New Mexico 2025 Regular Session

New Mexico House Bill HB326 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 326
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Anita Gonzales and Joseph L. Sanchez and Angelita Mejia
48	48	and Harlan Vincent and Susan K. Herrera
49	49	AN ACT
50	50	RELATING TO TAXATION; CREATING THE SMALL BUSINESS DISASTER
51	51	RELIEF INCOME TAX CREDIT.
52	52	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
53	53	SECTION 1. A new section of the Income Tax Act is enacted
54	54	to read:
55	55	"[NEW MATERIAL] SMALL BUSINESS DISASTER RELIEF INCOME TAX
56	56	CREDIT.--
57	57	A. A taxpayer who is not a dependent of another
58	58	individual and who is the owner of a small business located in
59	59	an area declared as a disaster area by the governor may claim a
60	60	credit against the taxpayer's tax liability imposed pursuant to
61	61	the Income Tax Act as provided in this section. The credit
62	62	provided by this section may be referred to as the "small
63	63	business disaster relief income tax credit".
64	64	.229718.1 underscored material = new
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91	91	B. The amount of credit shall be in an amount equal
92	92	to five thousand dollars ($5,000).
93	93	C. To be eligible for the credit, the taxpayer
94	94	shall be an owner of a business that:
95	95	(1) is located in an area declared by the
96	96	governor as a disaster in the taxable year for which the credit
97	97	is claimed;
98	98	(2) has been in operation for at least two
99	99	consecutive taxable years, including the taxable year for which
100	100	the credit is claimed;
101	101	(3) can demonstrate that it has sustained a
102	102	thirty percent decline in gross revenue due to the disaster;
103	103	and
104	104	(4) had an annual gross revenue of less than
105	105	two million dollars ($2,000,000) in the taxable year for which
106	106	the credit is claimed.
107	107	D. A taxpayer shall apply for certification of
108	108	eligibility for the tax credit from the economic development
109	109	department on forms and in the manner prescribed by that
110	110	department. Except as provided in Subsections F and G of this
111	111	section, only one tax credit shall be certified per taxpayer
112	112	per taxable year. If the economic development department
113	113	determines that the taxpayer meets the requirements of this
114	114	section, that department shall issue a dated certificate of
115	115	eligibility to the taxpayer providing the amount of tax credit
116	116	.229718.1
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144	144	for which the taxpayer is eligible and the taxable years in
145	145	which the credit may be claimed. The economic development
146	146	department shall provide the department with the certificates
147	147	of eligibility issued pursuant to this subsection in an
148	148	electronic format at regularly agreed upon intervals.
149	149	E. A taxpayer allowed to claim the credit shall
150	150	claim the credit in a manner required by the department. The
151	151	credit shall be claimed within one year of receiving
152	152	certification from the economic development department. The
153	153	taxpayer shall claim the amount certified and approved against
154	154	the taxpayer's income tax liability. Any amount of credit that
155	155	exceeds the taxpayer's income tax liability shall be refunded
156	156	to the taxpayer.
157	157	F. Married individuals filing separate returns for
158	158	a taxable year for which they could have filed a joint return
159	159	may each claim only one-half of the credit that would have been
160	160	claimed on a joint return.
161	161	G. A taxpayer may be allocated the right to claim
162	162	the credit in a proportion to the taxpayer's ownership interest
163	163	if the taxpayer owns an interest in a business entity that is
164	164	taxed for federal income tax purposes as a partnership or
165	165	limited liability company and that business entity has met all
166	166	of the requirements to be eligible for the credit. The total
167	167	credit claimed by all members of the partnership or limited
168	168	liability company shall not exceed the allowable credit
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197	197	pursuant to this section.
198	198	H. The credit provided by this section shall be
199	199	included in the tax expenditure budget pursuant to Section
200	200	7-1-84 NMSA 1978, including the annual aggregate cost of the
201	201	credit."
202	202	SECTION 2. APPLICABILITY.--The provisions of this act
203	203	apply to taxable years beginning on or after January 1, 2025.
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205	205	.229718.1