New Mexico 2025 Regular Session

New Mexico House Bill HB14 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	~~HTRC/HB 14/a~~
2		-	~~Page 1~~
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	28	+	HOUSE BILL 14
	29	+	57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
	30	+	INTRODUCED BY
	31	+	Derrick J. Lente and Javier Martínez
28	32		AN ACT
29		-	RELATING TO TAXATION; REPEALING THE WORKING FAMILIES TAX
30		-	CREDIT AND ENACTING THE EARNED INCOME TAX CREDIT; CREATING
31		-	THE FOSTER PARENT AND GUARDIAN INCOME TAX CREDIT; AMENDING A
32		-	GROSS RECEIPTS TAX DEDUCTION FOR HEALTH CARE PRACTITIONERS TO
33		-	INCLUDE COINSURANCE PAID BY A PATIENT; INCREASING LIQUOR
34		-	EXCISE TAX RATES; AMENDING THE DISTRIBUTIONS OF THE LIQUOR
35		-	EXCISE TAX; CREATING THE TRIBAL ALCOHOL HARMS ALLEVIATION
36		-	FUND; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA
37		-	1978.
	33	+	RELATING TO TAXATION; REPEALING THE WORKING FAMILIES TAX CREDIT
	34	+	AND ENACTING THE EARNED INCOME TAX CREDIT.
38	35		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
39		-	SECTION 1. Section 7-2-18.15 NMSA 1978 (being Laws
40		-	~~2007,~~ Chapter 45, Section 9, as amended) is repealed and a
41		-	~~new~~ Section 7-2-18.15 NMSA 1978 is enacted to read:
42		-	"7-2-18.15. EARNED INCOME TAX CREDIT.--
	36	+	SECTION 1. Section 7-2-18.15 NMSA 1978 (being Laws 2007,
	37	+	Chapter 45, Section 9, as amended) is repealed and a new
	38	+	Section 7-2-18.15 NMSA 1978 is enacted to read:
	39	+	"7-2-18.15. [NEW MATERIAL ] EARNED INCOME TAX CREDIT.--
43	40		A. The credit provided by this section may be
44		-	referred to as the "earned income tax credit". A taxpayer
45		-	who is an eligible individual may claim the earned income tax
46		-	credit against the taxpayer's tax liability imposed pursuant
47		-	to the Income Tax Act in an amount equal to the credit
48		-	percentage of so much of the taxpayer's earned income for the
49		-	taxable year as does not exceed the earned income amount;
50		-	provided that the amount of the credit shall not exceed the
51		-	excess of: HTRC/HB 14/a
52		-	Page 2
	41	+	referred to as the "earned income tax credit". A taxpayer who
	42	+	is an eligible individual may claim the earned income tax
	43	+	credit against the taxpayer's tax liability imposed pursuant to
	44	+	the Income Tax Act in an amount equal to the credit percentage
	45	+	of so much of the taxpayer's earned income for the taxable year
	46	+	as does not exceed the earned income amount; provided that the
	47	+	.229590.5 underscored material = new
	48	+	[bracketed material] = delete
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78		-	~~(1)~~ the credit ~~percentage of~~ the ~~earned~~
79		-	income ~~amount; over~~
80		-	~~(2) the phaseout percentage of so much of~~
81		-	~~the adjusted gross income or, if greater,~~ the ~~earned income,~~
82		-	of the ~~taxpayer for the taxable year as exceeds the phaseout~~
83		-	amount.
	74	+	amount of the credit shall not exceed the excess of:
	75	+	(1) the credit percentage of the earned income
	76	+	amount; over
	77	+	(2) the phaseout percentage of so much of the
	78	+	adjusted gross income or, if greater, the earned income, of the
	79	+	taxpayer for the taxable year as exceeds the phaseout amount.
84	80		B. The credit percentage and the phaseout
85	81		percentage shall be determined as follows:
86	82		In the case of a taxpayer The credit The phaseout
87	83		with: percentage is: percentage is:
88		-	1 qualifying child 11.55% 4.55%
89		-	2 qualifying children ~~13.6~~% 6.15%
90		-	3 or more qualifying children 15.3% 6.15%
91		-	No qualifying children 2.6% 2.1%.
	84	+	1 qualifying child 10.2% 4.8%
	85	+	2 qualifying children 12% 6.3%
	86	+	3 or more qualifying children 13.5% 6.3%
	87	+	No qualifying children 2.3% 1.8%.
92	88		C. Except as provided in Subsections E and F of
93		-	this section, the earned income amount and the phaseout
94		-	~~amount~~ shall be determined as follows:
	89	+	this section, the earned income amount and the phaseout amount
	90	+	shall be determined as follows:
95	91		In the case of a taxpayer The earned The phaseout
96	92		with: income amount amount is:
97	93		is:
98		-	1 qualifying child $11,000 $36,000
99		-	2 or more qualifying children $15,~~000~~ $40,~~000~~
	94	+	1 qualifying child $11,000 $31,000
	95	+	2 or more qualifying children $15,200 $35,200
100	96		No qualifying children $8,000 $25,000.
101	97		D. For married individuals filing joint returns,
102		-	the phaseout amount shall be increased by five thousand HTRC/HB 14/a
103		-	Page 3
	98	+	the phaseout amount shall be increased by five thousand dollars
	99	+	.229590.5
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129		-	~~dollars~~ ($5,000).
	127	+	($5,000).
130	128		E. Except as provided in Subsection F of this
131	129		section, if the greater of an eligible individual's earned
132		-	income or adjusted gross income is less than the earned
133		-	~~income~~ amount and the amount of credit is less than one
134		-	~~hundred~~ dollars ($100), the amount of the credit shall be one
135		-	~~hundred~~ dollars ($100).
	130	+	income or adjusted gross income is less than the earned income
	131	+	amount and the amount of credit is less than one hundred
	132	+	dollars ($100), the amount of the credit shall be one hundred
	133	+	dollars ($100).
136	134		F. For the 2026 taxable year and each subsequent
137	135		taxable year, the earned income amounts and phaseout amounts
138		-	shown in the table in Subsection C of this section, the
139		-	amount of credit provided in Subsection E of this section and
140		-	the phaseout amount provided in Subsection D of this section
141		-	shall be adjusted to account for inflation. The department
142		-	shall make the adjustment by multiplying each amount of
143		-	credit by a fraction, the numerator of which is the consumer
144		-	price index ending during the prior taxable year and the
145		-	denominator of which is the consumer price index ending in
146		-	taxable year 2025. The result of the multiplication shall be
147		-	rounded to the nearest ten dollars ($10.00), except that if
148		-	the result would be an amount less than the corresponding
149		-	amount for the preceding taxable year, then no adjustment
150		-	shall be made.
	136	+	shown in the table in Subsection C of this section and the
	137	+	amount of credit provided in Subsection E of this section shall
	138	+	be adjusted to account for inflation. The department shall
	139	+	make the adjustment by multiplying each amount of credit by a
	140	+	fraction, the numerator of which is the consumer price index
	141	+	ending during the prior taxable year and the denominator of
	142	+	which is the consumer price index ending in taxable year 2025.
	143	+	The result of the multiplication shall be rounded to the
	144	+	nearest ten dollars ($10.00), except that if the result would
	145	+	be an amount less than the corresponding amount for the
	146	+	preceding taxable year, then no adjustment shall be made.
151	147		G. The secretary shall reflect the provisions of
152	148		Subsections B and C of this section in tables that shall have
153		-	income brackets of not greater than fifty dollars ($50.00) HTRC/HB 14/a
154		-	Page 4
	149	+	income brackets of not greater than fifty dollars ($50.00) each
	150	+	for:
	151	+	(1) earned income between zero and the amount
	152	+	.229590.5
	153	+	- 3 - underscored material = new
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180		-	each for:
181		-	(1) earned income between zero and the
182		-	amount of earned income at which the credit is phased out
183		-	under Subsection C of this section; and
	180	+	of earned income at which the credit is phased out under
	181	+	Subsection C of this section; and
184	182		(2) adjusted gross income between the dollar
185		-	amount at which the phaseout begins under Subsection C of
186		-	this section and the amount of adjusted gross income at which
187		-	the credit is phased out under that subsection.
188		-	H. That portion of credit that exceeds a
189		-	taxpayer's tax liability in the taxable year in which the
190		-	credit is claimed shall be refunded. A refund made to a
191		-	taxpayer pursuant to this section shall not be treated as
192		-	income.
193		-	I. A taxpayer allowed a tax credit pursuant to
194		-	this section shall report the amount of the credit to the
195		-	department in a manner required by the department.
	183	+	amount at which the phase out begins under Subsection C of this
	184	+	section and the amount of adjusted gross income at which the
	185	+	credit is phased out under that subsection.
	186	+	H. That portion of credit that exceeds a taxpayer's
	187	+	tax liability in the taxable year in which the credit is
	188	+	claimed shall be refunded. A refund made to a taxpayer
	189	+	pursuant to this section shall not be treated as income.
	190	+	I. A taxpayer allowed a tax credit pursuant to this
	191	+	section shall report the amount of the credit to the department
	192	+	in a manner required by the department.
196	193		J. The credit provided by this section shall be
197	194		included in the tax expenditure budget pursuant to Section
198		-	7-1-84 NMSA 1978, including the total annual aggregate cost
199		-	of the credit.
	195	+	7-1-84 NMSA 1978, including the total annual aggregate cost of
	196	+	the credit.
200	197		K. As used in this section:
201	198		(1) "earned income" means "earned income" as
202	199		defined in 26 U.S.C. 32(c)(2);
203		-	(2) "eligible individual" means a resident
204		-	who is: HTRC/HB 14/a
205		-	Page 5
	200	+	(2) "eligible individual" means a resident who
	201	+	is:
	202	+	(a) an "eligible individual" pursuant to
	203	+	the federal earned income tax credit who is eligible to claim
	204	+	the federal earned income tax credit in the taxable year; or
	205	+	.229590.5
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231		-	(a) an "eligible individual" pursuant
232		-	to the federal earned income tax credit who is eligible to
233		-	claim the federal earned income tax credit in the taxable
234		-	year; or
235	233		(b) an individual who would have been
236		-	eligible for the federal earned income tax credit but for
237		-	~~the:~~ 1) identification number requirement pursuant to 26
238		-	~~U.S.C.~~ 32(m), as that section may be amended or renumbered;
239		-	~~or 2) the~~ age requirement pursuant to 26 U.S.C.
240		-	~~32(c)(1)(A)(ii)(II), as~~ that section may be amended or
241		-	~~renumbered; provided that the~~ taxpayer is at least eighteen
242		-	~~years of age but has not reached~~ the age of twenty-five;
	234	+	eligible for the federal earned income tax credit but for the:
	235	+	1) identification number requirement pursuant to 26 U.S.C.
	236	+	32(m), as that section may be amended or renumbered; or 2) the
	237	+	age requirement pursuant to 26 U.S.C. 32(c)(1)(A)(ii)(II), as
	238	+	that section may be amended or renumbered; provided that the
	239	+	taxpayer is at least eighteen years of age but has not reached
	240	+	the age of twenty-five;
243	241		(3) "federal earned income tax credit" means
244	242		the federal tax credit allowed pursuant to 26 U.S.C. 32, as
245	243		that section may be amended or renumbered; and
246	244		(4) "qualifying child" means "qualifying
247	245		child" as defined by Section 152(c) of the Internal Revenue
248	246		Code, as that section may be amended or renumbered, but
249		-	includes any minor child or stepchild of the taxpayer who
250		-	would be a qualifying child for federal income tax purposes
251		-	if the public assistance contributing to the support of the
252		-	child or stepchild was considered to have been contributed by
253		-	the taxpayer."
254		-	SECTION 2. A new section of the Income Tax Act is
255		-	enacted to read: HTRC/HB 14/a
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282		-	"CREDIT--FOSTER PARENT AND GUARDIAN INCOME TAX CREDIT.--
283		-	A. For taxable years ending prior to January 1,
284		-	2031, a taxpayer who is a resident, who is not a dependent of
285		-	another individual and who is a foster parent or a guardian
286		-	of a child may claim a credit against the taxpayer's tax
287		-	liability imposed pursuant to the Income Tax Act. The credit
288		-	authorized pursuant to this section may be referred to as the
289		-	"foster parent and guardian income tax credit".
290		-	B. The amount of the tax credit shall be in an
291		-	amount equal to two hundred fifty dollars ($250) for each
292		-	month the taxpayer is a foster parent or guardian of a child
293		-	in the taxable year in which the tax credit is claimed;
294		-	provided that the taxpayer shall be a foster parent or
295		-	guardian for more than fifty percent of that month; and
296		-	provided further that the maximum amount of credit that may
297		-	be claimed by a taxpayer in a taxable year is three thousand
298		-	dollars ($3,000).
299		-	C. A taxpayer shall apply for certification of
300		-	eligibility for the tax credit from the children, youth and
301		-	families department on forms and in the manner prescribed by
302		-	that department. Except as provided in Subsection E of this
303		-	section, only one tax credit shall be certified per taxpayer
304		-	per taxable year. If the children, youth and families
305		-	department determines that the taxpayer meets the
306		-	requirements of this section, that department shall issue a HTRC/HB 14/a
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333		-	dated certificate of eligibility to the taxpayer providing
334		-	the amount of tax credit for which the taxpayer is eligible
335		-	and the taxable years in which the credit may be claimed.
336		-	The children, youth and families department shall provide the
337		-	department with the certificates of eligibility issued
338		-	pursuant to this subsection in an electronic format at
339		-	regularly agreed-upon intervals.
340		-	D. That portion of the tax credit that exceeds a
341		-	taxpayer's income tax liability in the taxable year in which
342		-	the credit is claimed shall be refunded to the taxpayer.
343		-	E. Married individuals filing separate returns for
344		-	a taxable year for which they could have filed a joint return
345		-	may each claim only one-half of the tax credit that would
346		-	have been claimed on a joint return.
347		-	F. A taxpayer allowed to claim a tax credit
348		-	pursuant to this section shall claim the tax credit in a
349		-	manner required by the department. The credit shall be
350		-	claimed within one taxable year of the end of the year in
351		-	which the children, youth and families department certifies
352		-	the credit.
353		-	G. The credit provided by this section shall be
354		-	included in the tax expenditure budget pursuant to Section
355		-	7-1-84 NMSA 1978, including the annual aggregate cost of the
356		-	credit.
357		-	H. As used in this section: HTRC/HB 14/a
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384		-	(1) "child" means an unemancipated
385		-	individual who has not reached eighteen years of age;
386		-	(2) "foster parent" means a person licensed
387		-	or certified by the children, youth and families department
388		-	or a child placement agency to provide care for children in
389		-	the custody of the department or agency; and
390		-	(3) "guardian" means a person appointed as a
391		-	guardian by a court or an Indian tribal authority pursuant to
392		-	the Kinship Guardianship Act, but does not include a person
393		-	appointed as a guardian ad litem."
394		-	SECTION 3. Section 7-9-93 NMSA 1978 (being Laws 2004,
395		-	Chapter 116, Section 6, as amended) is amended to read:
396		-	"7-9-93. DEDUCTION--GROSS RECEIPTS--CERTAIN RECEIPTS
397		-	FOR SERVICES PROVIDED BY HEALTH CARE PRACTITIONER OR
398		-	ASSOCIATION OF HEALTH CARE PRACTITIONERS.--
399		-	A. Receipts of a health care practitioner or an
400		-	association of health care practitioners for commercial
401		-	contract services or medicare part C services paid by a
402		-	managed care organization or health care insurer may be
403		-	deducted from gross receipts if the services are within the
404		-	scope of practice of the health care practitioner providing
405		-	the service. Receipts from fee-for-service payments by a
406		-	health care insurer may not be deducted from gross receipts.
407		-	B. Prior to July 1, 2031, receipts from
408		-	coinsurance, a copayment or a deductible paid by an insured HTRC/HB 14/a
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435		-	or enrollee to a health care practitioner or an association
436		-	of health care practitioners for commercial contract services
437		-	pursuant to the terms of the insured's health insurance plan
438		-	or enrollee's managed care health plan may be deducted from
439		-	gross receipts if the services are within the scope of
440		-	practice of the health care practitioner providing the
441		-	service.
442		-	C. The deductions provided by this section shall
443		-	be applied only to gross receipts remaining after all other
444		-	allowable deductions available under the Gross Receipts and
445		-	Compensating Tax Act have been taken.
446		-	D. A taxpayer allowed a deduction pursuant to this
447		-	section shall report the amount of the deduction separately
448		-	in a manner required by the department.
449		-	E. The tax deductions provided by this section
450		-	shall be included in the tax expenditure budget pursuant to
451		-	Section 7-1-84 NMSA 1978, including the annual aggregate cost
452		-	of the deductions.
453		-	F. As used in this section:
454		-	(1) "association of health care
455		-	practitioners" means a corporation, unincorporated business
456		-	entity or other legal entity organized by, owned by or
457		-	employing one or more health care practitioners; provided
458		-	that the entity is not:
459		-	(a) an organization granted exemption HTRC/HB 14/a
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486		-	from the federal income tax by the United States commissioner
487		-	of internal revenue as organizations described in Section
488		-	501(c)(3) of the United States Internal Revenue Code of 1986,
489		-	as that section may be amended or renumbered; or
490		-	(b) a health maintenance organization
491		-	or a hospital, hospice, nursing home or an entity that is
492		-	solely an outpatient facility or intermediate care facility
493		-	licensed by the health care authority;
494		-	(2) "commercial contract services" means
495		-	health care services performed by a health care practitioner
496		-	pursuant to a contract with a managed care organization or
497		-	health care insurer other than those health care services
498		-	provided for medicare patients pursuant to Title 18 of the
499		-	federal Social Security Act or for medicaid patients pursuant
500		-	to Title 19 or Title 21 of the federal Social Security Act;
501		-	(3) "copayment" or "coinsurance" means an
502		-	amount that a health care insurer or managed care health plan
503		-	requires an insured or enrollee to pay upon incurring an
504		-	expense for receiving medical services;
505		-	(4) "deductible" means the amount of covered
506		-	charges an insured or enrollee is required to pay in a plan
507		-	year for commercial contract services before the insured's
508		-	health insurance plan or enrollee's managed care health plan
509		-	begins to pay for applicable covered charges;
510		-	(5) "fee-for-service" means payment for HTRC/HB 14/a
511		-	Page 11
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537		-	health care services by a health care insurer for covered
538		-	charges under an indemnity insurance plan;
539		-	(6) "health care insurer" means a person
540		-	that:
541		-	(a) has a valid certificate of
542		-	authority in good standing pursuant to the New Mexico
543		-	Insurance Code to act as an insurer, health maintenance
544		-	organization or nonprofit health care plan or prepaid dental
545		-	plan; and
546		-	(b) contracts to reimburse licensed
547		-	health care practitioners for providing basic health services
548		-	to enrollees at negotiated fee rates;
549		-	(7) "health care practitioner" means:
550		-	(a) a chiropractic physician licensed
551		-	pursuant to the provisions of the Chiropractic Physician
552		-	Practice Act;
553		-	(b) a dentist or dental hygienist
554		-	licensed pursuant to the Dental Health Care Act;
555		-	(c) a doctor of oriental medicine
556		-	licensed pursuant to the provisions of the Acupuncture and
557		-	Oriental Medicine Practice Act;
558		-	(d) an optometrist licensed pursuant to
559		-	the provisions of the Optometry Act;
560		-	(e) an osteopathic physician licensed
561		-	pursuant to the provisions of the Medical Practice Act; HTRC/HB 14/a
562		-	Page 12
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588		-	(f) a physical therapist licensed
589		-	pursuant to the provisions of the Physical Therapy Act;
590		-	(g) a physician or physician assistant
591		-	licensed pursuant to the provisions of the Medical Practice
592		-	Act;
593		-	(h) a podiatric physician licensed
594		-	pursuant to the provisions of the Podiatry Act;
595		-	(i) a psychologist licensed pursuant to
596		-	the provisions of the Professional Psychologist Act;
597		-	(j) a registered lay midwife registered
598		-	by the department of health;
599		-	(k) a registered nurse or licensed
600		-	practical nurse licensed pursuant to the provisions of the
601		-	Nursing Practice Act;
602		-	(l) a registered occupational therapist
603		-	licensed pursuant to the provisions of the Occupational
604		-	Therapy Act;
605		-	(m) a respiratory care practitioner
606		-	licensed pursuant to the provisions of the Respiratory Care
607		-	Act;
608		-	(n) a speech-language pathologist or
609		-	audiologist licensed pursuant to the Speech-Language
610		-	Pathology, Audiology and Hearing Aid Dispensing Practices
611		-	Act;
612		-	(o) a professional clinical mental HTRC/HB 14/a
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639		-	health counselor, marriage and family therapist or
640		-	professional art therapist licensed pursuant to the
641		-	provisions of the Counseling and Therapy Practice Act who has
642		-	obtained a master's degree or a doctorate;
643		-	(p) an independent social worker
644		-	licensed pursuant to the provisions of the Social Work
645		-	Practice Act; and
646		-	(q) a clinical laboratory that is
647		-	accredited pursuant to 42 U.S.C. Section 263a but that is not
648		-	a laboratory in a physician's office or in a hospital defined
649		-	pursuant to 42 U.S.C. Section 1395x;
650		-	(8) "managed care health plan" means a
651		-	health care plan offered by a managed care organization that
652		-	provides for the delivery of comprehensive basic health care
653		-	services and medically necessary services to individuals
654		-	enrolled in the plan other than those services provided to
655		-	medicare patients pursuant to Title 18 of the federal Social
656		-	Security Act or to medicaid patients pursuant to Title 19 or
657		-	Title 21 of the federal Social Security Act;
658		-	(9) "managed care organization" means a
659		-	person that provides for the delivery of comprehensive basic
660		-	health care services and medically necessary services to
661		-	individuals enrolled in a plan through its own employed
662		-	health care providers or by contracting with selected or
663		-	participating health care providers. "Managed care HTRC/HB 14/a
664		-	Page 14
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690		-	organization" includes only those persons that provide
691		-	comprehensive basic health care services to enrollees on a
692		-	contract basis, including the following:
693		-	(a) health maintenance organizations;
694		-	(b) preferred provider organizations;
695		-	(c) individual practice associations;
696		-	(d) competitive medical plans;
697		-	(e) exclusive provider organizations;
698		-	(f) integrated delivery systems;
699		-	(g) independent physician-provider
700		-	organizations;
701		-	(h) physician hospital-provider
702		-	organizations; and
703		-	(i) managed care services
704		-	organizations; and
705		-	(10) "medicare part C services" means
706		-	services performed pursuant to a contract with a managed
707		-	health care provider for medicare patients pursuant to Title
708		-	18 of the federal Social Security Act."
709		-	SECTION 4. Section 7-17-5 NMSA 1978 (being Laws 1993,
710		-	Chapter 65, Section 8, as amended) is amended to read:
711		-	"7-17-5. IMPOSITION AND RATE OF LIQUOR EXCISE TAX.--
712		-	A. There is imposed on a wholesaler who sells
713		-	alcoholic beverages on which the tax imposed by this section
714		-	has not been paid an excise tax, to be referred to as the HTRC/HB 14/a
715		-	Page 15
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741		-	"liquor excise tax", at the following rates on alcoholic
742		-	beverages sold:
743		-	(1) on spirituous liquors, except as
744		-	provided in Paragraph (9) of this subsection, one dollar
745		-	ninety-two cents ($1.92) per liter;
746		-	(2) on beer, except as provided in Paragraph
747		-	(5) of this subsection, forty-nine cents ($.49) per gallon;
748		-	(3) on wine, except as provided in
749		-	Paragraphs (4) and (6) of this subsection, fifty-four cents
750		-	($.54) per liter;
751		-	(4) on fortified wine, one dollar eighty
752		-	cents ($1.80) per liter;
753		-	(5) on beer manufactured or produced by a
754		-	microbrewer and sold in this state; provided that proof is
755		-	furnished to the department that the beer was manufactured or
756		-	produced by a microbrewer, eight cents ($.08) per gallon on
757		-	the first thirty thousand barrels sold, twenty-eight cents
758		-	($.28) per gallon for all barrels sold over thirty thousand
759		-	barrels but less than sixty thousand barrels and forty-one
760		-	cents ($.41) per gallon for sixty thousand or more barrels
761		-	sold;
762		-	(6) on wine manufactured or produced by a
763		-	small winegrower and sold in this state; provided that proof
764		-	is furnished to the department that the wine was manufactured
765		-	or produced by a small winegrower: HTRC/HB 14/a
766		-	Page 16
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792		-	(a) ten cents ($.10) per liter on the
793		-	first eighty thousand liters sold;
794		-	(b) twenty cents ($.20) per liter on
795		-	each liter sold over eighty thousand liters but not over nine
796		-	hundred fifty thousand liters; and
797		-	(c) thirty cents ($.30) per liter on
798		-	each liter sold over nine hundred fifty thousand liters but
799		-	not over one million five hundred thousand liters;
800		-	(7) on cider, except as provided in
801		-	Paragraph (8) of this subsection, forty-nine cents ($.49) per
802		-	gallon;
803		-	(8) on cider manufactured or produced by a
804		-	small winegrower and sold in this state; provided that proof
805		-	is furnished to the department that the cider was
806		-	manufactured or produced by a small winegrower, eight cents
807		-	($.08) per gallon on the first thirty thousand barrels sold,
808		-	twenty-eight cents ($.28) per gallon for all barrels sold
809		-	over thirty thousand barrels but less than sixty thousand
810		-	barrels and forty-one cents ($.41) per gallon for sixty
811		-	thousand or more barrels sold; and
812		-	(9) on spirituous liquors manufactured or
813		-	produced by a craft distiller licensed pursuant to Section
814		-	60-6A-6.1 NMSA 1978; provided that proof is provided to the
815		-	department that the spirituous liquors were manufactured or
816		-	produced by a craft distiller, for products up to ten percent HTRC/HB 14/a
817		-	Page 17
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843		-	alcohol by volume, eight cents ($.08) per liter for the first
844		-	two hundred fifty thousand liters sold and twenty-eight cents
845		-	($.28) per liter for the next two hundred fifty thousand
846		-	liters sold and for products over ten percent alcohol by
847		-	volume, thirty-two cents ($.32) per liter on the first one
848		-	hundred seventy-five thousand liters sold and sixty-five
849		-	cents ($.65) per liter on the next two hundred thousand
850		-	liters sold.
851		-	B. The volume of wine transferred from one
852		-	winegrower to another winegrower for processing, bottling or
853		-	storage and subsequent return to the transferor shall be
854		-	excluded pursuant to Section 7-17-6 NMSA 1978 from the
855		-	taxable volume of wine of the transferee. Wine transferred
856		-	from an initial winegrower to a second winegrower remains a
857		-	tax liability of the transferor; provided that if the wine is
858		-	transferred to the transferee for the transferee's use or for
859		-	resale, the transferee then assumes the liability for the tax
860		-	due pursuant to this section.
861		-	C. A transfer of wine from a winegrower to a
862		-	wholesaler for distribution of the wine transfers the
863		-	liability for payment of the liquor excise tax to the
864		-	wholesaler upon the sale of the wine by the wholesaler."
865		-	SECTION 5. Section 7-1-6.40 NMSA 1978 (being Laws 1997,
866		-	Chapter 182, Section 1, as amended) is amended to read:
867		-	"7-1-6.40. DISTRIBUTION OF LIQUOR EXCISE TAX--LOCAL DWI HTRC/HB 14/a
868		-	Page 18
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894		-	GRANT FUND--CERTAIN MUNICIPALITIES--DRUG COURT FUND--TRIBAL
895		-	ALCOHOL HARMS ALLEVIATION FUND.--
896		-	A. A distribution pursuant to Section 7-1-6.1 NMSA
897		-	1978 in an amount equal to thirty-nine percent of the net
898		-	receipts attributable to the liquor excise tax shall be made
899		-	to the local DWI grant fund.
900		-	B. A distribution pursuant to Section 7-1-6.1 NMSA
901		-	1978 in an amount equal to five percent of the net receipts
902		-	attributable to the liquor excise tax shall be made to the
903		-	drug court fund.
904		-	C. A distribution pursuant to Section 7-1-6.1 NMSA
905		-	1978 in an amount equal to twelve and one-half percent of the
906		-	net receipts attributable to the liquor excise tax shall be
907		-	made to the tribal alcohol harms alleviation fund."
908		-	SECTION 6. TRIBAL ALCOHOL HARMS ALLEVIATION FUND.--The
909		-	"tribal alcohol harms alleviation fund" is created as a
910		-	nonreverting fund in the state treasury. The fund consists
911		-	of appropriations, distributions, gifts, grants, donations
912		-	and bequests made to the fund and income from investment of
913		-	the fund. The department of finance and administration shall
914		-	administer the fund, and money in the fund is subject to
915		-	appropriation by the legislature for alcohol harms
916		-	prevention, treatment and recovery services to individuals on
917		-	lands of Indian nations, tribes and pueblos, and to make
918		-	grants to Indian nations, tribes and pueblos to provide those HTRC/HB 14/a
919		-	Page 19
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945		-	services to those individuals. Money in the fund shall be
946		-	expended by warrant of the secretary of finance and
947		-	administration pursuant to vouchers signed by the secretary
948		-	or the secretary's authorized representative.
949		-	SECTION 7. DELAYED REPEAL.--Section 2 of this act is
950		-	repealed effective January 1, 2031.
951		-	SECTION 8. APPLICABILITY.--The provisions of Sections 1
952		-	and 2 of this act apply to taxable years beginning on or
953		-	after January 1, 2026.
954		-	SECTION 9. EFFECTIVE DATE.--
955		-	A. The effective date of the provisions of
956		-	Sections 1 and 2 of this act is January 1, 2026.
957		-	B. The effective date of the provisions of Section
958		-	3 of this act is July 1, 2026.
959		-	C. The effective date of the provisions of
960		-	Sections 4 through 6 of this act is July 1, 2025.
	247	+	includes any minor child or stepchild of the taxpayer who would
	248	+	be a qualifying child for federal income tax purposes if the
	249	+	public assistance contributing to the support of the child or
	250	+	stepchild was considered to have been contributed by the
	251	+	taxpayer."
	252	+	SECTION 2. APPLICABILITY.--The provisions of this act
	253	+	apply to taxable years beginning on or after January 1, 2025.
	254	+	- 5 -
	255	+	.229590.5