HB 14 — EARNED INCOME TAX CREDIT

Upon the written application of a taxpayer and at the sole discretion of the secretary or the secretary's delegate, the secretary or the secretary's delegate may enter into an agreement with a taxpayer allowing the taxpayer to report values, gross receipts, deductions or the value of property on an estimated basis for gross receipts and compensating tax, oil and gas severance tax, oil and gas conservation tax, oil and gas emergency school tax, oil and gas equalization surtax and oil and gas ad valorem production tax purposes for a limited period of time not to exceed four years.

As used in this section, "estimated basis" means a methodology that is reasonably expected to approximate the tax that will be h due over the period of the agreement using summary rather than u » r t h detail data or alternate valuation applications or methods, g e l i provided that:

h r i s (1) nothing in this section shall be construed h , e h t u g to require the secretary or the secretary's delegate to enter e b l e e , gh into such an agreement;

and n d d i = = o h (2) the agreement must:

l ] b ,d i a º r e r = (a) specify the receipts, deductions or t e w d m a n o values to be reported on an estimated basis and the methodology d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 4 - e a n e d r e l u [ A d HTRC/HB 14 to be followed by the taxpayer in making the estimates;

(b) state the term of the agreement and the procedures for terminating the agreement prior to its expiration;

(c) be signed by the taxpayer or the taxpayer's representative and the secretary or the secretary's delegate;

and (d) contain a declaration by the taxpayer or the taxpayer's representative that all statements of fact made by the taxpayer or the taxpayer's representative in the taxpayer's application and the agreement are true and correct as to every material matter.

F.

The secretary may, by regulation, require any person doing business in the state to submit to the department information reports that are considered reasonable and necessary for the administration of any provision of law to h which the Tax Administration Act applies." g o SECTION 2.

Section 7-31-2 NMSA 1978 (being Laws 1959, t hr g e i k Chapter 54, Section 2, as amended) is amended to read:

h r i s "7-31-2.

DEFINITIONS.--As used in the Oil and Gas h , t, Emergency School Tax Act:

e u g e b l e e h A.

["commission"] "department" [or "division"] n d d i = = o h means the taxation and revenue department, the secretary of l ] b ,d i a º e taxation and revenue or any employee of the department r i = r t e w d m a n o exercising authority lawfully delegated to that employee by the d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 5 - e a n e d r e l u [ A d HTRC/HB 14 secretary;

B.

"production unit" means a unit of property designated by the department from which products of common ownership are severed;

C.

"severance" means the taking from the soil of any product in any manner whatsoever;

D.

"value" means the actual price received from products at the production unit, except as otherwise provided in the Oil and Gas Emergency School Tax Act;

E.

"product" or "products" means oil, including crude, slop or skim oil and condensate;

natural gas;

liquid hydrocarbon, including ethane, propane, isobutene, normal butane and pentanes plus, individually or any combination thereof;

and non-hydrocarbon gases, including carbon dioxide and helium;

F.

"operator" means any person:

h g (1) engaged in the severance of products from o t hr a production unit;

or g e i k (2) owning an interest in any product at the h r i s h time of severance who receives a portion or all of such product , t, e u g for the person's interest;

e b l e e h G.

"purchaser" means a person who is the first n d d i = = o h l ] b ,d purchaser of a product after severance from a production unit, i a º e r i = r except as otherwise provided in the Oil and Gas Emergency t e w d m a n o School Tax Act;

d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 6 - e a n e d r e l u [ A d HTRC/HB 14 H.

"person" means any individual, estate, trust, receiver, business trust, corporation, firm, copartnership, cooperative, joint venture, association, limited liability company or other group or combination acting as a unit, and the plural as well as the singular number;

I.

"interest owner" means a person owning an entire or fractional interest of whatsoever kind or nature in the products at the time of severance from a production unit or who has a right to a monetary payment that is determined by the value of such products;

J.

"stripper well property" means a crude oil or natural gas producing property that is assigned a single production unit number by the department and is certified by the oil conservation division of the energy, minerals and natural resources department pursuant to the Natural Gas and Crude Oil Production Incentive Act to have produced in the h preceding calendar year:

u » r (1) if a crude oil producing property, an t h g e average daily production of less than ten barrels of oil per l i h r i s eligible well per day;

h , e h (2) if a natural gas producing property, an t u g e b l average daily production of less than sixty thousand cubic feet e e , gh n d d i = = o h of natural gas per eligible well per day;

or l ] b ,d i a º r (3) if a property with wells that produce both e r = t e w d m a n o crude oil and natural gas, an average daily production of less d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 7 - e a n e d r e l u [ A d HTRC/HB 14 than ten barrels of oil per eligible well per day, as determined by converting the volume of natural gas produced by the well to barrels of oil by using a ratio of six thousand cubic feet to one barrel of oil;

K.

"average annual taxable value" means as applicable:

(1) the average of the taxable value per one thousand cubic feet, determined pursuant to Section 7-31-5 NMSA 1978, of all natural gas produced in New Mexico for the specified calendar year as determined by the department;

or (2) the average of the taxable value per barrel, determined pursuant to Section 7-31-5 NMSA 1978, of all oil produced in New Mexico for the specified calendar year as determined by the department;

L.

"tax" means the oil and gas emergency school tax and the oil and gas equalization surtax;

and h g M.

"volume" means the quantity of product severed o t hr reported using:

g e i k (1) oil, condensate and slop oil in barrels;

h r i s h and , t, e u g (2) natural gas, liquid hydrocarbons, helium e b l e e h and carbon dioxide in thousand cubic feet at a pressure base of n d d i = = o h l ] b ,d fifteen and twenty-five thousandths pounds per square inch." i a º e r i = r SECTION 3.

Section 7-31-4 NMSA 1978 (being Laws 1959, t e w d m a n o Chapter 54, Section 4, as amended) is amended to read:

d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 8 - e a n e d r e l u [ A d HTRC/HB 14 "7-31-4.

PRIVILEGE TAX LEVIED--COLLECTED BY DEPARTMENT-- RATE--INTEREST OWNER'S LIABILITY TO STATE--INDIAN LIABILITY.-- A.

There is [levied] imposed and shall be collected by the department a privilege tax, to be referred to as the "oil and gas emergency school tax", on [the business of every person severing products in this state] all products that are severed and sold.

The measure of the tax shall be:

(1) on oil and on oil and other liquid hydrocarbons removed from natural gas at or near the wellhead, except as provided in Paragraphs (4) and (5) of this subsection, three and [fifteen hundredths] fifteen-hundredths percent of the taxable value determined pursuant to Section 7-31-5 NMSA 1978;

(2) on carbon dioxide, helium and non- hydrocarbon gases, three and [fifteen hundredths] fifteen- hundredths percent of the taxable value determined pursuant to h Section 7-31-5 NMSA 1978;

g o (3) on natural gas, except as provided in t hr g e i k Paragraphs (6) and (7) of this subsection, [four] three and h r i s nine-tenths percent of the taxable value determined pursuant to h , t, Section 7-31-5 NMSA 1978;

e u g e b l e e h (4) on the oil and on other liquid n d d i = = o h hydrocarbons removed from natural gas at or near the wellhead l ] b ,d i a º e from a stripper well property, one and fifty-eight hundredths r i = r t e w d m a n o percent of the taxable value determined pursuant to Section d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 9 - e a n e d r e l u [ A d HTRC/HB 14 7-31-5 NMSA 1978, provided that the average annual taxable value of oil was equal to or less than fifteen dollars ($15.00) per barrel in the calendar year preceding July 1 of the fiscal year in which the tax rate is to be imposed;

(5) on the oil and on other liquid hydrocarbons removed from natural gas at or near the wellhead from a stripper well property, two and thirty-six hundredths percent of the taxable value determined pursuant to Section 7-31-5 NMSA 1978, provided that the average annual taxable value of oil was greater than fifteen dollars ($15.00) per barrel but not more than eighteen dollars ($18.00) per barrel in the calendar year preceding July 1 of the fiscal year in which the tax rate is to be imposed;

(6) on the natural gas removed from a stripper well property, two percent of the taxable value determined pursuant to Section 7-31-5 NMSA 1978, provided that the average h annual taxable value of natural gas was equal to or less than u » r t h one dollar fifteen cents ($1.15) per thousand cubic feet in the g e l i calendar year preceding July 1 of the fiscal year in which the h r i s tax rate is to be imposed;

and h , e h t u g (7) on the natural gas removed from a stripper e b l e e , gh well property, three percent of the taxable value determined n d d i = = o h pursuant to Section 7-31-5 NMSA 1978, provided that the average l ] b ,d i a º r e r = annual taxable value of natural gas was greater than one dollar t e w d m a n o fifteen cents ($1.15) per thousand cubic feet but not more than d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 10 - e a n e d r e l u [ A d HTRC/HB 14 one dollar thirty-five cents ($1.35) per thousand cubic feet in the calendar year preceding July 1 of the fiscal year in which the tax rate is to be imposed.

B.

Every interest owner, for the purpose of levying this tax, is deemed to be in the business of severing products and is liable for this tax to the extent of [his] the owner's interest in the value of the products or to the extent of [his] the owner's interest as may be measured by the value of the products.

C.

Any Indian tribe, Indian pueblo or Indian is liable for this tax to the extent authorized or permitted by law." SECTION 4.

A new section of the Oil and Gas Emergency School Tax Act, Section 7-31-4.1 NMSA 1978, is enacted to read:

"7-31-4.1.

[NEW MATERIAL] OIL AND GAS EQUALIZATION SURTAX.-- h A.

Except as provided in Subsection B of this u » r section, in addition to the oil and gas emergency school tax, t h g e there is imposed and shall be collected by the department a l i h r i s surtax, to be referred to as the "oil and gas equalization h , e h surtax", on products that are STBTCºoil and»STBTC oil and t u g e b l other liquid hydrocarbons removed from natural gas at or near e e , gh n d d i = = o h the wellhead and severed and sold.

If the average price of l ] b ,d i a º r west Texas intermediate crude in the previous quarter is e r = t e w d m a n o greater than or equal to fifty-five dollars ($55.00) per d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 11 - e a n e d r e l u [ A d HTRC/HB 14 barrel, the rate of the surtax is twenty-eight hundredths percent of the taxable value STBTCº, as determined pursuant to Section 7-31-5 NMSA 1978,»STBTC of the products that are severed and sold in the ensuing quarter.

B.

If the average price of west Texas intermediate crude in the previous quarter is less than fifty-five dollars ($55.00) per barrel, no surtax in the ensuing quarter shall be levied pursuant to this section.

C.

Any Indian tribe, Indian pueblo or Indian is liable for the surtax to the extent authorized or permitted by law." SECTION 5.

Section 7-31-7 NMSA 1978 (being Laws 1959, Chapter 54, Section 7, as amended) is amended to read:

"7-31-7.

PRICE INCREASE SUBJECT TO APPROVAL OF AGENCY OF UNITED STATES OF AMERICA, STATE OF NEW MEXICO OR COURT-- REFUND.--When an increase in the value of any product is h subject to the approval of any agency of the United States of u » r t h America or the state of New Mexico or any court, the increased g e l i value shall be subject to [this] tax.

In the event the h r i s increase in value is disapproved, either in whole or in part, h , e h t u g then the amount of tax [which] that has been paid on the e b l e e , gh disapproved part of the value shall be considered excess tax.

n d d i = = o h Any person who has paid any such excess tax may apply for a l ] b ,d i a º r e r = refund of that excess tax in accordance with the provisions of t e w d m a n o Section 7-1-26 NMSA 1978." d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 12 - e a n e d r e l u [ A d HTRC/HB 14 SECTION 6.

Section 7-31-8 NMSA 1978 (being Laws 1959, Chapter 54, Section 8) is amended to read:

"7-31-8.

PRODUCTS ON WHICH TAX HAS BEEN LEVIED-- [REGULATION BY COMMISSION] DEPARTMENT RULE.--[This tax] The oil and gas emergency school tax and the oil and gas equalization surtax shall not be levied more than once on the same product.

Reporting of products on which [this] tax has been paid shall be subject to [the regulation of the commission] department rule." SECTION 7.

Section 7-31-26 NMSA 1978 (being Laws 1991, Chapter 9, Section 38) is amended to read:

"7-31-26.

ADVANCE PAYMENT REQUIRED.-- A.

Any person required to make payment of tax pursuant to Section 7-31-10 or 7-31-11 NMSA 1978 shall make the advance payment required by this section.

B.

For the purposes of this section:

h (1) "advance payment" means the payment g o required to be made by this section in addition to any oil and t hr g e i k gas emergency school tax and oil and gas equalization surtax, h r i s penalty or interest due;

and h , t, (2) "average tax" means the aggregate amount e u g e b l e e h of tax, [net of] less any refunds or credits, paid by a person n d d i = = o h during the twelve-month period ending March 31 pursuant to the l ] b ,d i a º e Oil and Gas Emergency School Tax Act divided by the number of r i = r t e w d m a n o months during that period for which the person made payment.

d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 13 - e a n e d r e l u [ A d HTRC/HB 14 C.

Each year, prior to July 1, each person required to pay tax pursuant to the Oil and Gas Emergency School Tax Act shall compute the average tax for the period ending March 31 of that year.

The average tax calculated for a year shall be used during the twelve-month period beginning with July of that year and ending with June of the following year as the basis for making the advance payments required by Subsection D of this section.

D.

Every month, beginning with July 1991, every person required to pay tax in a month pursuant to the Oil and Gas Emergency School Tax Act shall pay, in addition to any amount of tax, interest or penalty due, an advance payment in an amount equal to the applicable average tax, except:

(1) if the person is making a final return under the Oil and Gas Emergency School Tax Act, no advance payment pursuant to this subsection is due for that return;

and h g (2) as provided in Subsection F of this o t hr section.

g e i k E.

Every month, beginning with tax payments in h r i s h August 1991, every person required to pay tax pursuant to the , t, e u g Oil and Gas Emergency School Tax Act may claim a credit equal e b l e e h to the amount of advance payment made in the previous month, n d d i = = o h l ] b ,d except as provided in Subsection F of this section.

i a º e r i = r F.

If, in any month, a person is not required to t e w d m a n o pay tax pursuant to the Oil and Gas Emergency School Tax Act, d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 14 - e a n e d r e l u [ A d HTRC/HB 14 that person is not required to pay the advance payment and may not claim a credit pursuant to Subsection E of this section;

provided that, in any succeeding month when the person has liability under the Oil and Gas Emergency School Tax Act, the person may claim a credit for any advance payment made and not credited.

G.

In the event that the date by which a person is required to pay the tax pursuant to the Oil and Gas Emergency School Tax Act is accelerated to a date earlier than the twenty-fifth day of the second month following the month of production, the advance payment provision contained in this section is [null and] void and any money held as advance payments shall be credited to the taxpayers' accounts."»Sfl1 SECTION CCº Sfl1º8.»Sfl1 Sfl1º1.»Sfl1»CC CCº1.»CC Section 7-2-18.15 NMSA 1978 (being Laws 2007, Chapter 45, Section 9, as amended) is repealed and a new Section 7-2-18.15 h NMSA 1978 is enacted to read:

u » r "7-2-18.15.

[NEW MATERIAL ] EARNED INCOME TAX CREDIT.-- t h g e A.

The credit provided by this section may be l i h r i s referred to as the "earned income tax credit".

A taxpayer who h , e h is an eligible individual may claim the earned income tax t u g e b l credit against the taxpayer's tax liability imposed pursuant to e e , gh n d d i = = o h the Income Tax Act in an amount equal to the credit percentage l ] b ,d i a º r of so much of the taxpayer's earned income for the taxable year e r = t e w d as does not exceed the earned income amount;

provided that the m a n o d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 15 - e a n e d r e l u [ A d HTRC/HB 14 amount of the credit shall not exceed the excess of:

(1) the credit percentage of the earned income amount;

1 qualifying child 11.55% 4.55% 2 qualifying children 13.6% 6.15% 3 or more qualifying children 15.3% 6.15% No qualifying children 2.6% 2.1%.

Except as provided in Subsections E and F of this section, the earned income amount and the phaseout amount h shall be determined as follows:

g o In the case of a taxpayer The earned The phaseout t hr g e i k with:

h r i s is:

h , t, 1 qualifying child $11,000 $36,000 e u g e b l e e h 2 or more qualifying children $15,000 $40,000 n d d i = = o h No qualifying children $8,000 $25,000.

l ] b ,d i a º e D.

For married individuals filing joint returns, r i = r t e w d the phaseout amount shall be increased by five thousand dollarsHTRC/HB m14/a aPage n2 odollars d($5,000). m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 16 - e a n e d r e l u [ A d HTRC/HB 14 ($5,000).

h u » r The result of the multiplication shall be rounded to the t h g e nearest ten dollars ($10.00), except that if the result would l i h r be an amount less than the corresponding amount for the i s h , e h preceding taxable year, then no adjustment shall be made.

t u g e b l G.

The secretary shall reflect the provisions of e e , gh n d d i Subsections B and C of this section in tables that shall have = = o h l ] b ,d i a º r income brackets of not greater than fifty dollars ($50.00) eachHTRC/HB e14/a rPage =3 teach e w d for:

m(1) aearned nincome obetween dzero mand :the amount of earned income at which the credit is phased out under Subsection C of this section;

band r(2) eadjusted tgross ºincome obetween tthe ndollar =amount .231874.4AICat Marchwhich 22,the 2025phaseout (10:06am)begins sunder kSubsection mC eof -this 17section - e a n e d r e l u [ A d HTRC/HB 14 (1) earned income between zero and the amount of earnedadjusted gross income at which the credit is phased out under Subsectionthat Csubsection. of this section;

and (2) adjusted gross income between the dollar amount at which the phase out begins under Subsection C of this section and the amount of adjusted gross income at which the credit is phased out under that subsection.

The credit provided by this section shall be included in the tax expenditure budget pursuant to Section h 7-1-84 NMSA 1978, including the total annual aggregate cost of g o the credit.

t hr g e i k K.

h r i s (1) "earned income" means "earned income" as h , t, defined in 26 U.S.C.

e u g e b l e e h (2) "eligible individual" means a resident who n d d i = = o h is:

lHTRC/HB ]14/a bPage ,d4 i a º e (a) an "eligible individual" pursuant to r i = r t e w d the federal earned income tax credit who is eligible to claim mthe afederal nearned oincome dtax mcredit :in the taxable year;

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 18 - e a n e d r e l u [ A d HTRC/HB 14 the federal earned income tax credit in the taxable year;

and (4) "qualifying child" means "qualifying child" as defined by Section 152(c) of the Internal Revenue Code, as that section may be amended or renumbered, but includes any minor child or stepchild of the taxpayer who would be a qualifying child for federal income tax purposes if the h u » r public assistance contributing to the support of the child or t h g e stepchild was considered to have been contributed by the l i h r taxpayer." iSECTION s2. h , e h CCº STBTCºSECTION Sfl1º9.»Sfl1 Sfl1º2.»Sfl1 A new t u g e b l section of the Income Tax Act is enacted to read:

eA enew ,section ghof nthe dIncome dTax iAct "[NEWis MATERIAL]enacted VOLUNTEERto EMERGENCYread: MEDICAL SERVICES = = o h l ] b ,d i a º r INCOME TAX CREDIT.-- e r = t e w d A.

ForHTRC/HB taxable14/a yearsPage ending5 prior"CREDIT--FOSTER toPARENT JanuaryAND 1,GUARDIAN mINCOME aTAX nCREDIT.-- oA. d m :

bFor rtaxable eyears tending ºprior oto tJanuary n1, =2031, .231874.4AIC March 22, 2025 (10:06am) s k m e - 19 - e a ntaxpayer ewho dis r e l u [ A d HTRC/HB 14 2030, a taxpayerresident, who is not a dependent of another individual,individual is an eligible emergency medical services volunteer and volunteerswho inis Newa Mexicofoster withparent an emergency medical service agency or ambulancea certifiedguardian byof the bureau at least fifty-two times in a taxablechild year may claim a tax credit against the taxpayer's tax liability for that taxable year imposed pursuant to the Income Tax Act.

The tax credit provided in this section may be referred to as the "volunteer emergency medical services income tax credit".

B.

The volunteer emergency medical services income tax credit shall be in an amount equal to five hundred dollars ($500).

C.

A taxpayer shall apply for certification of eligibility from the bureau on forms and in the manner prescribed by the bureau.

The application shall include proof that the taxpayer was an active emergency medical services h volunteer for the entire taxable year for which the credit is u » r t h being claimed and volunteered in New Mexico with an emergency g e l i medical service agency or ambulance certified by the bureau at h r i s least fifty-two times in the taxable year.

h , e h t u g D.

If the bureau determines that a taxpayer meets e b l e e , gh the requirements to claim the tax credit, the bureau shall n d d i = = o h issue to the taxpayer a dated certificate of eligibility l ] b ,d i a º r e r = providing the amount of the tax credit for which the taxpayer t e w d m a n o is eligible and the taxable year in which the credit may be d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 20 - e a n e d r e l u [ A d HTRC/HB 14 claimed.

The aggregate amount of tax credits that may be certified for any calendar year is two million dollars ($2,000,000).

Completed applications shall be considered in the order received, and applications received after the limitation has been met in a calendar year shall not be approved.

The bureau shall provide the department with the certificates of eligibility issued pursuant to this subsection in an electronic format at regularly agreed-upon intervals.

E.

A taxpayer allowed to claim the tax credit shall claim the tax credit in a manner prescribed by the department.

A taxpayer shall not be allowed to claim the tax credit for the same taxable year the taxpayer has claimed the volunteer firefighter income tax credit.

F.

That portion of the tax credit that exceeds a taxpayer's tax liability in the taxable year in which the tax credit is claimed shall be refunded to the taxpayer.

h G.

The tax credit provided by this section shall be g o included in the tax expenditure budget pursuant to Section t hr g e i k 7-1-84 NMSA 1978, including the annual aggregate cost of the h r i s tax credit.

h , t, H.

As used in this section:

e u g e b l e e h (1) "bureau" means the emergency medical n d d i = = o h systems bureau of the public health division of the department l ] b ,d i a º e of health;

r i = r t e w d m a n o (2) "eligible emergency medical services d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 21 - e a n e d r e l u [ A d HTRC/HB 14 volunteer" means a person who is licensed by the bureau and who functions within the emergency medical services system to provide initial emergency medical services as an unpaid volunteer with an emergency medical service agency or ambulance certified by the bureau;

(3) "emergency medical services" means the services rendered in response to an individual's need for immediate medical care to prevent loss of life or aggravation of physical or psychological illness or injury;

(4) "emergency medical services system" means a coordinated system of health care delivery that responds to the needs of the sick and injured and includes emergency medical services and emergency medical dispatch;

and (5) "to volunteer" includes responding to requests for emergency medical service or providing in a day at least one hour of on-duty volunteer station time." h SECTION Sfl1º10.»Sfl1 Sfl1º3.»Sfl1 A new section of the u » r t h Income Tax Act is enacted to read:

g e l i "[NEW MATERIAL] VOLUNTEER FIREFIGHTER INCOME TAX CREDIT.-- h r i s A.

For taxable years ending prior to January 1, h , e h t u g 2030, a taxpayer who is not a dependent of another individual, e b l e e , gh is an eligible volunteer firefighter and volunteers in New n d d i = = o h Mexico with a fire department approved by the state fire l ] b ,d i a º r e r = marshal's office at least fifty-two times in a taxable year may t e w d m a n o claim a tax credit against the taxpayer's tax liability for d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 22 - e a n e d r e l u [ A d HTRC/HB 14 that taxable year imposed pursuant to the Income Tax Act.

The tax credit provided in this section may be referred to as the "volunteer firefighter income tax credit".

B.

The volunteer firefighter income tax credit shall be in an amount equal to five hundred dollars ($500).

C.

A taxpayer shall apply for certification of eligibility from the state fire marshal's office on forms and in the manner prescribed by that office.

The application shall include proof that the taxpayer was an active volunteer for the entire taxable year for which the credit is being claimed and volunteered in New Mexico with a fire department approved by the state fire marshal's office at least fifty-two times in the taxable year.

D.

If the state fire marshal's office determines that a taxpayer meets the requirements to claim the tax credit, the office shall issue to the taxpayer a dated certificate of h eligibility providing the amount of the tax credit for which g o the taxpayer is eligible and the taxable year in which the t hr g e i k credit may be claimed.

The aggregate amount of tax credits h r i s that may be certified for any calendar year is two million h , t, dollars ($2,000,000).

Completed applications shall be e u g e b l e e h considered in the order received, and applications received n d d i = = o h after the limitation has been met shall not be approved.

The l ] b ,d i a º e state fire marshal's office shall provide the department with r i = r t e w d m a n o the certificates of eligibility issued pursuant to this d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 23 - e a n e d r e l u [ A d HTRC/HB 14 subsection in an electronic format at regularly agreed-upon intervals.

E.

A taxpayer allowed to claim the tax credit shall claim the tax credit in a manner prescribed by the department.

A taxpayer shall not be allowed to claim the tax credit for the same taxable year the taxpayer has claimed the volunteer emergency medical services income tax credit.

F.

That portion of the tax credit that exceeds a taxpayer's tax liability in the taxable year in which the tax credit is claimed shall be refunded to the taxpayer.

G.

The tax credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the tax credit.

H.

As used in this section:

(1) "eligible volunteer firefighter" means a h g firefighter who is listed as an active member on the rolls of a o t hr fire department certified by the state fire marshal's office g e i k and who provides firefighter services as an unpaid volunteer;

h r i s h and , t, e u g (2) "to volunteer" includes responding to e b l e e h requests for a fire department service and providing in a day n d d i = = o h l ] b ,d at least one hour of on-duty station time."»STBTC»CC i a º e r i = r CCº STBTCºSECTION Sfl1º11.»Sfl1 Sfl1º4.»Sfl1 A new t e w d m a n o section of the Income Tax Act is enacted to read:

d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 24 - e a n e d r e l u [ A d HTRC/HB 14 "[NEW MATERIAL] VOLUNTEER SEARCH AND RESCUE INCOME TAX CREDIT.-- A.

For taxable years ending prior to January 1, 2030, a taxpayer who is not a dependent of another individual and volunteers in New Mexico at least six times or for at least sixty hours in a taxable year may claim a tax credit against the taxpayer's tax liability for that taxable year imposed pursuant to the Income Tax Act.

The tax credit provided in this section may be referred to as the "volunteer search and rescue income tax credit".

B.

The volunteer search and rescue income tax credit shall be in an amount equal to:

(1) two hundred fifty dollars ($250) if the taxpayer volunteers between six and eleven times or volunteers for a total of between sixty and one hundred twenty hours;

or (2) five hundred dollars ($500) if the h taxpayer volunteers twelve times or more or volunteers for a g o total of at least one hundred twenty hours.

t hr g e i k C.

A taxpayer shall apply for certification of h r i s eligibility from the resource officer on forms and in the h , t, manner prescribed by the resource officer.

If the resource e u g e b l e e h officer determines that a taxpayer meets the requirements to n d d i = = o h claim the tax credit, the resource officer shall issue to the l ] b ,d i a º e taxpayer a dated certificate of eligibility providing the r i = r t e w d m a n o amount of the tax credit for which the taxpayer is eligible and d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 25 - e a n e d r e l u [ A d HTRC/HB 14 the taxable year in which the credit may be claimed.

The aggregate amount of tax credits that may be certified for any calendar year shall not exceed one million five hundred thousand dollars ($1,500,000).

Completed applications shall be considered in the order received, and applications received after the limitation has been met shall not be approved.

The resource officer shall provide the department with the certificates of eligibility issued pursuant to this subsection in an electronic format at regularly agreed-upon intervals.

D.

A taxpayer allowed to claim the tax credit shall claim the tax credit in a manner prescribed by the department.

E.

That portion of the tax credit that exceeds a taxpayer's tax liability in the taxable year in which the tax credit is claimed shall be refunded to the taxpayer.

F.

Married individuals filing separate returns for a taxable year for which they could have filed a joint return h g may each claim only one-half of the volunteer search and rescue o t hr income tax credit that would have been claimed on a joint g e i k return.

h r i s h G.

The credit provided by this section shall be , t, e u g included in the tax expenditure budget pursuant to Section e b l e e h 7-1-84 NMSA 1978, including the annual aggregate cost of the n d d i = = o h l ] b ,d credit.

i a º e r i = r H.

As used in this section:

t e w d m a n o (1) "mission" means each separate group effort d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 26 - e a n e d r e l u [ A d HTRC/HB 14 of search and rescue that is approved and issued a mission number by the New Mexico state police division of the department of public safety;

(2) "resource officer" means the state search and rescue resource officer in the department of public safety;

(3) "search and rescue" means the employment, coordination and utilization of available resources and personnel in searching for, rendering aid to and preserving the lives of people lost, stranded, entrapped, injured or in distress and removing these people from the site of a disaster, emergency or hazard to a place of safety;

and (4) "volunteer" means participating in a search and rescue mission as a nonsalaried volunteer."»STBTC STBTCºSECTION Sfl1º12.»Sfl1 Sfl1º5.»Sfl1 A new section of the Income Tax Act is enacted to read:

"[NEW MATERIAL] LOCAL JOURNALIST EMPLOYMENT INCOME TAX h CREDIT.-- u » r A.

For taxable years ending prior to January 1, t h g e 2030, a taxpayer who is not a dependent of another individual l i h r i s and is an owner of a local news organization that employs a h , e h journalist may claim a credit against the taxpayer's tax t u g e b l liability imposed pursuant to the Income Tax Act in an amount e e , gh n d d i = = o h provided in Subsection B of this section.

The tax credit l ] b ,d i a º r provided by this section may be referred to as the "local e r = t e w d m a n o journalist employment income tax credit".

d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 27 - e a n e d r e l u [ A d HTRC/HB 14 B.

The amount of tax credit shall be in an amount equal to fifteen percent of compensation paid to each journalist employed by a local news organization.

C.

A taxpayer shall apply for certification of eligibility for the tax credit from the department on forms and in the manner prescribed by the department within one year following the end of the calendar year in which the compensation is paid.

A taxpayer shall not be eligible to receive a tax credit for more than seventy-five journalists whom the taxpayer employs as a local news organization and, except as provided in Subsections G and H of this section, a taxpayer shall not claim a tax credit for the same journalist more than once per taxable year.

D.

The total annual aggregate amount of local journalist employment income tax credits and local journalist employment corporate income tax credits that may be certified h in a calendar year shall not exceed two million dollars u » r t h ($2,000,000).

Completed applications shall be considered in the g e l i order received, and applications received after the limitation h r i s has been met shall not be approved.

h , e h t u g E.

If the department determines that the taxpayer e b l e e , gh meets the requirements of this section, the department shall n d d i = = o h issue a dated certificate of eligibility to the taxpayer l ] b ,d i a º r e r = providing the amount of tax credit for which the taxpayer is t e w d m a n o eligible and the taxable years in which the credit may be d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 28 - e a n e d r e l u [ A d HTRC/HB 14 claimed.

F.

That portion of tax credit that exceeds a taxpayer's income tax liability in the taxable year in which the credit is claimed shall be refunded to the taxpayer.

G.

Married individuals filing separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the tax credit that would have been claimed on a joint return.

H.

A taxpayer may be allocated the right to claim the tax credit in proportion to the taxpayer's ownership interest if the taxpayer owns an interest in a business entity that is taxed for federal income tax purposes as a partnership or limited liability company and the business entity has met all requirements to be eligible for the credit.

The total credit claimed by all members of the partnership or limited liability company shall not exceed the allowable credit h pursuant to this section.

g o I.

A taxpayer allowed to claim a tax credit t hr g e i k pursuant to this section shall claim the tax credit in a manner h r i s required by the department.

h , t, J.

The tax credit provided by this section shall be e u g e b l e e h included in the tax expenditure budget pursuant to Section n d d i = = o h 7-1-84 NMSA 1978, including the annual aggregate cost of the l ] b ,d i a º e tax credit.

r i = r t e w d m a n o K.

As used in this section:

d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 29 - e a n e d r e l u [ A d HTRC/HB 14 (1) "compensation" means not more than fifty thousand dollars ($50,000) in compensation paid by a local news organization to a journalist through the organization's payroll system, including that compensation that the journalist elects to defer or redirect or the journalist's contribution to a 401(k) or cafeteria plan program.

"Compensation" does not mean benefits or the organization's share of payroll taxes, social security or medicare contributions, federal or state unemployment insurance contributions or workers' compensation;

(2) "journalist" means a person who:

(a) is paid by a local news organization to regularly gather, prepare, collect, photograph, record, direct the recording of, produce, write, edit, report or publish news or information that concerns state or local events or other matters of public interest for dissemination to the state or a local community through reporting activities, h g including conducting interviews, observing current events or o t hr analyzing documents;

g e i k (b) resides within fifty miles of the h r i s h coverage area assigned by the local news organization;

and , t, e u g (c) works as a journalist for the local e b l e e h news organization for at least twenty-five percent of the n d d i = = o h l ] b ,d taxable year in which the credit is claimed;

and i a º e r i = r (3) "local news organization" means an entity t e w d m a n o that:

d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 30 - e a n e d r e l u [ A d HTRC/HB 14 (a) provides a print or digital publication that engages professionals who regularly gather, prepare, collect, photograph, record, direct the recording of, produce, write, edit, report or publish news or information that concerns events in New Mexico or a local community in New Mexico or other matters of public interest for dissemination to New Mexico or a local community in New Mexico through reporting activities, including conducting interviews, observing current events or analyzing documents;

(b) pays at least one individual, either through employment or by contract with the entity, as a journalist;

(c) in the case of print publications, has published at least one print publication per month over the previous twenty-four months and holds a valid United States postal service periodical permit or has at least thirty percent h of its content dedicated to news concerning New Mexico or a u » r local community in New Mexico;

t h g e (d) in the case of digital-only l i h r i s entities, has published at least four originally produced h , e h stories about New Mexico or a local community in New Mexico per t u g e b l week over the previous twenty-four months and has at least e e , gh n d d i = = o h fifty percent of its digital audience in New Mexico, averaged l ] b ,d i a º r over a twelve-month period;

e r = t e w d m a n o (e) discloses in its print publication d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 31 - e a n e d r e l u [ A d HTRC/HB 14 or on its website its beneficial ownership or, in the case of a not-for-profit entity, its board of directors;

(f) in the case of an organization that demonstrates to the department that the organization has been granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501(c)(3) of the Internal Revenue Code, has declared the coverage of state or local news as the stated mission in its filings with the federal internal revenue service;

(g) has not received more than ten percent of its gross receipts for the previous year from political action committees or other entities described in Section 527 of the Internal Revenue Code, or from an organization that has been granted exemption from the federal income tax by the United States commissioner of internal h revenue as an organization described in Section 501(c)(4) or u » r t h 501(c)(6) of the Internal Revenue Code;

and g e l i (h) is not a publicly traded entity or h r i s is no more than forty-nine percent owned, directly or h , e h t u g indirectly, by a publicly traded entity or subsidiary." e b l e e , gh SECTION Sfl1º13.»Sfl1 Sfl1º6.»Sfl1 A new section of the n d d i = = o h Corporate Income and Franchise Tax Act is enacted to read:

l ] b ,d i a º r e r = "[NEW MATERIAL] LOCAL JOURNALIST EMPLOYMENT CORPORATE t e w d m a n o INCOME TAX CREDIT.-- d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 32 - e a n e d r e l u [ A d HTRC/HB 14 A.

For taxable years ending prior to January 1, 2030, a taxpayer that is a local news organization that employs a journalist may claim a credit against the taxpayer's tax liability imposed pursuant to the Corporate Income and Franchise Tax Act in an amount provided in Subsection B of this section.

The tax credit provided by this section may be referred to as the "local journalist employment corporate income tax credit".

B.

The amount of tax credit shall be in an amount equal to fifteen percent of compensation paid to each journalist employed by a local news organization.

C.

A taxpayer shall apply for certification of eligibility for the tax credit from the department on forms and in the manner prescribed by the department within one year following the end of the calendar year in which the compensation is paid.

A taxpayer shall not be eligible to h receive a tax credit for more than seventy-five journalists g o whom the taxpayer employs as a local news organization, and a t hr g e i k taxpayer shall not claim a tax credit for the same journalist h r i s more than once per taxable year.

h , t, D.

The total annual aggregate amount of local e u g e b l e e h journalist employment corporate income tax credits and local n d d i = = o h journalist employment income tax credits that may be certified l ] b ,d i a º e in a calendar year shall not exceed two million dollars r i = r t e w d m a n o ($2,000,000).

Completed applications shall be considered in d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 33 - e a n e d r e l u [ A d HTRC/HB 14 the order received, and applications received after the limitation has been met shall not be approved.

E.

If the department determines that the taxpayer meets the requirements of this section, the department shall issue a dated certificate of eligibility to the taxpayer providing the amount of tax credit for which the taxpayer is eligible and the taxable years in which the credit may be claimed.

F.

That portion of tax credit that exceeds a taxpayer's corporate income tax liability in the taxable year in which the credit is claimed shall be refunded to the taxpayer.

G.

A taxpayer allowed to claim a tax credit pursuant to this section shall claim the tax credit in a manner required by the department.

H.

The tax credit provided by this section shall be h included in the tax expenditure budget pursuant to Section u » r t h 7-1-84 NMSA 1978, including the annual aggregate cost of the g e l i tax credit.

h r i s I.

As used in this section:

h , e h t u g (1) "compensation" means not more than fifty e b l e e , gh thousand dollars ($50,000) in compensation paid by a local news n d d i = = o h organization to a journalist through the organization's payroll l ] b ,d i a º r e r = system, including that compensation that the journalist elects t e w d m a n o to defer or redirect or the journalist's contribution to a d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 34 - e a n e d r e l u [ A d HTRC/HB 14 401(k) or cafeteria plan program.

"Compensation" does not mean benefits or the organization's share of payroll taxes, social security or medicare contributions, federal or state unemployment insurance contributions or workers' compensation;

(2) "journalist" means a person who:

(a) is paid by a local news organization to regularly gather, prepare, collect, photograph, record, direct the recording of, produce, write, edit, report or publish news or information that concerns state or local events or other matters of public interest for dissemination to the state or a local community through reporting activities, including conducting interviews, observing current events or analyzing documents;

(b) resides within fifty miles of the coverage area assigned by the local news organization;

and (c) works as a journalist for the local h news organization for at least twenty-five percent of the g o taxable year in which the credit is claimed;

and t hr g e i k (3) "local news organization" means an entity h r i s that:

h , t, (a) provides a print or digital e u g e b l e e h publication that engages professionals who regularly gather, n d d i = = o h prepare, collect, photograph, record, direct the recording of, l ] b ,d i a º e produce, write, edit, report or publish news or information r i = r t e w d m a n o that concerns events in New Mexico or a local community in New d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 35 - e a n e d r e l u [ A d HTRC/HB 14 Mexico or other matters of public interest for dissemination to New Mexico or a local community in New Mexico through reporting activities, including conducting interviews, observing current events or analyzing documents;

(b) pays at least one individual, either through employment or by contract with the entity, as a journalist;

(c) in the case of print publications, has published at least one print publication per month over the previous twenty-four months and holds a valid United States postal service periodical permit or has at least thirty percent of its content dedicated to news concerning New Mexico or a local community in New Mexico;

(d) in the case of digital-only entities, has published at least four originally produced stories about New Mexico or a local community in New Mexico per h week over the previous twenty-four months and has at least u » r t h fifty percent of its digital audience in New Mexico, averaged g e l i over a twelve- month period;

h r i s (e) discloses in its print publication h , e h t u g or on its website its beneficial ownership or, in the case of a e b l e e , gh not-for-profit entity, its board of directors;

n d d i = = o h (f) in the case of an organization that l ] b ,d i a º r e r = demonstrates to the department that the organization has been t e w d m a n o granted exemption from the federal income tax by the United d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 36 - e a n e d r e l u [ A d HTRC/HB 14 States commissioner of internal revenue as organizations described in Section 501(c)(3) of the Internal Revenue Code, has declared the coverage of state or local news as the stated mission in its filings with the federal internal revenue service;

(g) has not received more than ten percent of its gross receipts for the previous year from political action committees or other entities described in Section 527 of the Internal Revenue Code, or from an organization that has been granted exemption from the federal income tax by the United States commissioner of internal revenue as an organization described in Section 501(c)(4) or 501(c)(6) of the Internal Revenue Code;

and (h) is not a publicly traded entity or is no more than forty-nine percent owned, directly or indirectly, by a publicly traded entity or subsidiary."»STBTC h STBTCºSECTION Sfl1º14.»Sfl1 Sfl1º7.»Sfl1 A new section u » r of the Income Tax Act is enacted to read:

t h g e "[NEW MATERIAL] LOCAL NEWS PRINTER INCOME TAX CREDIT.-- l i h r i s A.

For taxable years ending prior to January 1, h , e h 2030, a taxpayer who is not a dependent of another individual t u g e b l and is an owner of a local news printer that employs a e e , gh n d d i = = o h qualified employee may claim a credit against the taxpayer's l ] b ,d i a º r tax liability imposed pursuant to the Income Tax Act in an e r = t e w d m a n o amount provided in Subsection B of this section.

The tax d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 37 - e a n e d r e l u [ A d HTRC/HB 14 credit provided by this section may be referred to as the "local news printer income tax credit".

B.

The amount of tax credit shall be in an amount equal to the compensation paid to each qualified employee employed by a local news printer in the taxable year for which the tax credit is claimed, not to exceed:

(1) ten thousand dollars ($10,000) for a qualified employee working an average of twenty hours or more per week in the taxable year;

and (2) five thousand dollars ($5,000) for a qualified employee working an average of less than twenty hours per week in the taxable year.

C.

A taxpayer shall apply for certification of eligibility for the tax credit from the department on forms and in the manner prescribed by the department within one year following the end of the calendar year in which the h compensation is paid.

A taxpayer shall not be eligible to u » r t h receive a tax credit for more than one hundred qualified g e l i employees whom the taxpayer employs as a local news printer h r i s and, except as provided in Subsections G and H of this section, h , e h t u g only one tax credit shall be certified for each qualified e b l e e , gh employee employed by a local news printer per taxable year.

n d d i = = o h D.

The total annual aggregate amount of local news l ] b ,d i a º r e r = printer income tax credits and local news printer corporate t e w d m a n o income tax credits that may be certified in a calendar year d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 38 - e a n e d r e l u [ A d HTRC/HB 14 shall not exceed one million dollars ($1,000,000).

Completed applications shall be considered in the order received, and applications received after the limitation has been met shall not be approved.

E.

If the department determines that the taxpayer meets the requirements of this section, the department shall issue a dated certificate of eligibility to the taxpayer providing the amount of tax credit for which the taxpayer is eligible and the taxable years in which the credit may be claimed.

F.

That portion of tax credit that exceeds a taxpayer's income tax liability in the taxable year in which the credit is claimed shall be refunded to the taxpayer.

G.

Married individuals filing separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the tax credit that would have h been claimed on a joint return.

u » r H.

A taxpayer may be allocated the right to claim t h g e the tax credit in proportion to the taxpayer's ownership l i h r i s interest if the taxpayer owns an interest in a business entity h , e h that is taxed for federal income tax purposes as a partnership t u g e b l or limited liability company and the business entity has met e e , gh n d d i = = o h all requirements to be eligible for the credit.

The total l ] b ,d i a º r credit claimed by all members of the partnership or limited e r = t e w d m a n o liability company shall not exceed the allowable credit d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 39 - e a n e d r e l u [ A d HTRC/HB 14 pursuant to this section.

I.

A taxpayer allowed to claim a tax credit pursuant to this section shall claim the tax credit in a manner required by the department.

J.

The credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the credit.

K.

As used in this section:

(1) "compensation" means compensation paid by a local news printer to a qualified employee through the organization's payroll system, including that compensation that the qualified employee elects to defer or redirect or the qualified employee's contribution to a 401(k) or cafeteria plan program.

"Compensation" does not mean benefits or the organization's share of payroll taxes, social security or h g medicare contributions, federal or state unemployment insurance o t hr contributions or workers' compensation;

g e i k (2) "local news organization" means an entity h r i s h that:

, t, e u g (a) provides a print or digital e b l e e h publication that engages professionals who regularly gather, n d d i = = o h l ] b ,d prepare, collect, photograph, record, direct the recording of, i a º e r i = r produce, write, edit, report or publish news or information t e w d m a n o that concerns events in New Mexico or a local community in New d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 40 - e a n e d r e l u [ A d HTRC/HB 14 Mexico or other matters of public interest for dissemination to New Mexico or a local community in New Mexico through reporting activities, including conducting interviews, observing current events or analyzing documents;

(b) pays at least one individual, either through employment or by contract with the entity, as a qualified employee;

(c) in the case of print publications, has published at least one print publication per month over the previous thirty-six months and holds a valid United States postal service periodical permit or has at least thirty percent of its content dedicated to news concerning New Mexico or a local community in New Mexico;

(d) in the case of digital-only entities, has published at least five originally produced stories about New Mexico or a local community in New Mexico per h week over the previous thirty-six months and has at least fifty u » r percent of its digital audience in New Mexico, averaged over a t h g e twelve-month period;

l i h r i s (e) discloses in its print publication h , e h or on its website its beneficial ownership or, in the case of a t u g e b l not-for-profit entity, its board of directors;

e e , gh n d d i = = o h (f) in the case of an organization that l ] b ,d i a º r demonstrates to the department that the organization has been e r = t e w d m a n o granted exemption from the federal income tax by the United d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 41 - e a n e d r e l u [ A d HTRC/HB 14 States commissioner of internal revenue as organizations described in Section 501(c)(3) of the Internal Revenue Code, has declared the coverage of state or local news as the stated mission in its filings with the federal internal revenue service;

(g) has not received more than ten percent of its gross receipts for the previous year from political action committees or other entities described in Section 527 of the Internal Revenue Code, or from an organization that has been granted exemption from the federal income tax by the United States commissioner of internal revenue as an organization described in Section 501(c)(4) or 501(c)(6) of the Internal Revenue Code;

and (h) is not a publicly traded entity or is no more than forty-nine percent owned, directly or indirectly, by a publicly traded entity or subsidiary;

h (3) "local news printer" means an entity that:

u » r t h (a) provides manufacturing, production g e l i and printing services using a web press designed and optimized h r i s for printing newspapers for a local news organization;

h , e h t u g (b) has been engaging in the business of e b l e e , gh manufacturing, producing and printing newspapers for at least n d d i = = o h five years;

l ] b ,d i a º r e r = (c) employs at least five qualified t e w d m a n o employees;

and d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 42 - e a n e d r e l u [ A d HTRC/HB 14 (d) is not a publicly traded entity or is no more than forty-nine percent owned, directly or indirectly, by a publicly traded entity or subsidiary;

and (4) "qualified employee" means a person who:

(a) is paid by a local news printer to regularly perform duties related to pre-press, press and post- press newspaper production to prepare newspapers for transition to delivery and distribution personnel;

(b) works at a physical location in New Mexico;

and (c) works as a qualified employee for the local news printer for at least twenty-five percent of the taxable year in which the credit is claimed." SECTION Sfl1º15.»Sfl1 Sfl1º8.»Sfl1 A new section of the Corporate Income and Franchise Tax Act is enacted to read:

"[NEW MATERIAL] LOCAL NEWS PRINTER CORPORATE INCOME TAX h CREDIT.-- g o A.

For taxable years ending prior to January 1, t hr g e i k 2030, a taxpayer that is an owner of a local news printer that h r i s employs a qualified employee may claim a credit against the h , t, taxpayer's tax liability imposed pursuant to the Corporate e u g e b l e e h Income and Franchise Tax Act in an amount provided in n d d i = = o h Subsection B of this section.

The tax credit provided by this l ] b ,d i a º e section may be referred to as the "local news printer corporate r i = r t e w d m a n o income tax credit".

d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 43 - e a n e d r e l u [ A d HTRC/HB 14 B.

The amount of tax credit shall be in an amount equal to the compensation paid to each qualified employee employed by a local news printer in the taxable year for which the tax credit is claimed, not to exceed:

(1) ten thousand dollars ($10,000) for a qualified employee working an average of twenty hours or more per week in the taxable year;

and (2) five thousand dollars ($5,000) for a qualified employee working an average of less than twenty hours per week in the taxable year.

C.

A taxpayer shall apply for certification of eligibility for the tax credit from the department on forms and in the manner prescribed by the department within one year following the end of the calendar year in which the compensation is paid.

A taxpayer shall not be eligible to receive a tax credit for more than one hundred qualified h g employees whom the taxpayer employs as a local news printer and o t hr only one tax credit shall be certified for each qualified g e i k employee employed by a local news printer per taxable year.

h r i s h D.

The total annual aggregate amount of local news , t, e u g printer corporate income tax credits and local news printer e b l e e h income tax credits that may be certified in a calendar year n d d i = = o h l ] b ,d shall not exceed one million dollars ($1,000,000).

Completed i a º e r i = r applications shall be considered in the order received, and t e w d m a n o applications received after the limitation has been met shall d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 44 - e a n e d r e l u [ A d HTRC/HB 14 not be approved.

E.

If the department determines that the taxpayer meets the requirements of this section, the department shall issue a dated certificate of eligibility to the taxpayer providing the amount of tax credit for which the taxpayer is eligible and the taxable years in which the credit may be claimed.

F.

That portion of tax credit that exceeds a taxpayer's income tax liability in the taxable year in which the credit is claimed shall be refunded to the taxpayer.

G.

A taxpayer allowed to claim a tax credit pursuant to this section shall claim the tax credit in a manner required by the department.

H.

The credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the h credit.

g o I.

As used in this section:

t hr g e i k (1) "compensation" means compensation paid by h r i s a local news printer to a qualified employee through the h , t, organization's payroll system, including that compensation that e u g e b l e e h the qualified employee elects to defer or redirect or the n d d i = = o h qualified employee's contribution to a 401(k) or cafeteria plan l ] b ,d i a º e program.

"Compensation" does not mean benefits or the r i = r t e w d m a n o organization's share of payroll taxes, social security or d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 45 - e a n e d r e l u [ A d HTRC/HB 14 medicare contributions, federal or state unemployment insurance contributions or workers' compensation;

(2) "local news organization" means an entity that:

(a) provides a print or digital publication that engages professionals who regularly gather, prepare, collect, photograph, record, direct the recording of, produce, write, edit, report or publish news or information that concerns events in New Mexico or a local community in New Mexico or other matters of public interest for dissemination to New Mexico or a local community in New Mexico through reporting activities, including conducting interviews, observing current events or analyzing documents;

(b) pays at least one individual, either through employment or by contract with the entity, as a qualified employee;

h (c) in the case of print publications, u » r t h has published at least one print publication per month over the g e l i previous thirty-six months and holds a valid United States h r i s postal service periodical permit or has at least thirty percent h , e h t u g of its content dedicated to news concerning New Mexico or a e b l e e , gh local community in New Mexico;

n d d i = = o h (d) in the case of digital-only l ] b ,d i a º r e r = entities, has published at least five originally produced t e w d m a n o stories about New Mexico or a local community in New Mexico per d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 46 - e a n e d r e l u [ A d HTRC/HB 14 week over the previous thirty-six months and has at least fifty percent of its digital audience in New Mexico, averaged over a twelve- month period;

(e) discloses in its print publication or on its website its beneficial ownership or, in the case of a not-for-profit entity, its board of directors;

(f) in the case of an organization that demonstrates to the department that the organization has been granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501(c)(3) of the Internal Revenue Code, has declared the coverage of state or local news as the stated mission in its filings with the federal internal revenue service;

(g) has not received more than ten percent of its gross receipts for the previous year from h political action committees or other entities described in u » r Section 527 of the Internal Revenue Code, or from an t h g e organization that has been granted exemption from the federal l i h r i s income tax by the United States commissioner of internal h , e h revenue as an organization described in Section 501(c)(4) or t u g e b l 501(c)(6) of the Internal Revenue Code;

and e e , gh n d d i = = o h (h) is not a publicly traded entity or l ] b ,d i a º r is no more than forty-nine percent owned, directly or e r = t e w d m a n o indirectly, by a publicly traded entity or subsidiary;

d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 47 - e a n e d r e l u [ A d HTRC/HB 14 (3) "local news printer" means an entity that:

(a) provides manufacturing, production and printing services using a web press designed and optimized for printing newspapers for a local news organization;

(b) has been engaging in the business of manufacturing, producing and printing newspapers for at least five years;

(c) employs at least five qualified employees;

and (d) is not a publicly traded entity or is no more than forty-nine percent owned, directly or indirectly, by a publicly traded entity or subsidiary;

and (4) "qualified employee" means a person who:

(a) is paid by a local news printer to regularly perform duties related to pre-press, press and post- press newspaper production to prepare newspapers for transition h g to delivery and distribution personnel;

o t hr (b) works at a physical location in New g e i k Mexico;

and h r i s h (c) works as a qualified employee for , t, e u g the local news printer for at least twenty-five percent of the e b l e e h taxable year in which the credit is claimed."»STBTC»CC n d d i = = o h l ] b ,d CCºSTBTCºSECTION Sfl1º16.»Sfl1 Sfl1º9.»Sfl1 A new i a º e r i = r section of the Income Tax Act is enacted to read:

t e w d m a n o "[NEW MATERIAL] CREDIT--FOSTER PARENT AND GUARDIAN INCOME d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 48 - e a n e d r e l u [ A d HTRC/HB 14 TAX CREDIT.-- A.

For taxable years ending prior to January 1, 2030, a taxpayer who is a resident, who is not a dependent of another individual and who is a foster parent or a guardian of a child may claim a credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act.

h C.

A taxpayer shall apply for certification of u » r eligibility for the tax credit from the children, youth and t h g e families department on forms and in the manner prescribed by l i h r i s that department.

Except as provided in Subsection E of this h , e h section, only one tax credit shall be certified per taxpayer t u g e b l per taxable year.

If the children, youth and families e e , gh n d d i = = o h department determines that the taxpayer meets the requirements l ] b ,d i a º r of this section, that department shall issue a datedHTRC/HB e14/a rPage =6 tdated ecertificate wof deligibility mto athe ntaxpayer oproviding certificatethe amount of eligibilitytax tocredit for which the taxpayer providingis eligible and the amounttaxable dyears min :which the credit may be claimed.

bThe rchildren, eyouth tand ºfamilies odepartment tshall nprovide =the .231874.4AICdepartment Marchwith 22,the 2025certificates (10:06am) s k m e - 49 - e a n e d r e l u [ A d HTRC/HB 14 of taxeligibility creditissued forpursuant whichto thethis taxpayersubsection is eligible and the taxable years in whichan theelectronic creditformat mayat beregularly claimed.agreed-upon intervals.

The children, youth and families department shall provide the department with the certificates of eligibility issued pursuant to this subsection in an electronic format at regularly agreed upon intervals.

The credit shall be claimed within h g one taxable year of the end of the year in which the children, o t hr youth and families department certifies the credit.

g e i k G.

The credit provided by this section shall be h r i s h included in the tax expenditure budget pursuant to Section , t, e u g 7-1-84 NMSA 1978, including the annual aggregate cost of the e b l e e h credit.

n d d i = = o h l ] b ,d H.

As used in this section:

i a º e r i = r (1) "child" means an unemancipated individual t e w d m a n o who has not reached eighteen years of age;

d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 50 - e a n e d r e l u [ A d HTRC/HB 14 (2) "foster parent" means a person licensed or certified by the children, youth and families department or a child placement agency to provide care for children in the custody of the department or agency;

and (3) "guardian" means a person appointed as a guardian by a court or an Indian tribal authority pursuant to the Kinship Guardianship Act, but does not include a person appointed as a guardian ad litem."»STBTC»CC CCº STBTCºSECTION Sfl1º17.»Sfl1 Sfl1º10.»Sfl1 A new section of the Income Tax Act is enacted to read:

"[NEW MATERIAL] QUANTUM FACILITY INFRASTRUCTURE INCOME TAX CREDIT.-- A.

For taxable years beginning on or after January 1, 2026 and ending prior to January 1, 2031, a taxpayer who is not a dependent of another individual and who makes at least three million dollars ($3,000,000) in qualified expenditures h for infrastructure for a quantum facility located in New Mexico g o may claim a credit against the taxpayer's tax liability imposed t hr g e i k pursuant to the Income Tax Act in the amount provided in h r i s Subsection B of this section.

The credit provided by this h , t, section may be referred to as the "quantum facility e u g e b l e e h infrastructure income tax credit".

n d d i = = o h B.

Subject to the total aggregate amount allowed l ] b ,d i a º e pursuant to Subsection D of this section, the amount of credit r i = r t e w d m a n o shall be in an amount equal to fifteen percent of the amount of d m :

b e d s º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 51 - e a n e d r e l u [ A d HTRC/HB 14 the qualified expenditures made by the taxpayer for infrastructure for a quantum facility, not to exceed ten million dollars ($10,000,000) per quantum facility.

C.

Prior to incurring a qualified expenditure, a taxpayer shall apply for preliminary certification of eligibility for the credit from the economic development department on forms and in the manner prescribed by that department.

Such preliminary certification shall be limited to confirming that the qualified expenditures proposed to be made by the taxpayer will in whole or in part be used to provide infrastructure for a quantum facility and providing an estimate of the amount of credit for which the taxpayer may be eligible.

Only one certificate of eligibility shall be issued for a quantum facility, regardless of ownership of the facility.

D.

Within twelve months of completion of construction of a quantum facility, the taxpayer shall seek h final certification from the economic development department.

u » r t h The total annual aggregate amount of quantum facility g e l i infrastructure income tax credits and quantum facility h r i s infrastructure corporate income tax credits that may be h , e h t u g certified in any calendar year shall not exceed fifteen million e b l e e , gh dollars ($15,000,000).

Completed applications shall be n d d i = = o h considered in the order received, and applications received l ] b ,d i a º r e r = after the limitation has been met shall not be approved.

An t e w d m a n o application for final certification shall include information d m :

b r e t º o t n = .231874.4AIC March 22, 2025 (10:06am) s k m e - 52 - e a n e d r e l u [ A d HTRC/HB 14 required by the economic development department to determine eligibility for the credit, including information substantiating qualified expenditures.

If that department determines that the taxpayer meets the requirements of this section, that department shall issue a dated certificate of eligibility to the taxpayer providing the amount of credit for which the taxpayer is eligible and the taxable years in which the credit may be claimed.

The economic development department shall provide the department with the certificates of eligibility issued pursuant to this subsection in secure electronic format at regularly agreed-upon intervals.

E.

A taxpayer allowed to claim the credit shall claim the credit in a manner required by the department.

The credit shall be claimed within one year of receiving final certification from the economic development department.