All Roll Calls
Yes: 67 • No: 36
New MexicoSB 1512026 Regular SessionSenateWALLET
CORPORATE INCOME TAX CHANGES
Sponsored By: Peter Wirth (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 7 benefits, 1 costs, 1 mixed.
Physicians get a $10,000 tax credit
Eligible medical and osteopathic physicians get a $10,000 New Mexico income tax credit each year. They must hold a New Mexico license and provide at least 1,584 hours of care in the state that year. They must file an individual state return, not be another person's dependent, and obtain Department of Health certification. Completed certification applications are considered in order received. The credit applies to taxable years beginning before January 1, 2032; unused credit carries forward for up to three consecutive tax years instead of being refunded.
Tax refunds for local news employers
Local news organizations and eligible individual owners get a refundable credit for taxable years beginning before January 1, 2032. It covers 30% of up to $50,000 in cash wages per journalist, excluding employer payroll taxes and benefits. Each taxpayer can count up to 75 journalists; individual and corporate credits share a $4 million annual cap. Journalists must cover state or local news, live within 50 miles of their coverage area, and work more than 28 weeks. Organizations must publish print or digital news, pay at least one journalist, and disclose their owners or nonprofit board. They must also meet publication-history, local-news-content and funding limits; publicly traded organizations and those more than 49% publicly owned are excluded. Certification applications are due within one year after the wage payment calendar year ends and are considered in order received. Individual owners cannot be another person's dependent; partnership and LLC owners can divide credits by ownership share without exceeding the allowed total. Married owners filing separately can each claim only half the credit allowed on a joint return.
Tax refunds for local newspaper printers
Qualifying newspaper printers and eligible individual owners get refundable wage credits for taxable years beginning before January 1, 2032. The credit covers wages up to $10,000 per employee averaging at least 20 work hours weekly, or $5,000 below that level. Each taxpayer can count up to 100 employees; corporate and individual credits share a $1 million annual cap. Printers must have operated for at least five years, employ at least five qualified workers, and use a newspaper web press. Workers must perform pre-press, press or post-press duties at a New Mexico location for at least 25% of the tax year. Printers and associated news organizations must meet public-company ownership limits; news organizations also face publication-history, local-news, audience, ownership-disclosure and funding requirements. Certification applications are due within one year after the wage payment calendar year ends; completed individual-credit applications are considered in order received. Individual owners cannot be another person's dependent, and partnership or LLC credits can be divided by ownership share without exceeding the allowed total. Married owners filing separately can each claim only half the credit allowed on a joint return.
Eligible state employees get 1% raises
Eligible state employees get a 1% salary increase starting in the first full pay period after July 1, 2026. Employees must hold budgeted positions, finish probation, and have satisfactory job performance. The law provides $26.006 million from the general fund for fiscal year 2027. Finance officials must transfer money from the appropriate funds for covered salaries tied to fiscal year 2026 non-general-fund appropriations. Unspent balances return to their source funds at the end of fiscal year 2027.
More funding to retain school staff
For fiscal year 2027, the law provides $36.0437 million through the public school fund's state equalization guarantee distribution. It also provides $662,000 through the fund's transportation distribution. Both general-fund appropriations support staff recruitment and retention, including school transportation workers. Funding is described as comparable to an average 1% salary increase, but it does not guarantee each employee that raise. Unspent money returns to the general fund at the end of fiscal year 2027.
Employers get credits for high-wage jobs
The refundable high-wage jobs credit equals 8.5% of wages, capped at $12,750 per job for each qualifying period. It covers an initial 12-month period starting when employment begins and up to three consecutive periods afterward. Eligible jobs must be created from July 1, 2004, through June 30, 2036, and occupied at least 44 weeks per qualifying period. Annual wages must reach $60,000 within 10 miles of a municipality with at least 60,000 people, or in a class H county. Elsewhere, the wage threshold is $40,000. Employees must work in New Mexico and be residents at hire or within 180 days; specified dependents and related owners are excluded. Employers must meet location-based job-count requirements and development training eligibility policies from fiscal year 2019. A new job cannot have been filled by the same employer in New Mexico during the prior three years. Transfers, mergers, acquisitions, organizational changes and equivalent government-contractor replacements generally do not qualify, with a stated pending-application exception. Annual applications are due December 31 of the year after the qualifying period's closing calendar year. The credit offsets gross receipts and specified other taxes; amounts above that liability are refunded. Closing New Mexico operations can bar further credits and erase unclaimed approvals, subject to an exception; affected employers face at least a two-calendar-year reapplication wait. False certifications can trigger penalties, and state agencies must report annually on program cost and job impacts.
Housing suppliers get an affordable-building tax break
From July 1, 2027, through June 30, 2030, sellers can deduct qualifying construction materials and labor sales from taxable gross receipts. Sales must go to an Affordable Housing Act qualifying grantee for a single multifamily housing project. At least 80% of units must be affordable, primarily for households earning no more than 80% of area median income. That income limit is adjusted for family size. Buyers must provide a nontaxable transaction certificate or allowed alternative evidence, and sellers must report the deduction to the tax department.
Corporations must reverse some federal deductions
Corporations must add certain federal depreciation and interest deductions back to their New Mexico tax base. For bonus depreciation, the add-back equals the excess deduction under federal Sections 168(k) or 168(n) over Sections 168(a) through 168(j). The interest add-back covers extra deductions caused by Section 70303 of Public Law 119-21 changing federal Section 163(j)(8)(A). That interest remains eligible for carryforward under Section 163(j)(2). These add-backs can increase current state taxable income.
Foreign corporate income changes state taxes
New Mexico includes controlled foreign corporation income in the corporate tax base when federal taxable income includes it. This can increase affected corporations' taxable income. The state also includes the foreign corporation's property, payroll and sales factors to the extent its income enters net income. These factors determine the share assigned to New Mexico and can raise or lower that share.
Sponsors & Cosponsors
Sponsor
Peter Wirth
Democratic • Senate
Cosponsors
Cristina Parajón
Democratic • House
Heather Berghmans
Democratic • Senate
Natalie Figueroa
Democratic • Senate
Roll Call Votes
House vote • 2/18/2026
Final House Vote
Yes: 43 • No: 19
Senate vote • 2/15/2026
Final Senate Vote
Yes: 24 • No: 17
Actions Timeline
Signed by Governor - Chapter 69 - Mar. 11
3/11/2026SenateSenate has concurred with House Amendments
2/18/2026SenatePassed in the House of Representatives - Y:43 N:19
2/18/2026HouseHTRC: Reported by committee with Do Pass recommendation with amendment(s)
2/18/2026HouseSent to HTRC - Referrals: HTRC
2/16/2026SenatePassed in the Senate - Y:24 N:17
2/15/2026SenateSenate Floor Amendment
2/15/2026SenateSFC: Reported by committee with Do Not Pass but with a Do Pass recommendation on Committee Substitution
2/14/2026SenateSTBTC: Reported by committee with Do Not Pass but with a Do Pass recommendation on Committee Substitution
2/9/2026SenateSCC: Reported by committee to fall within the purview of a 30 day session
1/27/2026SenateSent to SCC - Referrals: SCC/STBTC/SFC
1/26/2026Senate
Bill Text
Final Version
3/11/2026
HTRC Committee Report 2/18/26
2/18/2026
Senate Floor Amendment 1 2/15/26
2/15/2026
SFC Committee Report 2/14/26
2/14/2026
SFC Committee Substitute 2/14/26
2/14/2026
STBTC Committee Report 2/09/26
2/9/2026
STBTC Committee Substitute 2/09/26
2/9/2026
SCC Committee Report 1/27/26
1/27/2026
Introduced
1/26/2026