Bill > HB237

This bill creates a new gross receipts tax credit for small businesses in New Mexico, specifically targeting businesses with annual gross receipts of $1 million or less. Under the proposed legislation, eligible businesses can claim a tax credit equal to 25% of their tax liabilities against the state gross receipts tax, with a maximum credit of $20,000 per calendar year. To qualify, businesses must apply through the state department and cannot claim any other gross receipts tax credits in the same taxable period. If the credit amount exceeds the business's tax liability in a given period, the remaining credit can be carried forward to subsequent taxable periods. The bill requires businesses to report the credit amount to the department and mandates that the credit be included in the annual tax expenditure budget. This provision is designed to support small businesses by providing a financial relief mechanism and is set to take effect on July 1, 2025, applying to tax liabilities from that date forward. The bill also modifies existing law regarding municipal distributions of gross receipts taxes to account for these new credits.

Business and Industry

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=237&year=25