Bill > HB48

This bill creates a small business income tax deduction for businesses with certain base incomes and that employ at least one full-time-equivalent employee. The key provisions are: 1. Taxpayers who materially participate in the business activity of a qualified small business and earn qualified small business income can claim a deduction from net income, up to 50% of the first $50,000 in qualified small business income, 40% of the next $50,000, and so on, with no deduction for income over $250,000. 2. Taxpayers are not eligible for the deduction if their base income exceeds certain thresholds ($250,000 for single filers, $300,000 for heads of household, and $350,000 for married filing jointly). 3. The deduction cannot reduce a taxpayer's income tax liability to less than zero. 4. A "qualified small business" is defined as a sole proprietorship, partnership, or disregarded entity with $1 million or less in gross income, located in New Mexico, and employing at least 1 to 4 full-time-equivalent employees depending on the business's gross income. The provisions of this bill apply to taxable years beginning on or after January 1, 2017.

Budget and Finance, Business and Industry

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=48&year=17