New Mexico 2025 Regular Session Status: Enacted Bipartisan · 1 D · 1 R cosponsors

HB 368 — HIGH WAGE JOBS TAX CREDIT "THRESHOLD JOB"

Last action — Signed

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 11, 2025. Enacted.

Signed by Governor Michelle Lujan Grisham (Democratic) on April 09, 2025.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 70% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 2 sponsors

    2 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (1 D · 1 R) — cross-party backing.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

352 added · 424 removed

Plain-language change summary

The recent amendments to House Bill 368 revised the language pertaining to the high-wage jobs tax credit, particularly clarifying what constitutes a "threshold job." This change aims to streamline the process for businesses to qualify for tax benefits, encouraging both urban and rural employers to create higher-paying positions in New Mexico. By making it easier for businesses to understand and access the credit, the hope is that more high-wage jobs will be added to the local economy, benefiting workers and the community overall.

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HOUSE BILL 368 57TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2025 INTRODUCED BY Joshua N.
AN ACT RELATING TO THE HIGH-WAGE JOBS TAX CREDIT;
Hernandez and Meredith A.
Dixon 6 8 10 AN ACT RELATING TO THE HIGH-WAGE JOBS TAX CREDIT;
14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
e t 17 "7-9G-1.
"7-9G-1.
HIGH-WAGE JOBS TAX CREDIT--QUALIFYING HIGH-WAGE w l n d 18 JOBS.-- = = 19 a l A.
HIGH-WAGE JOBS TAX CREDIT--QUALIFYING HIGH- WAGE JOBS.-- A.
A taxpayer that is an eligible employer may i a e r 20 apply for, and the department may allow, a tax credit for each a t m m 21 new high-wage job.
A taxpayer that is an eligible employer may apply for, and the department may allow, a tax credit for each new high-wage job.
The credit provided in this section may be d r e 22 referred to as the "high-wage jobs tax credit".
The credit provided in this section may be referred to as the "high-wage jobs tax credit".
c e s k 23 B.
B.
The purpose of the high-wage jobs tax credit is e a n b 24 to provide an incentive for urban and rural businesses to u [ create and fill new high-wage jobs in New Mexico.
The purpose of the high-wage jobs tax credit is to provide an incentive for urban and rural businesses to create and fill new high-wage jobs in New Mexico.
.230496.1 C.
C.
The high-wage jobs tax credit may be claimed by an eligible employer for each new high-wage job performed for the year in which the new high- wage job is created and for consecutive qualifying periods.
The high-wage jobs tax credit may be claimed by an eligible employer for each new high-wage job performed for the year in which the new high-wage job is created and for consecutive qualifying periods.
D.
HB 368 Page 1 D.
Any qualifying period that did not close in the calendar e t 17 year for which the application is made shall be denied by the w l n d 18 department.
Any qualifying period that did not close in the calendar year for which the application is made shall be denied by the department.
The application for a calendar year shall be filed = = 19 a l no later than December 31 of the following calendar year.
The application for a calendar year shall be filed no later than December 31 of the following calendar year.
If a i a e r 20 taxpayer fails to file the annual application within the time a t m m 21 limits provided in this section, the application shall be d r e 22 denied by the department.
If a taxpayer fails to file the annual application within the time limits provided in this section, the application shall be denied by the department.
The department shall make a c e s k 23 determination on the application within one hundred eighty days e a n b 24 of the date on which the application was filed.
The department shall make a determination on the application within one hundred eighty days of the date on which the application was filed.
u [ E.
E.
A new high-wage job shall not be eligible for a .230496.1 - 2 - credit pursuant to this section for the initial qualifying period unless the eligible employer's total number of employees with threshold jobs on the last day of the initial qualifying period at the location at which the job is performed or based is at least one more than the number of threshold jobs on the day prior to the date the new high-wage job was created.
A new high-wage job shall not be eligible for a credit pursuant to this section for the initial qualifying period unless the eligible employer's total number of employees with threshold jobs on the last day of the initial qualifying period at the location at which the job is performed or based is at least one more than the number of threshold jobs on the day prior to the date the new high-wage job was created.
A new high-wage job shall not be eligible for a credit pursuant to this section for a consecutive qualifying period unless the total number of threshold jobs at a location at which the job is performed or based on the last day of that qualifying period is greater than or equal to the number of threshold jobs at that same location on the last day of the initial qualifying period for the new high-wage job.
A new high-wage job shall not be eligible HB 368 Page 2 for a credit pursuant to this section for a consecutive qualifying period unless the total number of threshold jobs at a location at which the job is performed or based on the last day of that qualifying period is greater than or equal to the number of threshold jobs at that same location on the last day of the initial qualifying period for the new high- wage job.
e t 17 G.
G.
Except as provided in Subsection H of this w l n d 18 section, a new high-wage job shall not be eligible for a credit = = 19 a l pursuant to this section if:
Except as provided in Subsection H of this section, a new high-wage job shall not be eligible for a credit pursuant to this section if:
i a e r 20 (1) the new high-wage job is created due to a a t m m 21 business merger or acquisition or other change in business d r e 22 organization;
(1) the new high-wage job is created due to a business merger or acquisition or other change in business organization;
c e s k 23 (2) the eligible employee was terminated from e a n b 24 employment in New Mexico by another employer involved in the u [ business merger or acquisition or other change in business .230496.1 - 3 - organization with the taxpayer;
(2) the eligible employee was terminated from employment in New Mexico by another employer involved in the business merger or acquisition or other change in business organization with the taxpayer;
or (b) a person replacing the person who performed the job or its functional equivalent prior to a business merger or acquisition or other change in business organization.
or (b) a person replacing the person who HB 368 Page 3 performed the job or its functional equivalent prior to a business merger or acquisition or other change in business organization.
The new employer that results e t 17 from a business merger or acquisition or other change in w l n d 18 business organization may only claim the high-wage jobs tax = = 19 a l credit for the balance of the consecutive qualifying periods i a e r 20 for which the new high-wage job is otherwise eligible.
The new employer that results from a business merger or acquisition or other change in business organization may only claim the high-wage jobs tax credit for the balance of the consecutive qualifying periods for which the new high-wage job is otherwise eligible.
a t m m 21 I.
I.
A new high-wage job shall not be eligible for a d r e 22 credit pursuant to this section if the job is created due to an c e s k 23 eligible employer entering into a contract or becoming a e a n b 24 subcontractor to a contract with a governmental entity that u [ replaces one or more entities performing functionally .230496.1 - 4 - equivalent services for the governmental entity unless the job is a new high-wage job that was not being performed by an employee of the replaced entity.
A new high-wage job shall not be eligible for a credit pursuant to this section if the job is created due to an eligible employer entering into a contract or becoming a subcontractor to a contract with a governmental entity that replaces one or more entities performing functionally equivalent services for the governmental entity unless the job is a new high-wage job that was not being performed by an employee of the replaced entity.
A new high-wage job shall not be eligible for a credit pursuant to this section if the eligible employer has more than one business location in New Mexico from which it conducts business and the requirements of Subsection E of this section are satisfied solely by moving the job from one business location of the eligible employer in New Mexico to another business location of the eligible employer in New Mexico.
A new high-wage job shall not be eligible for a credit pursuant to this section if the eligible employer has HB 368 Page 4 more than one business location in New Mexico from which it conducts business and the requirements of Subsection E of this section are satisfied solely by moving the job from one business location of the eligible employer in New Mexico to another business location of the eligible employer in New Mexico.
e t 17 (2) the number of weeks each position was w l n d 18 occupied during the qualifying period;
(2) the number of weeks each position was occupied during the qualifying period;
= = 19 a l (3) whether the new high-wage job was in a i a e r 20 municipality with a population of sixty thousand or more or a t m m 21 with a population of less than sixty thousand according to the d r e 22 most recent federal decennial census and whether the job was in c e s k 23 the unincorporated area of a county;
(3) whether the new high-wage job was in a municipality with a population of sixty thousand or more or with a population of less than sixty thousand according to the most recent federal decennial census and whether the job was in the unincorporated area of a county;
e a n b 24 (4) which qualifying period the application u [ pertains to for each eligible employee;
(4) which qualifying period the application pertains to for each eligible employee;
.230496.1 - 5 - (5) the total number of employees employed by the employer at the job location on the day prior to the qualifying period and on the last day of the qualifying period;
(5) the total number of employees employed by the employer at the job location on the day prior to the qualifying period and on the last day of the qualifying period;
(6) the total number of threshold jobs performed or based at the eligible employer's location on the day prior to the qualifying period and on the last day of the qualifying period;
HB 368 Page 5 (6) the total number of threshold jobs performed or based at the eligible employer's location on the day prior to the qualifying period and on the last day of the qualifying period;
e t 17 (9) whether the eligible employer has ceased w l n d 18 business operations at any of its business locations in New = = 19 a l Mexico;
(9) whether the eligible employer has ceased business operations at any of its business locations in New Mexico;
and i a e r 20 (10) whether the application is precluded by a t m m 21 Subsection O of this section.
and (10) whether the application is precluded by Subsection O of this section.
d r e 22 L.
L.
Any person who willfully submits a false, c e s k 23 incorrect or fraudulent certification required pursuant to e a n b 24 Subsection K of this section shall be subject to all applicable u [ penalties under the Tax Administration Act, except that the .230496.1 - 6 - amount on which the penalty is based shall be the total amount of credit requested on the application for approval.
Any person who willfully submits a false, incorrect or fraudulent certification required pursuant to Subsection K of this section shall be subject to all applicable penalties under the Tax Administration Act, except that the amount on which the penalty is based shall be the total amount of credit requested on the application for approval.
M.
HB 368 Page 6 M.
If the taxpayer ceases business operations in New Mexico while an application for credit approval is pending or after an application for credit has been approved for any qualifying period for a new high-wage job, the department shall not grant an additional high-wage jobs tax credit to that taxpayer except as provided in Subsection O of this section and shall extinguish any amount of credit approved for that e t 17 taxpayer that has not already been claimed against the w l n d 18 taxpayer's modified combined tax liability.
If the taxpayer ceases business operations in New Mexico while an application for credit approval is pending or after an application for credit has been approved for any qualifying period for a new high-wage job, the department shall not grant an additional high-wage jobs tax credit to that taxpayer except as provided in Subsection O of this section and shall extinguish any amount of credit approved for that taxpayer that has not already been claimed against the taxpayer's modified combined tax liability.
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= = 19 a l O.
O.
A taxpayer that has received a high-wage jobs i a e r 20 tax credit shall not submit a new application for the credit a t m m 21 for a minimum of two calendar years from the closing date of d r e 22 the last qualifying period for which the taxpayer received the c e s k 23 credit if the taxpayer lost eligibility to claim the credit e a n b 24 from a previous application pursuant to Subsection N of this u [ section.
A taxpayer that has received a high-wage jobs tax credit shall not submit a new application for the credit for a minimum of two calendar years from the closing date of the last qualifying period for which the taxpayer received the credit if the taxpayer lost eligibility to claim the credit from a previous application pursuant to Subsection N of this section.
.230496.1 - 7 - P.
P.
The economic development department and the taxation and revenue department shall report to the appropriate interim legislative committee each year the cost of the high- wage jobs tax credit to the state and its impact on company recruitment and job creation.
The economic development department and the taxation and revenue department shall report to the HB 368 Page 7 appropriate interim legislative committee each year the cost of the high-wage jobs tax credit to the state and its impact on company recruitment and job creation.
(1) "benefits" means all remuneration for work performed that is provided to an employee in whole or in part by the employer, other than wages, including the employer's contributions to insurance programs, health care, medical, dental and vision plans, life insurance, employer contributions to pensions, such as a 401(k), and employer-provided services, such as child care, offered by an employer to the employee;
(1) "benefits" means all remuneration for work performed that is provided to an employee in whole or in part by the employer, other than wages, including the employer's contributions to insurance programs, health care, medical, dental and vision plans, life insurance, employer contributions to pensions, such as a 401(k), and employer- provided services, such as child care, offered by an employer to the employee;
e t 17 (3) "department" means the taxation and w l n d 18 revenue department;
(3) "department" means the taxation and revenue department;
= = 19 a l (4) "dependent" means "dependent" as defined i a e r 20 in 26 U.S.C.
(4) "dependent" means "dependent" as defined in 26 U.S.C.
152(a), as that section may be amended or a t m m 21 renumbered;
152(a), as that section may be amended or renumbered;
d r e 22 (5) "domicile" means the sole place where an c e s k 23 individual has a true, fixed, permanent home.
(5) "domicile" means the sole place where an individual has a true, fixed, permanent home.
It is the place e a n b 24 where the individual has a voluntary, fixed habitation of self u [ and family with the intention of making a permanent home;
It is the place where the individual has a voluntary, fixed habitation of self and family with the intention of making a permanent HB 368 Page 8 home;
.230496.1 - 8 - (6) "eligible employee" means an individual who is employed in New Mexico by an eligible employer and who is a resident of New Mexico;
(6) "eligible employee" means an individual who is employed in New Mexico by an eligible employer and who is a resident of New Mexico;
or (d) if the employer is an entity other than a corporation, estate or trust, is a dependent of an individual who owns, directly or indirectly, more than fifty e t 17 percent of the capital and profits interests in the entity;
or (d) if the employer is an entity other than a corporation, estate or trust, is a dependent of an individual who owns, directly or indirectly, more than fifty percent of the capital and profits interests in the entity;
w l n d 18 (7) "eligible employer" means an employer = = 19 a l that, during the applicable qualifying period, would be i a e r 20 eligible for development training program assistance under the a t m m 21 fiscal year 2019 policies defining development training program d r e 22 eligibility developed by the industrial training board in c e s k 23 accordance with Section 21-19-7 NMSA 1978;
(7) "eligible employer" means an employer that, during the applicable qualifying period, would be eligible for development training program assistance under the fiscal year 2019 policies defining development training program eligibility developed by the industrial training board in accordance with Section 21-19-7 NMSA 1978;
e a n b 24 (8) "modified combined tax liability" means u [ the total liability for the reporting period for the gross .230496.1 - 9 - receipts tax imposed by Section 7-9-4 NMSA 1978 together with any tax collected at the same time and in the same manner as the gross receipts tax, such as the compensating tax, the withholding tax, the interstate telecommunications gross receipts tax, the surcharges imposed by Section 63-9D-5 NMSA 1978 and the surcharge imposed by Section 63-9F-11 NMSA 1978, minus the amount of any credit other than the high-wage jobs tax credit applied against any or all of these taxes or surcharges;
(8) "modified combined tax liability" means HB 368 Page 9 the total liability for the reporting period for the gross receipts tax imposed by Section 7-9-4 NMSA 1978 together with any tax collected at the same time and in the same manner as the gross receipts tax, such as the compensating tax, the withholding tax, the interstate telecommunications gross receipts tax, the surcharges imposed by Section 63-9D-5 NMSA 1978 and the surcharge imposed by Section 63-9F-11 NMSA 1978, minus the amount of any credit other than the high-wage jobs tax credit applied against any or all of these taxes or surcharges;
(9) "new high-wage job" means a new job created in New Mexico by an eligible employer on or after July 1, 2004 and prior to July 1, 2026 that is occupied for at least forty-four weeks of a qualifying period by an eligible employee who is paid wages calculated for the qualifying period to be at e t 17 least:
(9) "new high-wage job" means a new job created in New Mexico by an eligible employer on or after July 1, 2004 and prior to July 1, 2026 that is occupied for at least forty-four weeks of a qualifying period by an eligible employee who is paid wages calculated for the qualifying period to be at least:
w l n d 18 (a) for a new high-wage job created = = 19 a l prior to July 1, 2015:
(a) for a new high-wage job created prior to July 1, 2015:
1) forty thousand dollars ($40,000) if i a e r 20 the job is performed or based in or within ten miles of the a t m m 21 external boundaries of a municipality with a population of d r e 22 sixty thousand or more according to the most recent federal c e s k 23 decennial census or in a class H county;
1) forty thousand dollars ($40,000) if the job is performed or based in or within ten miles of the external boundaries of a municipality with a population of sixty thousand or more according to the most recent federal decennial census or in a class H county;
and 2) twenty-eight e a n b 24 thousand dollars ($28,000) if the job is performed or based in u [ a municipality with a population of less than sixty thousand .230496.1 - 10 - according to the most recent federal decennial census or in the unincorporated area, that is not within ten miles of the external boundaries of a municipality with a population of sixty thousand or more, of a county other than a class H county;
and 2) twenty-eight thousand dollars ($28,000) if the job is HB 368 Page 10 performed or based in a municipality with a population of less than sixty thousand according to the most recent federal decennial census or in the unincorporated area, that is not within ten miles of the external boundaries of a municipality with a population of sixty thousand or more, of a county other than a class H county;
and 2) forty thousand dollars ($40,000) if the job is performed or based in a municipality with a population of less than sixty thousand according to the most recent federal decennial census or in the unincorporated area, that is not within ten miles of the external boundaries of a municipality with a population of e t 17 sixty thousand or more, of a county other than a class H w l n d 18 county;
and 2) forty thousand dollars ($40,000) if the job is performed or based in a municipality with a population of less than sixty thousand according to the most recent federal decennial census or in the unincorporated area, that is not within ten miles of the external boundaries of a municipality with a population of sixty thousand or more, of a county other than a class H county;
= = 19 a l (10) "new job" means a job that is occupied by i a e r 20 an employee who has not been employed in New Mexico by the a t m m 21 eligible employer in the three years prior to the date of hire;
(10) "new job" means a job that is occupied by an employee who has not been employed in New Mexico by the eligible employer in the three years prior to the date of hire;
d r e 22 (11) "qualifying period" means the period of c e s k 23 twelve months beginning on the day an eligible employee begins e a n b 24 working in a new high-wage job or the period of twelve months u [ beginning on the anniversary of the day an eligible employee .230496.1 - 11 - began working in a new high-wage job;
(11) "qualifying period" means the period of twelve months beginning on the day an eligible employee HB 368 Page 11 begins working in a new high-wage job or the period of twelve months beginning on the anniversary of the day an eligible employee began working in a new high-wage job;
(a) is occupied for at least forty-four weeks of [a calendar year] the first fifty-two weeks of employment by an eligible employee;
(a) is occupied for at least forty-four weeks of the first fifty-two weeks of employment by an eligible employee;
provided that the fifty- two-week period begins on the day the eligible employee occupies the job;
provided that the fifty-two-week period begins on the day the eligible employee occupies the job;
and [that] (b) meets the wage requirements for a "new high-wage job";
and (b) meets the wage requirements for a "new high-wage job";
and (14) "wages" means all compensation paid by an eligible employer to an eligible employee through the employer's payroll system, including those wages that the employee elects to defer or redirect or the employee's e t 17 contribution to a 401(k) or cafeteria plan program, but "wages" w l n d 18 does not include benefits or the employer's share of payroll = = 19 a l taxes, social security or medicare contributions, federal or i a e r 20 state unemployment insurance contributions or workers' a t m m 21 compensation." d r e 22 SECTION 2.
and (14) "wages" means all compensation paid by an eligible employer to an eligible employee through the employer's payroll system, including those wages that the employee elects to defer or redirect or the employee's contribution to a 401(k) or cafeteria plan program, but "wages" does not include benefits or the employer's share of payroll taxes, social security or medicare contributions, federal or state unemployment insurance contributions or workers' compensation." SECTION 2.
APPLICABILITY.--The provisions of this act c e s k 23 apply to applications for a high-wage jobs tax credit received e a n b 24 by the taxation and revenue department on or after the u [ effective date of this act.
APPLICABILITY.--The provisions of this act apply to applications for a high-wage jobs tax credit received by the taxation and revenue department on or after the HB 368 Page 12 effective date of this act.
.230496.1 - 12 -
HB 368 Page 13 3 5 7 9 25
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Action History

  1. Signed

  2. passed Senate

  3. DO PASS committee report adopted

  4. Sent to Senate Tax, Business and Transportation Committee

  5. passed House

  6. DO PASS committee report adopted

  7. DO PASS committee report adopted

  8. Sent to House Commerce & Economic Development Committee & House Taxation & Revenue Committee

Sponsors

Sponsorship breakdown

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2 sponsors · 0 co-sponsors · 110 not signed on

Sponsors (2)

Co-sponsors (0)

None.

Not signed on (110)

110 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors HB 368?
HB 368 is sponsored by Meredith A. Dixon (Democrat) and Joshua N. Hernandez (Republican).
What is the current status of HB 368?
This bill has been enacted into law. Introduced February 11, 2025. Enacted.
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