Bill > SB141

This bill makes several changes to New Mexico's tax laws: First, it increases the corporate income tax rate from 5% to 6.9%, effective January 1, 2026. Second, it modifies the definition of "engaging in business" for out-of-state companies (including online marketplaces), lowering the threshold for taxation to $100,000 in gross receipts sourced to the state in the previous calendar year. Third, the bill creates a new tax deduction allowing businesses that did not claim any credits, deductions, or exemptions in the previous year to deduct up to $100,000 from their gross receipts, with restrictions to prevent companies from restructuring to exploit the deduction. The bill also includes a $100,000 appropriation to the Taxation and Revenue Department to help administer these new provisions, with funds to be used in fiscal years 2025 and 2026 for software and service enhancements. The corporate tax rate change and new provisions will apply to taxable years beginning on or after January 1, 2026, with the goal of potentially supporting small businesses and clarifying tax obligations for out-of-state businesses operating in New Mexico.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=141&year=25