New Mexico legislation · 2026 Regular Session
New Mexico SB151: CORPORATE INCOME TAX CHANGES
Status: Signed into law, March 11, 2026
What the bill says
An act relating to taxation; decoupling from certain provisions of federal law relating to corporate income tax by amending the definition of "base income" in the corporate income and franchise tax act to conform to the federal inclusion of certain income of controlled foreign corporations and subtracting amounts deducted for bonus depreciation and interest expenses; providing that apportionment rules apply to attributed income from a controlled foreign corporation; creating the local journalist employment income tax credit and the local journalist employment corporate income tax credit…
From the enrolled text, March 11, 2026:
AN ACT RELATING TO TAXATION; DECOUPLING FROM CERTAIN PROVISIONS OF FEDERAL LAW RELATING TO CORPORATE INCOME TAX BY AMENDING THE DEFINITION OF "BASE INCOME" IN THE CORPORATE INCOME AND FRANCHISE TAX ACT TO CONFORM TO THE FEDERAL INCLUSION OF CERTAIN INCOME OF CONTROLLED FOREIGN CORPORATIONS AND SUBTRACTING AMOUNTS DEDUCTED FOR BONUS DEPRECIATION AND INTEREST EXPENSES; PROVIDING THAT APPORTIONMENT RULES APPLY TO ATTRIBUTED INCOME FROM A CONTROLLED FOREIGN CORPORATION; CREATING THE LOCAL JOURNALIST EMPLOYMENT INCOME TAX CREDIT AND THE LOCAL JOURNALIST EMPLOYMENT CORPORATE INCOME TAX CREDIT; CREATING A GROSS RECEIPTS TAX DEDUCTION FOR THE SALE OF CONSTRUCTION MATERIALS AND LABOR USED FOR THE DEVELOPMENT OF AFFORDABLE HOUSING; CREATING THE PHYSICIAN TAX CREDIT PURSUANT TO THE INCOME TAX ACT; CREATING THE LOCAL NEWS PRINTER INCOME TAX CREDIT AND THE LOCAL NEWS PRINTER CORPORATE INCOME TAX CREDIT; EXTENDING THE DATE OF ELIGIBILITY FOR THE HIGH-WAGE JOBS TAX CREDIT; MAKING APPROPRIATIONS TO PROVIDE SALARY INCREASES FOR STATE AND PUBLIC SCHOOL EMPLOYEES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: SECTION 1. Section 7-2A-2 NMSA 1978 (being Laws 1986, Chapter 20, Section 33, as amended) is amended to read: "7-2A-2. DEFINITIONS.--For the purpose of the Corporate SFC/STBTC/SB Page Income and Franchise Tax Act and unless the context requires otherwise: A. "bank" means any national bank, national banking association, state bank or …