEED-EB or CS Platinum
First 10,000
$3.40
Next 40,000
$1.30
Over 50,000
up to 200,000
$0.35
LEED-CI Platinum
First 10,000
$1.50
Next 40,000
$0.40
Over 50,000
up to 200,000
$0.30
LEED-NC Gold
First 10,000
$3.00
Next 40,000
$1.00
Over 50,000
up to 200,000
$0.25
LEED-EB or -CS Gold
First 10,000
$2.00
Next 40,000
$1.00
Over 50,000
up to 200,000
$0.25
LEED-CI Gold
First 10,000
$0.90
Next 40,000
$0.40
Over 50,000
up to 200,000
$0.10; and
(b) with additional amounts based on the additional criteria and the amount of qualified occupied square footage, as indicated in the following chart:
Additional Criteria Qualified Tax Credit Occupied Per Square Square Footage Foot Fully Electric Building First 50,000 $1.00 Over 50,000 up to 200,000 $0.50 Zero Carbon, Energy, Waste or Water Certified First 50,000 $0.25 Over 50,000 up to 200,000 $0.10;
Additional Criteria
Qualified
Tax Credit
Occupied
Per Square
Square Footage
Foot
Fully Electric Building
First 50,000
$1.00
Over 50,000
up to 200,000
$0.50
Zero Carbon, Energy,
Waste or Water Certified
First 50,000
$0.25
Over 50,000
up to 200,000
$0.10;
(2) for the renovation of a commercial building that was built at least ten years prior to the date of the renovation, has twenty thousand square feet or more of space in which temperature is controlled and is broadband ready and electric vehicle ready, the amount of credit shall be calculated by multiplying two dollars twenty-five cents ($2.25) by the amount of qualified occupied square footage in the building, up to a maximum of one hundred fifty thousand dollars ($150,000) per renovation; provided that the renovation reduces total energy and power costs by fifty percent when compared to the most current energy standard for buildings except low-rise residential buildings, as developed by the American society of heating, refrigerating and air-conditioning engineers;
(3) for the installation of the following energy-conserving products to an existing commercial building with less than twenty thousand square feet of space in which temperature is controlled that is broadband ready, the amount of credit shall be based on the cost of the product installed, which shall include installation costs, and if the building is affordable housing, per product installed:
Product Amount of Credit Affordable Housing Non-Affordable Housing Energy Star Air Source Heat Pump $2,000 $1,000 Energy Star Ground Source Heat Pump $2,000 $1,000 Energy Star Windows and Doors 100% of product 50% of product cost up to cost up to $1,000 $500 Insulation Improvements That Meet Rules of the Energy, Minerals and Natural Resources Department 100% of product 50% of product cost up to cost up to $2,000 $1,000 Energy Star Heat Pump Water Heater $700 $350 Electric Vehicle Ready 100% of product 50% of product cost up to cost up to $3,000 $1,500;
Product
Amount of Credit
Affordable Housing
Non-Affordable Housing
Energy Star Air
Source Heat Pump
$2,000
$1,000
Energy Star Ground
Source Heat Pump
$2,000
$1,000
Energy Star
Windows and Doors
100% of product
50% of product
cost up to
cost up to
$1,000
$500
Insulation Improvements That
Meet Rules of the
Energy, Minerals and Natural
Resources Department
100% of product
50% of product
cost up to
cost up to
$2,000
$1,000
Energy Star Heat Pump Water
Heater
$700
$350
Electric Vehicle Ready
100% of product
50% of product
cost up to
cost up to
$3,000
$1,500;
(4) for the construction of a new sustainable residential building that is broadband ready and electric vehicle ready and is completed on or after January 1, 2022, the amount of credit shall be calculated:
(a) based on the certification level the building has achieved in the rating level and the amount of qualified occupied square footage in the building, as indicated on the following chart:
Rating Level Qualified Tax Credit Occupied Per Square Square Footage Foot LEED-H Platinum Up to 2,000 $5.50 LEED-H Gold Up to 2,000 $3.80 Build Green Emerald Up to 2,000 $5.50 Build Green Gold Up to 2,000 $3.80 Manufactured Housing Up to 2,000 $2.00; and
Rating Level
Qualified
Tax Credit
Occupied
Per Square
Square Footage
Foot
LEED-H Platinum
Up to 2,000
$5.50
LEED-H Gold
Up to 2,000
$3.80
Build Green Emerald
Up to 2,000
$5.50
Build Green Gold
Up to 2,000
$3.80
Manufactured Housing
Up to 2,000
$2.00; and
(b) with additional amounts based on the additional criteria and the amount of qualified occupied square footage, as indicated in the following chart:
Additional Criteria Qualified Tax Credit Occupied Per Square Square Footage Foot Fully Electric Building Up to 2,000 $1.00 Zero Carbon, Energy, Waste or Water Certified Up to 2,000 $0.25; and
Additional Criteria
Qualified
Tax Credit
Occupied
Per Square
Square Footage
Foot
Fully Electric Building
Up to 2,000
$1.00
Zero Carbon, Energy,
Waste or Water Certified
Up to 2,000
$0.25; and
(5) for the installation of the following energy-conserving products to an existing residential building, the amount of credit shall be based on the cost of the product installed, which shall include installation costs, and if the building is affordable housing, per product installed:
Product Amount of Credit Affordable Non-Affordable Housing Housing Energy Star Air Source Heat Pump $2,000 $1,000 Energy Star Ground Source Heat Pump $2,000 $1,000 Energy Star Windows and Doors 100% of product 50% of product cost up to cost up to $1,000 $500 Insulation Improvements That Meet Rules of the Energy, Minerals and Natural Resources Department 100% of product 50% of product cost up to cost up to $2,000 $1,000 Energy Star Heat Pump Water Heater $700 $350 Electric Vehicle Ready $1,000 $500.
Product
Amount of Credit
Affordable
Non-Affordable
Housing
Housing
Energy Star Air
Source Heat Pump
$2,000
$1,000
Energy Star Ground
Source Heat Pump
$2,000
$1,000
Energy Star
Windows and Doors
100% of product
50% of product
cost up to
cost up to
$1,000
$500
Insulation Improvements That
Meet Rules of the
Energy, Minerals and Natural
Resources Department
100% of product
50% of product
cost up to
cost up to
$2,000
$1,000
Energy Star Heat Pump Water
Heater
$700
$350
Electric Vehicle Ready
$1,000
$500.
C. A person that is a building owner may apply for a certificate of eligibility for the 2021 sustainable building corporate income tax credit from the energy, minerals and natural resources department on forms and in a manner prescribed by that department after the construction, installation or renovation of the sustainable building or installation of energy-conserving products in an existing building is complete. Completed applications shall be considered in the order received. If the energy, minerals and natural resources department determines that the building owner meets the requirements of this subsection and that the building with respect to which the application is made meets the requirements of this section for a 2021 sustainable building corporate income tax credit, the energy, minerals and natural resources department may issue a dated certificate of eligibility to the building owner, subject to the limitations in Subsection D of this section. The certificate shall include the rating system certification level awarded to the building, the amount of qualified occupied square footage in the building, a calculation of the amount of 2021 sustainable building corporate income tax credit for which the building owner is eligible, the identification number, date of issuance and the first taxable year that the credit shall be claimed. The energy, minerals and natural resources department may issue rules governing the procedure for administering the provisions of this subsection. The energy, minerals and natural resources department may issue a certificate of eligibility to a building owner that is:
(1) the owner of the sustainable residential building at the time the certification level for the building is awarded; or
(2) the subsequent purchaser of a sustainable residential building with respect to which no tax credit has been previously claimed.
D. Except as provided in Subsection E of this section, the energy, minerals and natural resources department may issue a certificate of eligibility only if the aggregate amount of 2021 sustainable building corporate income tax credits represented by certificates of eligibility issued by the energy, minerals and natural resources department pursuant to this section and Section 7-2-18.32 NMSA 1978 shall not exceed in any calendar year an aggregate amount of:
(1) one million dollars ($1,000,000) with respect to the construction of new sustainable commercial buildings;
(2) two million dollars ($2,000,000) with respect to the construction of new sustainable residential buildings that are not manufactured housing;
(3) two hundred fifty thousand dollars ($250,000) with respect to the construction of new sustainable residential buildings that are manufactured housing;
(4) one million dollars ($1,000,000) with respect to the renovation of large commercial buildings; and
(5) two million nine hundred thousand dollars ($2,900,000) with respect to the installation of energy-conserving products in existing commercial buildings pursuant to Paragraph (3) of Subsection B of this section and existing residential buildings pursuant to Paragraph (5) of Subsection B of this section.
E. For any taxable year that the energy, minerals and natural resources department determines that applications for sustainable building tax credits for any type of sustainable building pursuant to Subsection D of this section are less than the aggregate limit for that type of sustainable building for that taxable year, the energy, minerals and natural resources department shall allow the difference between the aggregate limit and the applications to be added to the aggregate limit of another type of sustainable building for which applications exceeded the aggregate limit for that taxable year. Any excess not used in a taxable year shall not be carried forward to subsequent taxable years. The energy, minerals and natural resources department shall provide the department appropriate information for all certificates of eligibility in a secure manner on regular intervals agreed upon by both departments.
F. Installation of a solar thermal system or a photovoltaic system eligible for the new solar market development tax credit shall not be used as a component of qualification for the rating system certification level used in determining eligibility for the 2021 sustainable building corporate income tax credit, unless a new solar market development tax credit has not been claimed with respect to that system and the building owner and the taxpayer claiming the 2021 sustainable building tax credit certify that such a tax credit will not be claimed with respect to that system.
G. A taxpayer allowed a tax credit pursuant to this section shall claim the credit on forms and in a manner required by the department.
H. That portion of a 2021 sustainable building corporate income tax credit approved by the department that exceeds the taxpayer's corporate income tax liability for the taxable year in which the credit is claimed may be carried forward for up to seven consecutive taxable years. A certificate of eligibility for a 2021 sustainable building corporate income tax credit may be sold, exchanged or otherwise transferred to another taxpayer for the full value of the credit. The parties to such a transaction shall notify the department of the sale, exchange or transfer within ten days of the sale, exchange or transfer.
I. A taxpayer that otherwise qualifies and claims a 2021 sustainable building corporate income tax credit with respect to a sustainable building owned by a partnership or other business association of which the taxpayer is a member may claim a credit only in proportion to that taxpayer's interest in the partnership or association. The total credit claimed in the aggregate by all members of the partnership or association with respect to the sustainable building shall not exceed the amount of the credit that could have been claimed by a sole owner of the property.
J. The tax credit provided by this section shall be included in the tax expenditure report pursuant to Section 7-1-84 NMSA 1978 with an analysis of the effectiveness and cost of the tax credit.
K. For the purposes of this section:
(1) "broadband ready" means a building with an internet connection capable of connecting to a broadband provider;
(2) "build green emerald" means the emerald level certification standard adopted by build green New Mexico, which includes water conservation standards and uses forty percent less energy than is required by the prescriptive path of the most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department;
(3) "build green gold" means the gold level certification standard adopted by build green New Mexico, which includes water conservation standards and uses thirty percent less energy than is required by the prescriptive path of the most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department;
(4) "building owner" means a person who holds fee simple interest in a property or a person who holds a leasehold interest in land owned by a federally recognized Indian nation, tribe or pueblo;
(5) "electric vehicle ready" means a property that provides for commercial buildings at least ten percent of parking spaces and for residential buildings at least one parking space with one forty-ampere, two-hundred-eight-volt or two-hundred-forty-volt dedicated branch circuit for servicing electric vehicles that terminates in a suitable termination point, such as a receptacle or junction box, and is located in reasonably close proximity to the proposed location of the parking spaces;
(6) "energy rating system index" means a numerical score given to a building where one hundred is equivalent to the 2006 international energy conservation code and zero is equivalent to a net-zero home. As used in this paragraph, "net-zero home" means an energy-efficient home where, on a source energy basis, the actual annual delivered energy is less than or equal to the on-site renewable exported energy;
(7) "Energy Star" means products and devices certified under the energy star program administered by the United States environmental protection agency and United States department of energy that meet the specified performance requirements at the installed locations;
(8) "fully electric building" means a building that uses a permanent supply of electricity as the source of energy for all space heating, water heating, including pools and spas, cooking appliances and clothes drying appliances and, in the case of a new building, has no natural gas or propane plumbing installed in the building or, in the case of an existing building, has no connected natural gas or propane plumbing;
(9) "LEED" means the most current leadership in energy and environmental design green building rating system guidelines developed and adopted by the United States green building council;
(10) "LEED-CI" means the LEED rating system for commercial interiors;
(11) "LEED-CS" means the LEED rating system for the core and shell of buildings;
(12) "LEED-EB" means the LEED rating system for existing buildings;
(13) "LEED gold" means the rating in compliance with, or exceeding, the second-highest rating awarded by the LEED certification process;
(14) "LEED-H" means the LEED rating system for homes;
(15) "LEED-NC" means the LEED rating system for new buildings and major renovations;
(16) "LEED platinum" means the rating in compliance with, or exceeding, the highest rating awarded by the LEED certification process;
(17) "manufactured housing" means a multisectioned home that is:
(a) a manufactured home or modular home;
(b) a single-family dwelling with a heated area of at least thirty-six feet by twenty-four feet and a total area of at least eight hundred sixty-four square feet;
(c) constructed in a factory to the standards of the United States department of housing and urban development, the National Manufactured Housing Construction and Safety Standards Act of 1974 and the Housing and Urban Development Zone Code 2 or New Mexico construction codes up to the date of the unit's construction; and
(d) installed consistent with the Manufactured Housing Act [Chapter 60, Article 14 NMSA 1978] and rules adopted pursuant to that act relating to permanent foundations;
(18) "qualified occupied square footage" means the occupied spaces of the building as determined by:
(a) the United States green building council for those buildings obtaining LEED certification;
(b) the administrators of the build green New Mexico rating system for those homes obtaining build green New Mexico certification; and
(c) the United States environmental protection agency for Energy Star-certified manufactured homes;
(19) "person" does not include state, local government, public school district or tribal agencies;
(20) "sustainable building" means either a sustainable commercial building or a sustainable residential building;
(21) "sustainable commercial building" means:
(a) a commercial building that is certified as any LEED platinum or gold for commercial buildings;
(b) a multifamily dwelling unit that is certified as LEED-H platinum or gold or build green emerald or gold and uses at least thirty percent less energy than is required by the prescriptive path of the most current applicable energy conservation code promulgated by the construction industries division of the regulation and licensing department for build green gold or LEED-H, or uses at least forty percent less energy than is required by the prescriptive path of the most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department for build green emerald or LEED platinum; or
(c) a building that: 1) is certified at LEED-NC, LEED-EB, LEED-CS or LEED-CI platinum or gold levels; 2) achieves any prerequisite for and at least one point related to commissioning under the LEED energy and atmosphere category, if included in the applicable rating system; and 3) has reduced energy consumption beginning January 1, 2012 by forty percent based on the national average for that building type as published by the United States department of energy as substantiated by the United States environmental protection agency target finder energy performance results form, dated no sooner than the schematic design phase of development;
(22) "sustainable residential building" means:
(a) a building used as a single-family residence that: 1) is certified as LEED-H platinum or gold or build green emerald or gold; 2) uses at least thirty percent less energy than is required by the prescriptive path of the most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department for build green gold or LEED-H, or uses at least forty percent less energy than is required by the prescriptive path of the most current residential energy conservation code promulgated by the construction industries division of the regulation and licensing department for build green emerald or LEED platinum; 3) has indoor plumbing fixtures and water-using appliances that, on average, have flow rates equal to or lower than the flow rates required for certification by WaterSense; 4) if landscape area is available at the front of the property, has at least one water line outside the building below the frost line that may be connected to a drip irrigation system; and 5) if landscape area is available at the rear of the property, has at least one water line outside the building below the frost line that may be connected to a drip irrigation system; or
(b) manufactured housing that is Energy Star-qualified;
(23) "tribal" means of, belonging to or created by a federally recognized Indian nation, tribe or pueblo;
(24) "WaterSense" means a program created by the federal environmental protection agency that certifies water-using products that meet the environmental protection agency's criteria for efficiency and performance;
(25) "zero carbon certified" means a building that is certified as LEED zero carbon by achieving a carbon-dioxide-equivalent balance of zero for the building;
(26) "zero energy certified" means a building that is certified as LEED zero energy by achieving a source energy use balance of zero for the building;
(27) "zero waste certified" means a building that is certified as LEED zero waste by achieving green building certification incorporated's true zero waste certification at the platinum level; and
(28) "zero water certified" means a building that is certified as LEED zero water by achieving a potable water use balance of zero for the building.
Laws 2021, ch. 84, § 4; 2022, ch. 47, § 10; 2025, ch. 130, § 59.
NMSA 1978, § 7-2A-31 Deduction; income from leasing a liquor license
7-2A-31. Deduction; income from leasing a liquor license
A. Prior to January 1, 2026, a taxpayer that is a liquor license lessor and that held the license on June 30, 2021 may claim a deduction from taxable income in an amount equal to the gross receipts from sales of alcoholic beverages made by each liquor license lessee in an amount, if the liquor license is a dispenser's license and sales of alcoholic beverages for consumption off premises are less than fifty percent of total alcoholic beverage sales, not to exceed fifty thousand dollars ($50,000) for each of four taxable years.
B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction to the department in a manner required by the department.
C. The deduction provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the deduction.
D. As used in this section:
(1) "alcoholic beverage" means alcoholic beverage as defined in the Liquor Control Act [Chapter 60, Articles 3A, 5A, 6A, 6B, 6C, 6E, 7A, 7B and 8A NMSA 1978];
(2) "dispenser's license" means a license issued pursuant to the provisions of the Liquor Control Act allowing the licensee to sell, offer for sale or have in the person's possession with the intent to sell alcoholic beverages both by the drink for consumption on the licensed premises and in unbroken packages, including growlers, for consumption and not for resale off the licensed premises;
(3) "growler" means a clean, refillable, resealable container that has a liquid capacity that does not exceed one gallon and that is intended and used for the sale of beer, wine or cider;
(4) "liquor license" means a dispenser's license issued pursuant to Section 60-6A-3 NMSA 1978 or a dispenser's license issued pursuant to Section 60-6A-12 NMSA 1978 issued prior to July 1, 2021;
(5) "liquor license lessee" means a person that leases a liquor license from a liquor license lessor; and
(6) "liquor license lessor" means a person that leases a liquor license to a third party.
Laws 2021, ch. 7, § 2; 2025, ch. 130, § 60.
Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18507/index.doFetched: 10/20/2026