SB 151 — CORPORATE INCOME TAX CHANGES

and l ] b ,d i a e (b) the amount of net operating loss r i = r t e w d deductions taken prior to January 1, 2020 that would be charged magainst athose nlosses oconsistent dwith mthe :Internal Revenue Code and provisions of the Corporate Income and Franchise Tax Act applicable to the year of the deduction;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -7- e a n e d r e l u [ A d SFC/STBTC/SB 151 against those losses consistent with the Internal Revenue Code and provisions of the Corporate Income and Franchise Tax Act applicable to the year of the deduction;

or (2) the combined base income and losses of corporations that are part of a filing group that is computed after eliminating intercompany income and expense in a manner consistent with the consolidated filing requirements of the Internal Revenue Code and the Corporate Income and Franchise h Tax Act;

g o N.

"net operating loss carryover" means the t hr h te apportioned net loss properly reported on an original or i k h r i s amended tax return for taxable years beginning on or after h , t, January 1, 2020 by the taxpayer:

eSFC/STBTC/SB u151 gPage e7 b l (1) plus:

e e h n d d ig = = o h (a) the portion of an apportioned net l ] b ,d i a e loss properly reported to New Mexico for a taxable year r i = r t e w d beginning on or after January 1, 2020, on a separate year mreturn, ato nthe oextent dthe mtaxpayer :would have been entitled to include the portion of such apportioned net loss in the taxpayer's consolidated net operating loss carryforward under the Internal Revenue Code if the taxpayer filed a consolidated federal return;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -8- e a n e d r e l u [ A d SFC/STBTC/SB 151 return, to the extent the taxpayer would have been entitled to include the portion of such apportioned net loss in the taxpayer's consolidated net operating loss carryforward under the Internal Revenue Code if the taxpayer filed a consolidated federal return;

h O.

"net operating loss deduction" means the portion g o of the net operating loss carryover that may be deducted from t hr h te the taxpayer's apportioned net income under the Internal i k h r i s Revenue Code as of January 1, 2018 for the taxable year in h , t, which the deduction is taken, including the eighty percentSFC/STBTC/SB e151 uPage g8 epercent b l limitation of Section 172(a) of the Internal Revenue Code as of e e h n d d ig = = o h January 1, 2018 calculated on the basis of the taxpayer's l ] b ,d i a e apportioned net income;

r i = r t e w d P.

"person" means any individual, estate, trust, mreceiver, acooperative nassociation, oclub, dcorporation, mcompany, :firm, partnership, limited liability company, joint venture, syndicate or other association;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -9- e a n e d r e l u [ A d SFC/STBTC/SB 151 receiver, cooperative association, club, corporation, company, firm, partnership, limited liability company, joint venture, syndicate or other association;

"return" means any tax or information return, including a water's-edge or worldwide combined return, a consolidated return, a declaration of estimated tax or a claim for refund, including any amendments or supplements to the h return, required or permitted pursuant to a law subject to g o administration and enforcement pursuant to the Tax t hr h te Administration Act and filed with the department by or on i k h r i s behalf of any person;

h , t, T.

"secretary" means the secretary of taxation and eSFC/STBTC/SB u151 gPage e9 b l revenue or the secretary's delegate;

e e h n d d ig = = o h U.

"separate year return" means a properly filed l ] b ,d i a e original or amended return for a taxable year beginning on or r i = r t e w d after January 1, 2020 by a taxpayer reporting a loss, a portion mof awhich nis oclaimed das mpart :of the net operating loss carryover by another taxpayer in a subsequent return period;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -10- e a n e d r e l u [ A d SFC/STBTC/SB 151 of which is claimed as part of the net operating loss carryover by another taxpayer in a subsequent return period;

h Y.

"taxable year" means the calendar year or fiscal g o year upon the basis of which the net income is computed under t hr h te the Corporate Income and Franchise Tax Act and includes, in the i k h r i s case of the return made for a fractional part of a year under h , t, the provisions of that act, the period SFC/STBTC/SB 151 Page 10 for which the return is e u g e b l made;

e e h n d d ig = = o h Z.

"taxpayer" means any corporation or group of l ] b ,d i a e corporations filing a return pursuant to Section 7-2A-8.3 NMSA r i = r t e w d 1978 subject to the taxes imposed by the Corporate Income and mFranchise aTax nAct; o d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -11- e a n e d r e l u [ A d SFC/STBTC/SB 151 Franchise Tax Act;

"water's-edge group" means all corporations h that are part of a unitary group, except:

g o (1) corporations that are exempt from t hr h te corporate income tax pursuant to Section 7-2A-4 NMSA 1978;

and i k h r i s (2) corporations organized or incorporated hSFC/STBTC/SB ,151 t,Page 11 outside the United States or its possessions or territories e u g e b l that have less than twenty percent of their property, payroll e e h n d d ig = = o h and sales sourced to locations within the United States, l ] b ,d i a e following the sourcing rules of the Uniform Division of Income r i = r t e w d for Tax Purposes Act;

and mCC. a n o d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -12- e a n e d r e l u [ A d SFC/STBTC/SB 151 CC.

h B.

If eighty percent or more of the New Mexico g o numerators of the property and payroll factors for a filing t hr h te group, or for a taxpayer that is not a member of a filing i k h r i s group, are employed in manufacturing or operating a computer hSFC/STBTC/SB ,151 t,Page 12 processing facility, the filing group or the taxpayer may elect e u g e b l to have business income apportioned to this state by e e h n d d ig = = o h multiplying the income by the sales factor for the taxable l ] b ,d i a e year.

r i = r t e w d C.

If a filing group, or a taxpayer that is not a mmember of a nfiling ogroup, dhas ma :headquarters operation in New Mexico, the filing group or the taxpayer may elect to have business income apportioned to this state by multiplying the income by the sales factor for the taxable year.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -13- e a n e d r e l u [ A d SFC/STBTC/SB 151 member of a filing group, has a headquarters operation in New Mexico, the filing group or the taxpayer may elect to have business income apportioned to this state by multiplying the income by the sales factor for the taxable year.

(2) if the election is made for a taxable year h beginning on or after January 1, 2020, to the taxable year in g o which the election is made and to each taxable year thereafter t hr h te until the taxpayer notifies the department, in writing, that i k h r i s the election is terminated, except that the taxpayerSFC/STBTC/SB shall151 notPage h13 ,taxpayer t,shall not terminate the election until the method of apportioning e u g e b l business income provided by Subsection B or C of this section e e h n d d ig = = o h has been used by the taxpayer for at least three consecutive l ] b ,d i a e taxable years, including a total of at least thirty-six r i = r t e w d calendar months;

and m(3) if the election is made by a nqualifying ofiling dgroup, mthe :election shall apply to the members of the filing group properly included pursuant to Section 7-2A-8.3 NMSA 1978.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -14- e a n e d r e l u [ A d SFC/STBTC/SB 151 (3) if the election is made by a qualifying filing group, the election shall apply to the members of the filing group properly included pursuant to Section 7-2A-8.3 NMSA 1978.

[(1)] (2) "filing group" means "filing group" as that term is defined in the Corporate Income and Franchise Tax Act;

[(2)] (3) "headquarters operation" means:

2) where the centralized functions are primarily h performed, including administrative, planning, managerial, g o human resources, purchasing, information technology and t hr h te accounting, but not including operating a call center;

3) the i k h r i s function and purpose of which is to manage and direct most hSFC/STBTC/SB ,151 t,Page 14 aspects and functions of the business operations within a e u g e b l subdivided area of the United States;

4) from which final e e h n d d ig = = o h authority over regional or subregional offices, operating l ] b ,d i a e facilities and any other offices of the business are issued;

r i = r t e w d and 5) including national and regional headquarters if the mnational aheadquarters nis osubordinate donly mto :the ownership of the business or its representatives and the regional headquarters is subordinate to the national headquarters;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -15- e a n e d r e l u [ A d SFC/STBTC/SB 151 national headquarters is subordinate only to the ownership of the business or its representatives and the regional headquarters is subordinate to the national headquarters;

[(3)] (4) "manufacturing" means combining or processing components or materials to increase their value for sale in the ordinary course of business, but does not include:

provided that "manufacturing" includes electricity generation at a facility that does not require location approval and a certificate of h convenience and necessity prior to commencing construction or g o operation of the facility pursuant to the Public Utility Act;

t hr h te (d) processing natural resources, iSFC/STBTC/SB k151 hPage r15 i s including hydrocarbons;

or h , t, (e) processing or preparation of meals e u g e b l for immediate consumption;

and e e h n d d ig = = o h [(4)] (5) "operating a computer processing l ] b ,d i a e facility" means managing the necessary and ancillary activities rfor ithe =operation rof ta efacility wprimarily dused forto process data or information, but does not include managing the operation of afacilities facilitythat primarilyare predominantly used to processsupport datasales mof atangible nproperty oor dthe mprovision :of banking, financial or professional services." SECTION 3.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -16- e a n e d r e l u [ A d SFC/STBTC/SB 151 or information, but does not include managing the operation of facilities that are predominantly used to support sales of tangible property or the provision of banking, financial or professional services." SECTION 3.

"[NEW"LOCAL MATERIAL] LOCAL JOURNALIST EMPLOYMENT INCOME TAX CREDIT.-- A.

For taxable years prior to January 1, HTRC2032, 2031 HTRC HTRC 2032 HTRC , a taxpayer who is not a dependent of another individual and is an owner of a local news organization that employs a journalist may claim a credit against the taxpayer's tax liability imposed pursuant to the Income 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 income tax h credit".

g o B.

The amount of tax credit shall be in an amount t hr h te equal to thirty percent of wages paid to each journalist i k h r i s employed by a local news organization.

h , t, C.

A taxpayer shall apply for certification of eSFC/STBTC/SB u151 gPage e16 b l eligibility for the tax credit from the department on forms and e e h n d d ig = = o h in the manner prescribed by the department no later than one l ] b ,d i a e year following the end of the calendar year in which the wages r i = r t e w d were paid.

A taxpayer shall not be eligible to receive a tax mcredit for more than seventy-five journalists whom the taxpayer employs as a nlocal onews dorganization mand, :except as provided in Subsections F and G of this section, only one tax credit shall be certified for each journalist employed by a local news organization per taxable year.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -17- e a n e d r e l u [ A d SFC/STBTC/SB 151 credit for more than seventy-five journalists whom the taxpayer employs as a local news organization and, except as provided in Subsections F and G of this section, only one tax credit shall be certified for each journalist employed by a local news organization per taxable year.

h E.

That portion of tax credit that exceeds a g o taxpayer's income tax liability in the taxable year in which t hr h te the credit is claimed shall be refunded to the taxpayer.

i k h r i s F.

Married individuals filing separate returns for h , t, a taxable year for which they could have filed a joint return eSFC/STBTC/SB u151 gPage e17 b l may each claim only one-half of the tax credit that would have e e h n d d ig = = o h been claimed on a joint return.

l ] b ,d i a e G.

A taxpayer may be allocated the right to claim rthe itax =credit rin tproportion eto wthe dtaxpayer's ownership interest if the taxtaxpayer creditowns an interest in proportiona tobusiness theentity taxpayer'sthat ownershipis mtaxed for federal income tax purposes as a npartnership oor dlimited mliability :company and the business entity has met all requirements to be eligible for the credit.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -18- e a n e d r e l u [ A d SFC/STBTC/SB 151 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.

h (a) is paid by a local news organization g o to regularly gather, prepare, collect, photograph, record, t hr h te direct the recording of, produce, write, edit, report or i k h r i s publish news or information that concerns state or local events h , t, or other matters of public interest for disseminationSFC/STBTC/SB to151 thePage e18 udissemination gto ethe b l state or a local community through reporting activities, e e h n d d ig = = o h including conducting interviews, observing current events or l ] b ,d i a e analyzing documents;

r i = r t e w d (b) resides within fifty miles of the mcoverage aarea nassigned oby dthe mlocal :news organization;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -19- e a n e d r e l u [ A d SFC/STBTC/SB 151 coverage area assigned by the local news organization;

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

g o (c) in the case of print publications, t hr h te has published at least one print publication per month over the i k h r i s previous twenty-four months and holds a valid United StatesSFC/STBTC/SB h151 ,Page t,19 States postal service periodical permit or has at least thirty percent e u g e b l of its content dedicated to state or local news;

e e h n d d ig = = o h (d) in the case of digital-only l ] b ,d i a e entities, has published at least three originally produced r i = r t e w d stories about the state or a local community per week maveraged aover nthe oprevious dtwenty-four mmonths :and has at least fifty percent of its digital audience in New Mexico, averaged over a twelve-month period;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -20- e a n e d r e l u [ A d SFC/STBTC/SB 151 HTRC averaged HTRC over the previous twenty-four months and has at least fifty percent of its digital audience in New Mexico, averaged over a twelve- month period;

(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 g o Section 527 of the Internal Revenue Code, or from an t hr h te organization that has been granted exemption from the federal iSFC/STBTC/SB k151 hPage r20 i s income tax by the United States commissioner of internal h , t, revenue as an organization described in Section 501(c)(4) or e u g e b l 501(c)(6) of the Internal Revenue Code;

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

and m(3) "wages" means not more than fifty thousand dollars ($50,000) in compensation paid by a nlocal onews dorganization mto :a journalist through the organization's payroll system, including those wages that the journalist elects to defer or redirect or the journalist's contribution to a 401(k) or cafeteria plan program.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -21- e a n e d r e l u [ A d SFC/STBTC/SB 151 (3) "wages" 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 those wages that the journalist elects to defer or redirect or the journalist's contribution to a 401(k) or cafeteria plan program.

"[NEW"LOCAL MATERIAL] LOCAL JOURNALIST EMPLOYMENT CORPORATE INCOME TAX CREDIT.-- A.

For taxable years prior to January 1, HTRC2032, 2031 HTRC HTRC 2032 HTRC , a taxpayer that is a local news organization that employs a journalist may claim a credit h against the taxpayer's tax liability imposed pursuant to the g o Corporate Income and Franchise Tax Act in an amount provided in tSubsection hrB hof teSFC/STBTC/SB Subsection151 BPage of21 this section.

The tax credit provided by this i k h r i s section may be referred to as the "local journalist employment h , t, corporate income tax credit".

e u g e b l B.

The amount of tax credit shall be in an amount e e h n d d ig = = o h equal to thirty percent of wages paid to each journalist l ] b ,d i a e employed by a local news organization.

r i = r t e w d C.

A taxpayer shall apply for certification of meligibility afor nthe otax dcredit mfrom :the department on forms and in the manner prescribed by the department no later than one year following the end of the calendar year in which the wages were paid.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -22- e a n e d r e l u [ A d SFC/STBTC/SB 151 eligibility for the tax credit from the department on forms and in the manner prescribed by the department no later than one year following the end of the calendar year in which the wages were paid.

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 h providing the amount of tax credit for which the taxpayer is g o eligible and the taxable years in which the credit may be tSFC/STBTC/SB hr151 hPage te22 claimed.

i k h r i s E.

That portion of tax credit that exceeds a h , t, taxpayer's corporate income tax liability in the taxable year e u g e b l in which the credit is claimed shall be refunded to the e e h n d d ig = = o h taxpayer.

l ] b ,d i a e F.

A taxpayer allowed to claim a tax credit r i = r t e w d pursuant to this section shall claim the tax credit in a manner mrequired aby nthe odepartment. d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -23- e a n e d r e l u [ A d SFC/STBTC/SB 151 required by the department.

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

and g o (c) is employed as a journalist by the tSFC/STBTC/SB hr151 hPage te23 local news organization for more than twenty-eight weeks of the i k h r i s taxable year in which the credit is claimed;

h , t, (2) "local news organization" means an entity e u g e b l that:

e(a) eprovides ha nprint dor ddigital igpublication =that =engages oprofessionals hwho (a)regularly providesgather, aprepare, printcollect, orphotograph, digitalrecord, ldirect ]the brecording ,dof, iproduce, awrite, eedit, publicationreport thator engagespublish professionalsnews whoor regularlyinformation gather,that rconcerns istate =or rlocal tevents eor wother dmatters prepare,of collect,public photograph,interest record,for directdissemination to the recordingstate of,or m a nlocal ocommunity dthrough mreporting :activities, including conducting interviews, observing current events or analyzing documents;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -24- e a n e d r e l u [ A d SFC/STBTC/SB 151 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;

(d) in the case of digital-only entities, has published at least three originally produced stories about the state or a local community per week hSFC/STBTC/SB HTRC151 averagedPage HTRC24 averaged over the previous twenty-four months and g o has at least fifty percent of its digital audience in New t hr h te Mexico, averaged over a twelve-twelve-month month period;

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

e(f) ein hthe ncase dof dan igorganization =that =demonstrates oto hthe (f)department inthat the case of an organization thathas lbeen ]granted bexemption ,dfrom ithe afederal eincome demonstratestax toby the departmentUnited thatStates thecommissioner organizationof hasinternal beenrevenue ras iorganizations =described rin tSection e501(c)(3) wof dthe grantedInternal exemptionRevenue fromCode, has declared the federalcoverage incomeof taxstate byor local news as the Unitedstated mmission ain nits ofilings dwith mthe :federal internal revenue service;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -25- e a n e d r e l u [ A d SFC/STBTC/SB 151 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;

and hSFC/STBTC/SB 151 Page 25 (3) "wages" means not more than fifty thousand g o dollars ($50,000) in compensation paid by a local news t hr h te organization to a journalist through the organization's payroll i k h r i s system, including those wages that the journalist elects to h , t, defer or redirect or the journalist's contribution to a 401(k) e u g e b l or cafeteria plan program.

"Wages" does not mean benefits or e e h n d d ig = = o h the organization's share of payroll taxes, social security or l ] b ,d i a e medicare contributions, federal or state unemployment insurance r i = r t e w d contributions or workers' compensation." mSECTION a5. n o d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -26- e a n e d r e l u [ A d SFC/STBTC/SB 151 SECTION 5.

"[NEW"DEDUCTION--GROSS MATERIAL] DEDUCTION--GROSS RECEIPTS--SALE OF CONSTRUCTION MATERIALS AND LABOR USED FOR THE DEVELOPMENT OF AFFORDABLE HOUSING MULTIFAMILY RESIDENTIAL HOUSING PROJECTS.-- A.

Prior to July 1, HTRC2030, 2029 HTRC HTRC 2030 HTRC , receipts from selling construction materials and labor may be deducted from gross receipts if:

Sfl1 and Sfl1 (3) the construction materials and labor are sold to a qualifying grantee for a single project that is hSFC/STBTC/SB 151 Page 26 residential housing pursuant to the Affordable Housing ActAct; g o Sfl1 .

Sfl1and Sfl1(4) ;the buyer of the construction materials and labor delivers a nontaxable transaction certificate to the seller or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978.

andB. Sfl1 t hr h te i k Sfl1 (4) the buyer of the construction h r i s materials and labor delivers a nontaxable transaction h , t, certificate to the seller or provides alternative evidence e u g e b l e e h pursuant to Section 7-9-43 NMSA 1978.

Sfl1A ntaxpayer dallowed da igdeduction =pursuant =to othis hsection B.shall report the amount of the deduction to the department in a manner required by the department.

AC. taxpayer allowed a deduction pursuant to this l ] b ,d i a e section shall report the amount of the deduction to the r i = r t e w d department in a manner required by the department.

m a n o d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -27- e a n e d r e l u [ A d SFC/STBTC/SB 151 C.

(3) "low or moderate income" means a household in which the current annual income is at or below eighty percent of the area median income for the geographic SFC/STBTC/SB 151 Page 27 area in h which the household is located, adjusted for family size, as g o determined by the United States department of housing and urban t hr h te development;

and i k h r i s (4) "multifamily residential housing" means h , t, any building or portion thereof that is primarily occupied, or e u g e b l is designed or intended to be primarily occupied, as a e e h n d d ig = = o h residence by more than three households.

"Multifamily l ] b ,d i a e residential housing" includes congregate housing and r i = r t e w d transitional or temporary housing for homeless persons." mSECTION a6. n o d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -28- e a n e d r e l u [ A d SFC/STBTC/SB 151 SECTION 6.

"[NEW"PHYSICIAN MATERIAL] PHYSICIAN TAX CREDIT.-- A.

HTRC A HTRC HTRC For taxable years prior to January 1, 2032, a HTRC taxpayer who files an individual New Mexico tax return, is not a dependent of another individual, is a physician and provides health care services in New Mexico for at least one thousand five hundred eighty-four hours during a taxable year may claim a credit against the tax liability imposed by the Income Tax Act for that taxable year in an amount equal to ten thousand dollars ($10,000).

h Completed applications shall be considered in the order gSFC/STBTC/SB o151 Page 28 received.

For a taxpayer approved to receive the credit, the t hr h te i k department of health shall issue a certificate of eligibility h r i s to the qualifying physician.

The department of health shall h , t, provide the department with certificates of eligibility issued e u g e b l pursuant to this subsection in an electronic format at e e h n d d ig = = o h regularly agreed-upon intervals.

l ] b ,d i a e C.

That portion of a tax credit that exceeds a r i = r t e w d taxpayer's tax liability in the taxable year in which the mcredit ais nbeing oclaimed dmay mbe :carried forward for up to three consecutive taxable years.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -29- e a n e d r e l u [ A d SFC/STBTC/SB 151 credit is being claimed may be carried forward for up to three consecutive taxable years.

As used in this section, "physician" means a health professional who is a medical physician or an osteopathic physician licensed to practice medicine in New Mexico pursuant to the Medical Practice Act." HTRC SECTION 7.

A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

"[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS--IN-OFFICE h EQUIPMENT AND IN-OFFICE MEDICATION SOLD TO A HEALTH CARE g o PRACTITIONER.-- t hr h te A.

Except for receipts that may be deducted i k h r i s pursuant to Section 7-9-73.3 NMSA 1978, receipts from selling h , t, in-office equipment may be deducted from gross receipts if the e u g e b l sale is made to a health care practitioner or an association of e e h n d d ig = = o h health care practitioners that delivers a nontaxable l ] b ,d i a e transaction certificate to the seller or provides alternative r i = r t e w d evidence pursuant to Section 7-9-43 NMSA 1978.

The in-office m a n o d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -30- e a n e d r e l u [ A d SFC/STBTC/SB 151 equipment must be used exclusively during a service that is within the scope of practice of the health care practitioner providing the service.

B.

Except for receipts that may be deducted pursuant to Section 7-9-73.2 NMSA 1978, receipts from selling in-office medication may be deducted from gross receipts if the sale is made to a health care practitioner or an association of health care practitioners that delivers a nontaxable transaction certificate to the seller or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978.

The in-office medication must be used exclusively for treatment of patients within the scope of practice of the health care practitioner providing the service.

C.

A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.

h D.

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

h , t, E.

As used in this section:

e u g e b l (1) "association of health care practitioners" e e h n d d ig = = o h means a corporation, an unincorporated business entity or other l ] b ,d i a e legal entity organized by, owned by or employing one or more r i = r t e w d health care practitioners;

provided that the entity is not:

m a n o d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -31- e a n e d r e l u [ A d SFC/STBTC/SB 151 (a) an organization 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 United States Internal Revenue Code of 1986, as that section may be amended or renumbered;

or (b) a health maintenance organization or a hospital, a hospice, a nursing home or an entity that is solely an outpatient facility or intermediate care facility licensed by the health care authority;

(2) "health care practitioner" means:

(a) a chiropractic physician licensed pursuant to the provisions of the Chiropractic Physician Practice Act;

(b) a dentist or dental hygienist licensed pursuant to the Dental Health Care Act;

(c) a doctor of oriental medicine h licensed pursuant to the provisions of the Acupuncture and g o Oriental Medicine Practice Act;

t hr h te HTRC Sfl1 (d) a lactation care provider i k h r i s licensed pursuant to the Lactation Care Provider h , t, Act;

Sfl1 HTRC e u g e b l HTRC Sfl1 (d) Sfl1 Sfl1 (e) Sfl1 HTRC e e h n d d ig = = o h HTRC (d) HTRC an optometrist licensed pursuant to the l ] b ,d i a e provisions of the Optometry Act;

r i = r t e w d HTRC Sfl1 (e) Sfl1 Sfl1 (f) Sfl1 HTRC m a n o d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -32- e a n e d r e l u [ A d SFC/STBTC/SB 151 HTRC (e) HTRC an osteopathic physician licensed pursuant to the provisions of the Medical Practice Act;

HTRC Sfl1 (f) Sfl1 Sfl1 (g) Sfl1 HTRC HTRC (f) HTRC a physical therapist licensed pursuant to the provisions of the Physical Therapy Act;

HTRC Sfl1 (g) Sfl1 Sfl1 (h) Sfl1 HTRC HTRC (g) HTRC a physician or physician assistant licensed pursuant to the provisions of the Medical Practice Act;

HTRC Sfl1 (h) Sfl1 Sfl1 (i) Sfl1 HTRC HTRC (h) HTRC a podiatric physician licensed pursuant to the provisions of the Podiatry Act;

HTRC Sfl1 (i) Sfl1 Sfl1 (j) Sfl1 HTRC HTRC (i) HTRC a psychologist licensed pursuant to the provisions of the Professional Psychologist Act;

HTRC Sfl1 (j) Sfl1 Sfl1 (k) Sfl1 HTRC HTRC (j) HTRC a registered lay midwife registered by the h department of health;

g o HTRC Sfl1 (k) Sfl1 Sfl1 (l) Sfl1 HTRC t hr h te i k HTRC (k) HTRC a registered nurse or licensed practical nurse h r i s licensed pursuant to the provisions of the Nursing Practice h , t, Act;

e u g e b l e e h HTRC Sfl1 (l) Sfl1 Sfl1 (m) Sfl1 HTRC n d d ig = = o h HTRC (l) HTRC a registered occupational therapist licensed l ] b ,d i a e pursuant to the provisions of the Occupational Therapy Act;

r i = r t e w d m a n o HTRC Sfl1 (m) Sfl1 Sfl1 (n) Sfl1 HTRC d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -33- e a n e d r e l u [ A d SFC/STBTC/SB 151 HTRC (m) HTRC a respiratory care practitioner licensed pursuant to the provisions of the Respiratory Care Act;

HTRC Sfl1 (n) Sfl1 Sfl1 (o) Sfl1 HTRC HTRC (n) HTRC a speech-language pathologist or audiologist licensed pursuant to the Speech-Language Pathology, Audiology and Hearing Aid Dispensing Practices Act;

HTRC Sfl1 (o) Sfl1 Sfl1 (p) Sfl1 HTRC HTRC (o) HTRC a professional clinical mental health counselor, marriage and family therapist or professional art therapist licensed pursuant to the provisions of the Counseling and Therapy Practice Act who has obtained a master's degree or a doctorate;

HTRC Sfl1 (p) Sfl1 Sfl1 (q) Sfl1 HTRC HTRC (p) HTRC an independent social worker licensed pursuant to the provisions of the Social Work Practice Act;

HTRC Sfl1 (q) Sfl1 Sfl1 (r) Sfl1 HTRC h HTRC (q) HTRC a clinical laboratory that is accredited g o pursuant to 42 U.S.C.

Section 263a but that is not a laboratory t hr h te i k in a physician's office or in a hospital defined pursuant to 42 h r i s U.S.C.

Section 1395x;

HTRC Sfl1 and Sfl1 HTRC HTRC and HTRC h , t, HTRC Sfl1 (r) Sfl1 Sfl1 (s) Sfl1 HTRC e u g e b l e e h HTRC (r) HTRC a naturopathic doctor licensed pursuant to the n d d ig = = o h provisions of the Naturopathic Doctors' Practice Act;

l ] b ,d i a e HTRC Sfl1 and Sfl1 HTRC r i = r t e w d m a n o HTRC Sfl1 (t) a naprapath licensed d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -34- e a n e d r e l u [ A d SFC/STBTC/SB 151 pursuant to the Naprapathic Practice Act;

Sfl1 HTRC (3) "in-office equipment" means equipment used by a health care practitioner primarily to provide medical treatment to patients in the health care practitioner's practice setting.

"In-office equipment" does not mean office furniture that is not primarily used to provide medical treatment, including desks, desk chairs, computers and software;

and (4) "in-office medication" means saline or other non-prescription substance dispensed by a health care practitioner to a patient in the health care practitioner's practice setting to treat the patient's specific illness, injury or other medical necessity." HTRC SECTION HTRC 8 HTRC HTRC 7 HTRC.

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

For taxable years prior to January 1, g2032, oa HTRCSFC/STBTC/SB 2031151 HTRCPage HTRC29 2032 HTRC , a taxpayer who is not a t hr h te i k dependent of another individual and is an owner of a local h r i s news printer that employs a qualified employee may claim a h , t, credit against the taxpayer's tax liability imposed pursuant to e u g e b l e e h the Income Tax Act in an amount provided in Subsection B of n d d ig = = o h this section.

The tax credit provided by this section may be l ] b ,d i a e referred to as the "local news printer income tax credit".

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

The amount of tax credit shall be in an amount dequal mto :the wages 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:

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -35- e a n e d r e l u [ A d SFC/STBTC/SB 151 equal to the wages 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:

A taxpayer shall not be eligible to receive a tax credit for more than one hundred qualified employees whom the taxpayer employs as a local news printer and, except as h provided in Subsections F and G of this section, only one taxSFC/STBTC/SB g151 oPage 30 tax credit shall be certified for each qualified employee employed t hr h te by a local news printer per taxable year.

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

Completed applications shall be l ] b ,d i a e considered in the order received.

r i = r t e w d D.

If the department determines that the taxpayer mmeets the requirements of this section, the department shall issue a ndated ocertificate dof meligibility :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.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -36- e a n e d r e l u [ A d SFC/STBTC/SB 151 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.

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 h or limited liability company and the business SFC/STBTC/SB 151 Page 31 entity has met g o all requirements to be eligible for the credit.

The total t hr h te credit claimed by all members of the partnership or limited i k h r i s liability company shall not exceed the allowable credit h , t, pursuant to this section.

e u g e b l H.

A taxpayer allowed to claim a tax credit e e h n d d ig = = o h pursuant to this section shall claim the tax credit in a manner l ] b ,d i a e required by the department.

r i = r t e w d I.

The credit provided by this section shall be mincluded ain nthe otax dexpenditure mbudget :pursuant to Section 7-1-84 NMSA 1978, including the total annual aggregate cost of the credit.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -37- e a n e d r e l u [ A d SFC/STBTC/SB 151 included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the total annual aggregate cost of the credit.

(b) pays at least one individual, either through employment or by contract with the entity, as aSFC/STBTC/SB h151 Page 32 a qualified employee;

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

e e h n d d ig = = o h (d) in the case of digital-only l ] b ,d i a e entities, has published at least five originally produced r i = r t e w d stories about the state or a local community per week over the mprevious athirty-six nmonths oand dhas mat :least fifty percent of its digital audience in New Mexico, averaged over a twelve-month period;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -38- e a n e d r e l u [ A d SFC/STBTC/SB 151 previous thirty-six months and has at least fifty percent of its digital audience in New Mexico, averaged over a twelve- month period;

SFC/STBTC/SB 151 Page 33 (g) has not received more than ten h percent of the entity's gross receipts for the previous year g o from political action committees or other entities described in t hr h te Section 527 of the Internal Revenue Code, or from an i k h r i s organization that has been granted exemption from the federal h , t, income tax by the United States commissioner of internal e u g e b l revenue as an organization described in Section 501(c)(4) or e e h n d d ig = = o h 501(c)(6) of the Internal Revenue Code;

and l ] b ,d i a e (h) is not a publicly traded entity or r i = r t e w d is no more than forty-nine percent owned, directly or mindirectly, by a npublicly otraded dentity mor :subsidiary;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -39- e a n e d r e l u [ A d SFC/STBTC/SB 151 indirectly, by a publicly traded entity or subsidiary;

SFC/STBTC/SB 151 Page 34 (3) "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-post-press h press newspaper production to prepare newspapers for transition g o to delivery and distribution personnel;

t hr h te (b) works at a physical location in New i k h r i s Mexico;

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

and l ] b ,d i a e (4) "wages" means compensation paid by a local rnews iprinter =to ra tqualified eemployee wthrough dthe newsorganization's printerpayroll tosystem, aincluding those wages that the qualified employee throughelects to defer or redirect or the organization'squalified memployee's contribution to a n401(k) oor dcafeteria mplan :program.

b"Wages" edoes dnot smean obenefits tor nthe =organization's .233921.5AICshare Februaryof 19, 2026 (9:18am) s k m e -40- e a n e d r e l u [ A d SFC/STBTC/SB 151 payroll system,taxes, includingsocial thosesecurity wagesor thatmedicare thecontributions, qualifiedfederal employee elects to defer or redirectstate orunemployment theinsurance qualifiedcontributions employee's contribution to a 401(k) or cafeteriaworkers' plancompensation." program.SECTION 8.

"Wages" 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." SECTION HTRC 9 HTRC HTRC 8 HTRC.

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

For taxable years prior to January 1, HTRC2032, 2031 HTRC HTRC 2032 HTRC , a taxpayer that is an owner of a local news printer that employs a qualified employee may claim a credit against the SFC/STBTC/SB 151 Page 35 taxpayer's tax liability imposed pursuant to the Corporate Income and Franchise Tax Act in an h amount provided in Subsection B of this section.

The tax g o credit provided by this section may be referred to as the t hr h te "local news printer corporate income tax credit".

i k h r i s B.

The amount of tax credit shall be in an amount h , t, equal to the wages paid to each qualified employee employed by e u g e b l a local news printer in the taxable year for which the tax e e h n d d ig = = o h credit is claimed, not to exceed:

l ] b ,d i a e (1) ten thousand dollars ($10,000) for a r i = r t e w d qualified employee working an average of twenty hours or more mper aweek nin othe dtaxable myear; :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -41- e a n e d r e l u [ A d SFC/STBTC/SB 151 per week in the taxable year;

The total annual aggregate amount of local news printer corporate SFC/STBTC/SB 151 Page 36 income tax credits and local news printer income tax credits that may be certified in a calendar year shall not exceed one million h dollars ($1,000,000).

Completed applications shall be g o considered in the order received.

t hr h te D.

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

r i = r t e w d E.

That portion of tax credit that exceeds a mtaxpayer's aincome ntax oliability din mthe :taxable year in which the credit is claimed shall be refunded to the taxpayer.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -42- e a n e d r e l u [ A d SFC/STBTC/SB 151 taxpayer's income tax liability in the taxable year in which the credit is claimed shall be refunded to the taxpayer.

(a) provides a print or digital publication that engages professionals who regularly gather, SFC/STBTC/SB 151 Page 37 prepare, collect, photograph, record, direct the recording of, produce, write, edit, report or publish news or information h that concerns state or local events or other matters of public g o interest for dissemination to the state or a local community t hr h te through reporting activities, including conducting interviews, i k h r i s observing current events or analyzing documents;

h , t, (b) pays at least one individual, either e u g e b l through employment or by contract with the entity, as a e e h n d d ig = = o h qualified employee;

l ] b ,d i a e (c) in the case of print publications, r i = r t e w d has published at least one print publication per month over the mprevious thirty-six months and holds a nvalid oUnited dStates mpostal :service periodical permit or has at least thirty percent of the entity's content dedicated to state or local news;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -43- e a n e d r e l u [ A d SFC/STBTC/SB 151 previous thirty-six months and holds a valid United States postal service periodical permit or has at least thirty percent of the entity's content dedicated to state or local news;

(e) discloses in the entity's print publication or on the entity's website the entity's beneficial ownership or, in the case of a not-for-profit SFC/STBTC/SB 151 Page 38 entity, the entity's 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 h States commissioner of internal revenue as organizations g o described in Section 501(c)(3) of the Internal Revenue Code, t hr h te has declared the coverage of state or local news as the stated i k h r i s mission in the organization's filings with the federal internal h , t, revenue service;

e u g e b l (g) has not received more than ten e e h n d d ig = = o h percent of the entity's gross receipts for the previous year l ] b ,d i a e from political action committees or other entities described in r i = r t e w d Section 527 of the Internal Revenue Code, or from an morganization athat nhas obeen dgranted mexemption :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;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -44- e a n e d r e l u [ A d SFC/STBTC/SB 151 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;

(a) provides manufacturing, production and printing services using a web press designed and optimized for printing newspapers for a local news SFC/STBTC/SB 151 Page 39 organization;

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

i k h r i s (3) "qualified employee" means a person who:

h , t, (a) is paid by a local news printer to e u g e b l regularly perform duties related to pre-press, press and post-post-press e e h n d d ig = = o h press newspaper production to prepare newspapers for transition l ] b ,d i a e to delivery and distribution personnel;

r i = r t e w d (b) works at a physical location in New mMexico; a n o d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -45- e a n e d r e l u [ A d SFC/STBTC/SB 151 Mexico;

"Wages" does not mean benefits or the SFC/STBTC/SB 151 Page 40 organization's share of payroll taxes, social security or medicare contributions, federal or state unemployment insurance contributions or workers' compensation." HTRC SECTION 9.

Section 7-9G-1 NMSA 1978 (being Laws 2004, Chapter 15, Section 1, as amended by Laws 2025, Chapter 107, Section 1 and by Laws 2025, Chapter 130, Section 93) is h amended to read:

g o "7-9G-1.

HIGH-WAGE JOBS TAX CREDIT--QUALIFYING HIGH-WAGE t hr h te i k JOBS.-- h r i s A.

A taxpayer that is an eligible employer may h , t, apply for, and the department may allow, a tax credit for each e u g e b l e e h new high-wage job.

The credit provided in this section may be n d d ig = = o h referred to as the "high-wage jobs tax credit".

l ] b ,d i a e B.

The purpose of the high-wage jobs tax credit is r i = r t e w d to provide an incentive for businesses to create and fill new mhigh-wage ajobs nin oNew dMexico. m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e -46- e a n e d r e l u [ A d SFC/STBTC/SB 151 high-wage jobs in New Mexico.

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-high-wage wage job is created and for consecutive qualifying periods.

SFC/STBTC/SB 151 Page 41 D.

The annual application shall contain the certification required by Subsection K of this section and shall contain all qualifying periods that closed during the calendar year for which the h application is made.

Any qualifying period that did not close g o in the calendar year for which the application is made shall be t hr h te i k denied by the department.

The application for a calendar year h r i s shall be filed no later than December 31 of the following h , t, calendar year.

If a taxpayer fails to file the annual e u g e b l e e h application within the time limits provided in this section, n d d ig = = o h the application shall be denied by the department.

l ] b ,d i a e E.

A new high-wage job shall not be eligible for a rcredit ipursuant =to rthis tsection efor wthe dinitial mqualifying aperiod nunless othe crediteligible pursuantemployer's tototal thisnumber sectionof foremployees with threshold jobs on the last day of the initial qualifying dperiod mat :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.

bA enew dhigh-wage sjob oshall tnot nbe =eligible .233921.5AICfor Februarya 19,credit 2026pursuant (9:18am)to sthis ksection mfor e - 47 - e a nconsecutive equalifying d r e l u [ A d SFC/STBTC/SB 151 period unless the eligible employer's total number of employees with threshold jobs onSFC/STBTC/SB the151 lastPage day42 of the initial qualifying period at thea location at which the job is performed or based ison atthe leastlast oneday moreof that qualifying period is greater than or equal to the number of threshold jobs at that same location on the last day priorof to the dateinitial qualifying period for the new high-wage jobjob. 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.

Except as provided in Subsection H of this h section, a new high-wage job shall not be eligible for a credit g o pursuant to this section if:

t hr h te i k (1) the new high-wage job is created due to a h r i s business merger or acquisition or other change in business h , t, organization;

e u g e b l e e h (2) the eligible employee was terminated from n d d ig = = o h employment in New Mexico by another employer involved in the l ] b ,d i a e business merger or acquisition or other change in business r i = r t e w d m a n o organization with the taxpayer;

and d(3) mthe :new high-wage job is performed by:

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e - 48 - e a n e d r e l u [ A d SFC/STBTC/SB 151 (3) the new high-wage job is performed by:

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 SFC/STBTC/SB 151 Page 43 organization.

The new employer that results from a business merger or acquisition or other change in h business organization may only claim the high-wage jobs tax g o credit for the balance of the consecutive qualifying periods t hr h te i k for which the new high-wage job is otherwise eligible.

h r i s I.

A new high-wage job shall not be eligible for a h , t, credit pursuant to this section if the job is created due to an e u g e b l e e h eligible employer entering into a contract or becoming a n d d ig = = o h subcontractor to a contract with a governmental entity that l ] b ,d i a e replaces one or more entities performing functionally requivalent iservices =for rthe tgovernmental eentity wunless dthe mjob is a nnew ohigh-wage equivalentjob servicesthat forwas thenot governmentalbeing entityperformed unlessby thean jobemployee dof mthe :replaced entity.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e - 49 - e a n e d r e l u [ A d SFC/STBTC/SB 151 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 SFC/STBTC/SB 151 Page 44 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.

(2) the number of weeks each position was h occupied during the qualifying period;

g o (3) whether the new high-wage job was in a t hr h te i k municipality with a population of sixty thousand or more or h r i s with a population of less than sixty thousand according to the h , t, most recent federal decennial census and whether the job was in e u g e b l e e h the unincorporated area of a county;

n d d ig = = o h (4) which qualifying period the application l ] b ,d i a e pertains to for each eligible employee;

r(5) ithe =total rnumber tof eemployees wemployed dby mthe aemployer nat othe (5)job location on the totalday numberprior ofto employeesthe employedqualifying byperiod dand mon :the last day of the qualifying period;

b(6) ethe dtotal snumber oof tthreshold njobs =performed .233921.5AICor Februarybased 19,at 2026the (9:18am)eligible semployer's klocation mon ethe - 50 - e a n e d r e l u [ A d SFC/STBTC/SB 151 thePage employer45 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;

(9) whether the eligible employer has ceased h business operations at any of its business locations in New g o Mexico;

and t hr h te i k (10) whether the application is precluded by h r i s Subsection O of this section.

h , t, L.

Any person who willfully submits a false, e u g e b l e e h incorrect or fraudulent certification required pursuant to n d d ig = = o h Subsection K of this section shall be subject to all applicable l ] b ,d i a e penalties under the Tax Administration Act, except that the r i = r t e w d m a n o amount on which the penalty is based shall be the total amount dof mcredit :requested on the application for approval.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e - 51 - e a n e d r e l u [ A d SFC/STBTC/SB 151 of credit requested on the application for approval.

Except as provided in Subsection N of this section, an approved high-wage jobs tax credit shall be SFC/STBTC/SB 151 Page 46 claimed against the taxpayer's modified combined tax liability and shall be filed with the return due immediately following the date of the credit approval.

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 h taxpayer's modified combined tax liability.

g o O.

A taxpayer that has received a high-wage jobs t hr h te i k tax credit shall not submit a new application for the credit h r i s for a minimum of two calendar years from the closing date of h , t, the last qualifying period for which the taxpayer received the e u g e b l e e h credit if the taxpayer lost eligibility to claim the credit n d d ig = = o h from a previous application pursuant to Subsection N of this l ] b ,d i a e section.

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

The economic development department and the dtaxation mand :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 SFC/STBTC/SB 151 Page 47 on company recruitment and job creation.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e - 52 - e a n e d r e l u [ A d SFC/STBTC/SB 151 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.

(3) "department" means the taxation and h revenue department;

g o (4) "dependent" means "dependent" as defined t hr h te i k in 26 U.S.C.

152(a), as that section may be amended or h r i s renumbered;

h , t, (5) "domicile" means the sole place where an e u g e b l e e h individual has a true, fixed, permanent home.

It is the place n d d ig = = o h where the individual has a voluntary, fixed habitation of self l ] b ,d i a e and family with the intention of making a permanent home;

r(6) i"eligible =employee" rmeans tan eindividual wSFC/STBTC/SB d151 mPage a48 nwho ois demployed min :New Mexico by an eligible employer and who is a resident of New Mexico;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e - 53 - e a n e d r e l u [ A d SFC/STBTC/SB 151 (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 h percent of the capital and profits interests in the entity;

g o (7) "eligible employer" means an employer t hr h te i k that, during the applicable qualifying period, would be h r i s eligible for development training program assistance under the h , t, fiscal year 2019 policies defining development training program e u g e b l e e h eligibility developed by the industrial training board in n d d ig = = o h accordance with Section 21-19-7 NMSA 1978;

l(8) ]"modified bcombined ,dtax iliability" ameans ethe (8)total "modifiedliability combinedfor the reporting period for the gross receipts tax liability"imposed meansby rSection i7-9-4 =NMSA r1978 ttogether ewith wSFC/STBTC/SB d151 mPage a49 nany otax collected at the totalsame liabilitytime forand in the reportingsame periodmanner foras the gross dreceipts mtax, :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;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e - 54 - e a n e d r e l u [ A d SFC/STBTC/SB 151 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 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] 2036 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 h to be at least:

u r (a) sixty thousand dollars ($60,000) if t h g te the job is performed or based in or within ten miles of the l i h r i s external boundaries of a municipality with a population of h , e h sixty thousand or more according to the most recent federal t u g e b l e e , g decennial census or in a class H county;

and n d d i = = o h (b) forty thousand dollars ($40,000) if l ] b ,d i a r the job is performed or based in a municipality with a epopulation rof =less tthan esixty wthousand daccording mto athe nmost orecent populationfederal decennial census or in the unincorporated SFC/STBTC/SB 151 Page 50 area, that is not within ten miles of lessthe thanexternal boundaries of a municipality with a population of sixty thousand accordingor tomore, theof mosta dcounty mother :than a class H county;

b r e t o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e - 55 - e a n e d r e l u [ A d SFC/STBTC/SB 151 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;

h (a) is occupied for at least forty-four g o weeks of the first fifty-two weeks of employment by an eligible t hr h te i k employee;

provided that the fifty-two-week period begins on the h r i s day the eligible employee occupies the job;

and h , t, (b) meets the wage requirements for a e u g e b l e e h "new high-wage job";

and n d d ig = = o h (14) "wages" means all compensation paid by an l ] b ,d i a e eligible employer to an eligible employee through the remployer's ipayroll =system, rincluding tthose ewages wthat dthe mSFC/STBTC/SB 151 Page 51 employee elects to defer or redirect or the employee's contribution to a n401(k) oor cafeteria plan program, but "wages" does not include benefits or the employer's share of payroll system,taxes, includingsocial thosesecurity wagesor thatmedicare thecontributions, dfederal mor :state unemployment insurance contributions or workers' compensation." SECTION 10.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e - 56 - e a n e d r e l u [ A d SFC/STBTC/SB 151 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 10.

The salary increases shall be effective h the first full pay period after July 1, 2026, and distributed g o as follows:

t hr h te i k (1) three hundred twenty-four thousand nine h r i s hundred dollars ($324,900) for permanent legislative employees, h , t, including permanent employees of the legislative council e u g e b l e e h service, legislative finance committee, legislative education n d d ig = = o h study committee, legislative building services, house and l ] b ,d i a e senate, house and senate chief clerks' office and house and r i = r t e w d m a n o senate leadership;

dSFC/STBTC/SB m151 :Page 52 (2) three million four hundred seventy-seven thousand three hundred dollars ($3,477,300) for judicial permanent employees, including magistrate judges, elected district attorneys, district attorney permanent employees, public defender department permanent employees, judicial hearing officers and judicial special commissioners, supreme court justices, court of appeals judges, district court judges and metropolitan court judges;

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e - 57 - e a n e d r e l u [ A d SFC/STBTC/SB 151 (2) three million four hundred seventy-seven thousand three hundred dollars ($3,477,300) for judicial permanent employees, including magistrate judges, elected district attorneys, district attorney permanent employees, public defender department permanent employees, judicial hearing officers and judicial special commissioners, supreme court justices, court of appeals judges, district court judges and metropolitan court judges;

(4) twelve million twenty-three thousand eight hundred dollars ($12,023,800) to the higher education department for nonstudent faculty and staff of two-year and h four-year public post-secondary educational institutions;

and g o (5) five hundred eighty-three thousand three t hr h te i k hundred dollars ($583,300) to the higher education department h r i s for nonstudent faculty and staff of the New Mexico military h , t, institute, New Mexico school for the blind and visually e u g e b l e e h impaired and New Mexico school for the deaf.

n d d ig = = o h B.

Thirty-six million forty-three thousand seven l ] b ,d i a e hundred dollars ($36,043,700) is appropriated from the general rfund ito =the rstate tequalization eguarantee wdistribution dSFC/STBTC/SB m151 aPage n53 oof the public school fund for expenditure in fiscal year 2027 to therecruit stateand equalizationretain guaranteepublic distributionschool ofpersonnel, thecomparable dto man :average one percent salary increase.

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e - 58 - e a n e d r e l u [ A d SFC/STBTC/SB 151 public school fund for expenditure in fiscal year 2027 to recruit and retain public school personnel, comparable to an average one percent salary increase.

For those state employees whose salaries are referenced in or received as a result of nongeneral fund appropriations in the General Appropriation Act of 2026, the department of finance and administration shall transfer from h the appropriate fund to the appropriate agency the amount g o required for the salary increases equivalent to those provided t hr h te i k for in this section.

Such amounts are appropriated for h r i s expenditure in fiscal year 2027.

Any unexpended balances h , t, remaining at the end of fiscal year 2027 shall revert to the e u g e b l e e h appropriate fund.

HTRC n d d ig = = o h HTRC SECTION 10.

APPLICABILITY.-- l ] b ,d i a e A.

The provisions of Sections 1 and 2 of this act r i = r t e w d m a n o apply to taxable years beginning on or after January 1, 2027.

d m :

b e d s o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e - 59 - e a n e d r e l u [ A d SFC/STBTC/SB 151 B.

The provisions of Sections 3, 4, 6, 8 and 9 of this act apply to taxable years beginning on or after January 1, 2026.

EFFECTIVE DATE.--The effective date of the provisions of Sections 5 and 7 of this act is July 1, 2026.

HTRC HTRC SECTION 11.

SFC/STBTC/SB 151 Page 54 SECTION 12.

HTRCSFC/STBTC/SB -151 60Page -55 h4 u6 r8 t25 h g te l i h r i s h , e h t u g e b l e e , g n d d i = = o h l ] b ,d i a r e r = t e w d m a n o d m :

b r e t o t n = .233921.5AIC February 19, 2026 (9:18am) s k m e e a n e d r e l u [ A d