New Mexico 2026 Regular Session Status: In Committee Bipartisan · 3 D · 2 R cosponsors

HB 27 — TECHNOLOGY JOBS R&D TAX CREDIT EXPANSION

Last action — action postponed indefinitely

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

This bill is in committee in the House. Introduced January 02, 2026. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House.

Odds of enactment

Low chance

Based on the sponsor, cosponsors, and committee posture, this bill has a low 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

Advancing 40% · moderate confidence

  • In Committee

    Current position in the legislative process.

  • 5 sponsors

    5 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (3 D · 2 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

277 added · 208 removed

Plain-language change summary

The recent amendment to Bill HB 27 introduces a provision that allows the transferability of industrial revenue bond projects for a limited period. This change means that these bonds, which help fund projects by offering tax benefits, can now be transferred between entities, potentially making them more attractive to investors and promoting economic development. Overall, this flexibility could lead to more effective use of financial resources for growth and job creation in the state.

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HOUSE BILL 27 57TH LEGISLATURE- STATE OF NEW MEXICO - SECOND SESSION, 2026 INTRODUCED BY Meredith A.
HOUSE COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE SUBSTITUTE FOR HOUSE BILL 27 57TH LEGISLATURE- STATE OF NEW MEXICO - SECOND SESSION, 2026 4 6 8 10 AN ACT RELATING TO TAXATION;
Dixon and Michael Padilla and Joshua N.
EXPANDING THE DEFINITION OF "QUALIFIED EXPENDITURE" IN THE TECHNOLOGY JOBS AND RESEARCH AND DEVELOPMENT TAX CREDIT ACT TO INCLUDE EXPENDITURES FOR PROPERTY THAT IS OWNED BY A MUNICIPALITY OR COUNTY IN CONNECTION WITH AN INDUSTRIAL REVENUE BOND PROJECT;
Hernandez and Linda Serrato and Nicole Tobiassen 7 9 AN ACT RELATING TO TAXATION;
ALLOWING TRANSFERABILITY FOR A LIMITED PERIOD.
EXPANDING THE DEFINITION OF "QUALIFIED EXPENDITURE" IN THE TECHNOLOGY JOBS AND RESEARCH AND DEVELOPMENT TAX CREDIT ACT TO INCLUDE EXPENDITURES FOR PROPERTY THAT IS OWNED BY A MUNICIPALITY OR COUNTY IN CONNECTION WITH AN INDUSTRIAL REVENUE BOND PROJECT.
e t 17 w l n d 18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
e t 17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
= = 19 a l SECTION 1.
w l n d 18 SECTION 1.
Section 7-9F-3 NMSA 1978 (being Laws 2000 (2nd i a e r 20 S.S.), Chapter 22, Section 3, as amended by Laws 2019, Chapter a t m m 21 270, Section 38 and by Laws 2019, Chapter 274, Section 12) is d r e 22 amended to read:
Section 7-9F-3 NMSA 1978 (being Laws 2000 (2nd = = 19 a l S.S.), Chapter 22, Section 3, as amended by Laws 2019, Chapter i a e r 20 270, Section 38 and by Laws 2019, Chapter 274, Section 12) is a t m m 21 amended to read:
c e s k 23 "7-9F-3.
d r e 22 "7-9F-3.
DEFINITIONS.--As used in the Technology Jobs and e a n b 24 Research and Development Tax Credit Act:
DEFINITIONS.--As used in the Technology Jobs and c e s k 23 Research and Development Tax Credit Act:
u [ A.
e a n b 24 A.
"affiliate" means a person who directly or .233339.1 HCEDC/HB 27 indirectly owns or controls, is owned or controlled by or is under common ownership or control with another person through ownership of voting securities or other ownership interests representing a majority of the total voting power of the entity;
"affiliate" means a person who directly or u [ indirectly owns or controls, is owned or controlled by or is .232299.2 under common ownership or control with another person through ownership of voting securities or other ownership interests representing a majority of the total voting power of the entity;
"base payroll expense" means the wages paid or payable by the taxpayer in the taxable year prior to the taxable year for which the taxpayer applies for an additional credit pursuant to the Technology Jobs and Research and Development Tax Credit Act, adjusted for any increase from the preceding taxable year in the consumer price index for the United States for all items as published by the United States e t 17 department of labor in the taxable year for which the w l n d 18 additional credit is claimed.
"base payroll expense" means the wages paid or payable by the taxpayer in the taxable year prior to the taxable year for which the taxpayer applies for an additional credit pursuant to the Technology Jobs and Research and Development Tax Credit Act, adjusted for any increase from the preceding taxable year in the consumer price index for the e t 17 United States for all items as published by the United States w l n d 18 department of labor in the taxable year for which the = = 19 additional credit is claimed.
In a taxable year during which a = = 19 a l taxpayer has been part of a business merger or acquisition or i a e r 20 other change in business organization, the taxpayer's base a t m m 21 payroll expense shall include the payroll expense of all d r e 22 entities included in the reorganization for all positions that c e s k 23 are included in the business entity resulting from the e a n b 24 reorganization;
In a taxable year during which a a l i a e r 20 taxpayer has been part of a business merger or acquisition or a t m m 21 other change in business organization, the taxpayer's base d r e 22 payroll expense shall include the payroll expense of all c e s k 23 entities included in the reorganization for all positions that e a n b 24 are included in the business entity resulting from the u [ reorganization;
u [ D.
.233339.1 - 2 - HCEDC/HB 27 D.
"department" means the taxation and revenue .232299.2 - 2 - department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;
"data center" means a facility that primarily contains electronic equipment used to process, store and transmit digital information;
E.
[D.] E.
"department" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;
[E.] F.
F.
14 [F.] G.
"local option gross receipts tax" means a tax authorized to be imposed by a county or municipality upon a taxpayer's gross receipts, as that term is defined in the Gross Receipts and Compensating Tax Act, and required to be collected by the department at the same time and in the same manner as the gross receipts tax;
"local option gross receipts tax" means a tax authorized to be imposed by a county or municipality upon a taxpayer's gross receipts, as that term is defined in the Gross e t 17 Receipts and Compensating Tax Act, and required to be collected w l n d 18 by the department at the same time and in the same manner as = = 19 the gross receipts tax;
G.
a l i a e r 20 [G.] H.
"qualified expenditure" means an expenditure or e t 17 an allocated portion of an expenditure by a taxpayer in w l n d 18 connection with qualified research at a qualified facility, = = 19 a l including expenditures for depletable land and rent paid or i a e r 20 incurred for land, improvements, the allowable amount paid or a t m m 21 incurred to operate or maintain a facility, buildings, d r e 22 equipment, computer software, computer software upgrades, c e s k 23 consultants and contractors performing work in New Mexico, e a n b 24 payroll, technical books and manuals and test materials, but u [ not including any expenditure [on property that is owned by a .232299.2 - 3 - municipality or county in connection with an industrial revenue bond project] for property for which the taxpayer has received any credit pursuant to the Investment Credit Act, property that was owned by the taxpayer or an affiliate before July 3, 2000 or research and development expenditures reimbursed by a person who is not an affiliate of the taxpayer.
"qualified expenditure" means an a t m m 21 expenditure or an allocated portion of an expenditure by a d r e 22 taxpayer in connection with qualified research at a qualified c e s k 23 facility, including expenditures for depletable land and rent e a n b 24 paid or incurred for land, improvements, the allowable amount u [ paid or incurred to operate or maintain a facility, buildings, .233339.1 - 3 - HCEDC/HB 27 equipment, computer software, computer software upgrades, consultants and contractors performing work in New Mexico, payroll, technical books and manuals and test materials, but not including any expenditure on property that is owned by a municipality or county in connection with an industrial revenue bond project issued prior to January 1, 2025 for property for which the taxpayer has received any credit pursuant to the Investment Credit Act, property that was owned by the taxpayer or an affiliate before July 3, 2000 or research and development expenditures reimbursed by a person who is not an affiliate of the taxpayer.
H.
[H.] I.
"qualified facility" means a facility in New Mexico at which qualified research is conducted.
"qualified facility" means a facility in e t 17 New Mexico at which qualified research is conducted.
[other than] "Qualified facility" does not mean a facility operated by a taxpayer for the United States or any agency, department or instrumentality thereof, a facility in New Mexico designated as a national laboratory by an act of congress or a research e t 17 facility in New Mexico that is owned by the state;
[other w l n d 18 than] "Qualified facility" does not mean a facility operated by = = 19 a taxpayer for the United States or any agency, department or a l i a e r 20 instrumentality thereof, a facility in New Mexico designated as a t m m 21 a national laboratory by an act of congress, a research d r e 22 facility in New Mexico that is owned by the state or a facility c e s k 23 that is a data center;
w l n d 18 I.
e a n b 24 [I.] J.
= = 19 a l (1) that is undertaken for the purpose of i a e r 20 discovering information:
u [ (1) that is undertaken for the purpose of .233339.1 - 4 - HCEDC/HB 27 discovering information:
a t m m 21 (a) that is technological in nature;
(a) that is technological in nature;
and d r e 22 (b) the application of which is intended c e s k 23 to be useful in the development of a new or improved business e a n b 24 component of the taxpayer;
and (b) the application of which is intended to be useful in the development of a new or improved business component of the taxpayer;
and u [ (2) substantially all of the activities of .232299.2 - 4 - which constitute elements of a process of experimentation related to a new or improved function, performance, reliability or quality, but not related to style, taste or cosmetic or seasonal design factors;
and (2) substantially all of the activities of which constitute elements of a process of experimentation related to a new or improved function, performance, reliability or quality, but not related to style, taste or cosmetic or seasonal design factors;
J.
[J.] K.
(1) employed no more than fifty employees as determined by the number of employees for which the taxpayer was liable for unemployment insurance coverage in the taxable year for which an additional credit is claimed;
(1) employed no more than fifty employees as 14 determined by the number of employees for which the taxpayer was liable for unemployment insurance coverage in the taxable year for which an additional credit is claimed;
(2) had total qualified expenditures of no more than five million dollars ($5,000,000) in the taxable year for which an additional credit is claimed;
e t 17 (2) had total qualified expenditures of no w l n d 18 more than five million dollars ($5,000,000) in the taxable year = = 19 for which an additional credit is claimed;
and (3) did not have more than fifty percent of its voting securities or other equity interest with the right to designate or elect the board of directors or other governing e t 17 body of the business owned directly or indirectly by another w l n d 18 business;
and a l i a e r 20 (3) did not have more than fifty percent of a t m m 21 its voting securities or other equity interest with the right d r e 22 to designate or elect the board of directors or other governing c e s k 23 body of the business owned directly or indirectly by another e a n b 24 business;
= = 19 a l K.
u [ [K.] L.
"rural area" means any area of the state other i a e r 20 than the state fairgrounds, an incorporated municipality with a a t m m 21 population of thirty thousand or more according to the most d r e 22 recent federal decennial census and any area within three miles c e s k 23 of the external boundaries of an incorporated municipality with e a n b 24 a population of thirty thousand or more according to the most u [ recent federal decennial census;
"rural area" means any area of the state .233339.1 - 5 - HCEDC/HB 27 other than the state fairgrounds, an incorporated municipality with a population of thirty thousand or more according to the most recent federal decennial census and any area within three miles of the external boundaries of an incorporated municipality with a population of thirty thousand or more according to the most recent federal decennial census;
.232299.2 - 5 - L.
[L.] M.
or (4) for purposes of the additional credit against the taxpayer's income tax pursuant to the Technology Jobs and Research and Development Tax Credit Act and to the extent of their respective interest in that entity, the shareholders, members, partners or other owners of:
or e t 17 (4) for purposes of the additional credit w l n d 18 against the taxpayer's income tax pursuant to the Technology = = 19 Jobs and Research and Development Tax Credit Act and to the a l i a e r 20 extent of their respective interest in that entity, the a t m m 21 shareholders, members, partners or other owners of:
(a) a small business corporation that e t 17 has elected to be treated as an S corporation for federal w l n d 18 income tax purposes;
d r e 22 (a) a small business corporation that c e s k 23 has elected to be treated as an S corporation for federal e a n b 24 income tax purposes;
or = = 19 a l (b) an entity treated as a partnership i a e r 20 or disregarded entity for federal income tax purposes;
or u [ (b) an entity treated as a partnership .233339.1 - 6 - HCEDC/HB 27 or disregarded entity for federal income tax purposes;
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and a t m m 21 M.
and [M.] N.
"wages" means remuneration for services d r e 22 performed by an employee in New Mexico for an employer." c e s k 23 SECTION 2.
"wages" means remuneration for services performed by an employee in New Mexico for an employer." SECTION 2.
Section 7-9F-9.1 NMSA 1978 (being Laws 2015 e a n b 24 (1st S.S.), Chapter 2, Section 17) is amended to read:
Section 7-9F-9 NMSA 1978 (being Laws 2000 (2nd S.S.), Chapter 22, Section 9, as amended) is amended to read:
u [ "7-9F-9.1.
"7-9F-9.
CLAIMING THE ADDITIONAL CREDIT.-- .232299.2 - 6 - A.
CLAIMING THE BASIC CREDIT.-- A.
A taxpayer may apply for approval of an additional credit pursuant to the Technology Jobs and Research and Development Tax Credit Act within one year following the end of the taxable year in which the qualified expenditure was made.
A taxpayer may apply for approval of [a] the basic credit within one year following the end of the reporting period in which the qualified expenditure was made.
An application shall include the certificate of eligibility pursuant to Subsection B of this section.
A taxpayer that has applied for and been granted approval for an additional credit by the department pursuant to the Technology Jobs and Research and Development Tax Credit Act may claim the amount of the approved additional credit against the taxpayer's income tax or corporate income tax liability.
If all of the requirements for the basic credit have been complied with, the department shall issue to the applicant a certificate of eligibility for the appropriate taxable year.
Except as provided in Subsection C of this section, no taxpayer may claim an amount of approved additional credit for a taxable year in which the additional credit is being claimed that exceeds the amount of the taxpayer's income tax or corporate income tax due for that taxable year.
The certificate of eligibility shall be numbered for identification and declare its date of issuance and the e t 17 amount of tax credit allowed.
w l n d 18 C.
For basic credits allowed for taxable years 2026 = = 19 through 2028, a certificate of eligibility may be sold, a l i a e r 20 exchanged or otherwise transferred to another taxpayer;
a t m m 21 provided that certificates for basic credits and additional d r e 22 credits that exceed fifty million dollars ($50,000,000) for a c e s k 23 taxable year shall not be transferred.
The transfer of a e a n b 24 certificate of eligibility shall be allowed in the order that a u [ claim for the basic credit is received.
The parties to a .233339.1 - 7 - HCEDC/HB 27 transaction to sell, exchange or transfer an additional credit shall notify the department of the transaction within ten days of the sale, exchange or transfer.
[B.] D.
A taxpayer having applied for and been granted approval for a basic credit by the department pursuant to the Technology Jobs and Research and Development Tax Credit Act may claim the amount of the approved basic credit against the taxpayer's compensating tax, withholding tax or gross receipts tax, excluding local option gross receipts tax, due to the state of New Mexico;
provided that no taxpayer may claim an amount of approved basic credit for a reporting period in which the basic credit is being claimed that exceeds the sum of the taxpayer's compensating tax, withholding tax and gross receipts tax, excluding local option gross receipts tax, due for that reporting period.
[C.] E.
Any amount of approved basic credit not e t 17 claimed against the taxpayer's compensating tax, withholding w l n d 18 tax or gross receipts tax, excluding local option gross = = 19 receipts tax, due may be claimed in subsequent reporting a l i a e r 20 periods for a period of up to [three] seven years from the date a t m m 21 of the original claim." d r e 22 SECTION 3.
Section 7-9F-9.1 NMSA 1978 (being Laws 2015 c e s k 23 (1st S.S.), Chapter 2, Section 17) is amended to read:
e a n b 24 "7-9F-9.1.
CLAIMING THE ADDITIONAL CREDIT.-- u [ A.
A taxpayer may apply for approval of an .233339.1 - 8 - HCEDC/HB 27 additional credit pursuant to the Technology Jobs and Research and Development Tax Credit Act within one year following the end of the taxable year in which the qualified expenditure was made.
An application shall include the certificate of eligibility pursuant to Subsection B of this section.
B.
If all of the requirements for the additional credit have been complied with, the department shall issue to the applicant a certificate of eligibility for the appropriate taxable year.
The certificate of eligibility shall be numbered for identification and declare its date of issuance and the amount of tax credit allowed.
If a taxpayer is a qualified research and e t 17 development small business and the amount of approved w l n d 18 additional credit for the taxable year in which the additional = = 19 a l credit is being claimed exceeds the taxpayer's income tax i a e r 20 liability or corporate income tax liability, the excess shall a t m m 21 be refunded to the taxpayer pursuant to Paragraphs (1) through d r e 22 (3) of this subsection.
For additional credits allowed for taxable years through 2028, a certificate of eligibility may be sold, 14 exchanged or otherwise transferred to another taxpayer;
If the taxpayer's total qualified c e s k 23 expenditures for the taxable year for which the claim is made e a n b 24 is:
provided that certificates for basic credits and additional credits that exceed fifty million dollars ($50,000,000) for a e t 17 taxable year shall not be transferred.
u [ (1) less than three million dollars .232299.2 - 7 - ($3,000,000), the excess additional credit shall be refunded to the taxpayer;
The transfer of a w l n d 18 certificate of eligibility shall be allowed in the order a = = 19 claim for the additional credit is received.
(2) greater than or equal to three million dollars ($3,000,000) and less than four million dollars ($4,000,000), two-thirds of the excess additional credit shall be refunded to the taxpayer;
The parties to a a l i a e r 20 transaction to sell, exchange or transfer an additional credit a t m m 21 shall notify the department of the transaction within ten days d r e 22 of the sale, exchange or transfer.
and (3) greater than or equal to four million dollars ($4,000,000) and less than or equal to five million dollars ($5,000,000), one-third of the excess additional credit shall be refunded to the taxpayer.
c e s k 23 [B.] D.
D.
A taxpayer that has applied for and been e a n b 24 granted approval for an additional credit by the department u [ pursuant to the Technology Jobs and Research and Development .233339.1 - 9 - HCEDC/HB 27 Tax Credit Act may claim the amount of the approved additional credit against the taxpayer's income tax or corporate income tax liability.
Any amount of approved additional credit not claimed against the taxpayer's income tax or corporate income tax due for a taxable year or refunded to the taxpayer may be claimed in subsequent reporting periods for a period of up to [three] ten years from the date of the original claim.
Except as provided in Subsection [C] E of this section, no taxpayer may claim an amount of approved additional credit for a taxable year in which the additional credit is being claimed that exceeds the amount of the taxpayer's income tax or corporate income tax due for that taxable year.
E.
[C.] E.
Married individuals filing separate returns for e t 17 a taxable year for which they could have filed a joint return w l n d 18 may each claim only one-half of the additional credit that = = 19 a l would have been claimed on a joint return." i a e r 20 SECTION 3.
If a taxpayer is a qualified research and development small business and the amount of approved additional credit for the taxable year in which the additional credit is being claimed exceeds the taxpayer's income tax liability or corporate income tax liability, the excess shall be refunded to the taxpayer pursuant to Paragraphs (1) through (3) of this subsection.
A new section of the Technology Jobs and a t m m 21 Research and Development Tax Credit Act, Section 7-9F-9.2 NMSA d r e 22 1978, is enacted to read:
If the taxpayer's total qualified expenditures for the taxable year for which the claim is made is:
c e s k 23 "7-9F-9.2.
e t 17 (1) less than three million dollars w l n d 18 ($3,000,000), the excess additional credit shall be refunded to = = 19 the taxpayer;
[NEW MATERIAL] TRANSFERABILITY OF e a n b 24 CREDITS.--The tax credits provided pursuant to the Technology u [ Jobs and Research and Development Tax Credit Act may be sold, .232299.2 - 8 - exchanged or otherwise transferred to another taxpayer for the full value of the credit.
a l i a e r 20 (2) greater than or equal to three million a t m m 21 dollars ($3,000,000) and less than four million dollars d r e 22 ($4,000,000), two-thirds of the excess additional credit shall c e s k 23 be refunded to the taxpayer;
The parties to such a transaction shall notify the department of the sale, exchange or transfer within ten days of the sale, exchange or transfer." SECTION 4.
and e a n b 24 (3) greater than or equal to four million u [ dollars ($4,000,000) and less than or equal to five million .233339.1 - 10 - HCEDC/HB 27 dollars ($5,000,000), one-third of the excess additional credit shall be refunded to the taxpayer.
[D.] F.
Any amount of approved additional credit not claimed against the taxpayer's income tax or corporate income tax due for a taxable year or refunded to the taxpayer may be claimed in subsequent reporting periods for a period of up to [three] seven years from the date of the original claim.
[E.] G.
Married individuals filing separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the additional credit that would have been claimed on a joint return." SECTION 4.
- 9 - 9 11 13 15 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .232299.2
- 11 - 16 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .233339.1
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Action History

  1. action postponed indefinitely

  2. DO NOT PASS, replaced with committee substitute

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

  4. Sent to House Pre-file

Sponsors

Sponsorship breakdown

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5 sponsors · 0 co-sponsors · 107 not signed on

Sponsors (5)

Co-sponsors (0)

None.

Not signed on (107)

107 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.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation technology
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 27?
HB 27 is sponsored by Nicole Tobiassen (Republican), Linda Serrato (Democrat), Michael Padilla (Democrat), Meredith A. Dixon (Democrat), and Joshua N. Hernandez (Republican).
What is the current status of HB 27?
This bill is in committee in the House. Introduced January 02, 2026. It must pass committee before a floor vote.
Where can I track HB 27?
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