reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-4 - Exemptions.

No income tax shall be imposed upon:
A. a trust organized or created in the United States and forming part of a stock bonus, pension or profit-sharing plan of an employer for the exclusive benefit of his employees or their beneficiaries, which trust is exempt from taxation under the provisions of the Internal Revenue Code; or
B. religious, educational, benevolent or other organizations not organized for profit which are exempt from income taxation under the Internal Revenue Code except to the extent that such income is subject to federal income taxation as "unrelated business income" under the Internal Revenue Code.
History:
1953 Comp., § 72-15A-4, enacted by Laws 1965, ch. 202, § 4; 1969, ch. 152, § 2; 1971, ch. 20, § 2; 1981, ch. 37, § 15.
ANNOTATIONS
Cross references.
— For exemption of severance tax bonds from taxation,
see
7-27-24 NMSA 1978.
For exemption of mortgage finance authority and bonds and notes thereof,
see
58-18-18 NMSA 1978.
For the Internal Revenue Code,
see
26 U.S.C. § 1 et seq.
Tax burden should fall with uniformity and equality
upon the class of persons sought to be taxed.
N.M. Elec. Serv. Co. v. Jones
, 1969-NMCA-111, 80 N.M. 791, 461 P.2d 924.
Exemptions strictly construed.
— In pursuance of the beneficent public policy which favors equality in the distribution of the burden of government, all exemptions of persons or property from taxation are to be construed strictly against the exemption; the intention to create exemptions must affirmatively appear and cannot be raised by implication.
N.M. Elec. Serv. Co. v. Jones
, 1969-NMCA-111, 80 N.M. 791, 461 P.2d 924.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 362 to 391, 475 to 482.
Construction of exemption of religious body or society from taxation or special assessment, 17 A.L.R. 1027, 168 A.L.R. 1222.
Exemption of charitable organization from taxation or special assessment, 34 A.L.R. 634, 62 A.L.R. 328, 108 A.L.R. 284.
Extent of area within tax exemption extended to property used for educational, religious, or charitable purposes, 134 A.L.R. 1176.
Exemption of college fraternity house or dormitory from taxation, 66 A.L.R.2d 904.
When is corporation, community chest, fund, foundation or club "organized and operated exclusively" for charitable or other exempt purposes under Internal Revenue Code, 69 A.L.R.2d 871.
Qualification of health care entities for federal tax exemption as charitable organization under 26 USCS § 501(c)(3), 134 A.L.R. Fed. 395.
84 C.J.S. Taxation §§ 321 to 393; 85 C.J.S. Taxation §§ 1715 to 1719, 1736 to 1737.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 49, § 18 repealed 7-2-5 NMSA 1978, as enacted by Laws 1967, ch. 70, § 1, relating to exemptions for annuities to retired federal civil service employees, effective May 16, 1990. For provisions of former section,
see
the 1989 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.1 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 49, § 18 repealed 7-2-5.1 NMSA 1978, as enacted by Laws 1979, ch. 342, § 1, relating to exemptions for military retirement pay, effective May 16, 1990. For provisions of former section,
see
the 1989 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.2 - Exemption; income of persons sixty-five and older or blind.

Any individual sixty-five years of age or older or who, for federal income tax purposes, is blind may claim an exemption in an amount specified in Subsections A through C of this section not to exceed eight thousand dollars ($8,000) of income includable except for this exemption in net income. Individuals having income both within and without this state shall apportion this exemption in accordance with regulations of the secretary:
A. for married individuals filing separate returns, for any taxable year beginning on or after January 1, 1987:
If adjusted
gross income is:
The maximum amount of
exemption allowable under
this section shall be:
Not over $15,000
$8,000
Over $15,000 but not over $16,500
$7,000
Over $16,500 but not over $18,000
$6,000
Over $18,000 but not over $19,500
$5,000
Over $19,500 but not over $21,000
$4,000
Over $21,000 but not over $22,500
$3,000
Over $22,500 but not over $24,000
$2,000
Over $24,000 but not over $25,500
$1,000
Over $25,500
0.
B. for heads of household, surviving spouses and married individuals filing joint returns, for any taxable year beginning on or after January 1, 1987:
If adjusted
gross income is:
The maximum amount of
exemption allowable under
this section shall be:
Not over $30,000
$8,000
Over $30,000 but not over $33,000
$7,000
Over $33,000 but not over $36,000
$6,000
Over $36,000 but not over $39,000
$5,000
Over $39,000 but not over $42,000
$4,000
Over $42,000 but not over $45,000
$3,000
Over $45,000 but not over $48,000
$2,000
Over $48,000 but not over $51,000
$1,000
Over $51,000
0.
C. for single individuals, for any taxable year beginning on or after January 1, 1987:
If adjusted
gross income is:
The maximum amount of
exemption allowable under
this section shall be:
Not over $18,000
$8,000
Over $18,000 but not over $19,500
$7,000
Over $19,500 but not over $21,000
$6,000
Over $21,000 but not over $22,500
$5,000
Over $22,500 but not over $24,000
$4,000
Over $24,000 but not over $25,500
$3,000
Over $25,500 but not over $27,000
$2,000
Over $27,000 but not over $28,500
$1,000
Over $28,500
0.
History:
1978 Comp., § 7-2-5.2, enacted by Laws 1985, ch. 114, § 1; 1987, ch. 264, § 6.
ANNOTATIONS
Applicability.
— Laws 1987, ch. 264, § 27 made the provisions of Sections 6 and 7 and Subsection B of Section 25 of the act applicable to taxable years beginning on or after January 1, 1987.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 334, 464.
85 C.J.S. Taxation §§ 1736 and 1737.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.3 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 49, § 18 repealed 7-2-5.3 NMSA 1978, as amended by Laws 1987, ch. 277, § 2, relating to exemption for social security and railroad retirement benefits, effective May 16, 1990. For provisions of former section,
see
the 1989 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.4 - Repealed.

History:
1978 Comp., § 7-2-5.4, enacted by Laws 1988, ch. 59, § 1; 1995, ch. 11, § 1; 2007, ch. 45, § 14.
ANNOTATIONS
Repeals.
— Laws 2007, ch. 45, § 14 repealed 7-2-5.4 NMSA 1978, being Laws 1988, ch. 59, § 1, relating to tax exemptions for an adopted special needs child, effective for tax years beginning on or after January 1, 2007. For provisions of former section,
see
the 2006 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.5 - Exemption; earnings by Indians, their Indian spouses and Indian dependents on Indian lands.

Income earned by a member of a New Mexico federally recognized Indian nation, tribe, band or pueblo, the member's spouse or dependent, who is a member of a New Mexico federally recognized Indian nation, tribe, band or pueblo, is exempt from state income tax if the income is earned from work performed within and the member, spouse or dependent is domiciled within the boundaries of the Indian member's or the spouse's reservation or pueblo grant or within the boundaries of land defined as "Indian country" pursuant to 18 U.S.C. Section 1151, as that section may be amended or renumbered, for that nation, tribe, band or pueblo.
History:
Laws 1995, ch. 42, § 1; 2023, ch. 85, § 7.
ANNOTATIONS
The 2023 amendment,
effective July 1, 2023, clarified language related to the exemption of income by members of New Mexico federally recognized nations, tribes, bands, or pueblos; after "within the boundaries of", deleted "lands held in trust by the United States for the benefit of the member or spouse or his nation, tribe, band or pueblo, subject to restriction against alienation imposed by the United States" and added "land defined as 'Indian country' pursuant to 18 U.S.C. Section 1151, as that section may be amended or renumbered, for that nation, tribe, band or pueblo".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.6 - Exemption; medical care savings accounts.

Except as provided in Section 6 [59A-23D-6 NMSA 1978] of this act, employer and employee contributions to medical care savings accounts established pursuant to the Medical Care Savings Account Act [Chapter 59A, Article 23D NMSA 1978], the interest earned on those accounts and money reimbursed to an employee for eligible medical expenses from those accounts or money advanced to the employee by the employer for eligible medical expenses pursuant to that act are exempt from taxation.
History:
Laws 1995, ch. 93, § 8.
ANNOTATIONS
Effective dates.
— Laws 1995, ch. 93 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 16, 1995, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.7 - Exemption; income of individuals one hundred years of age or older.

The income of an individual who is a natural person, who is one hundred years of age or older and who is not a dependent of another individual is exempt from state income tax.
History:
Laws 2002, ch. 58, § 1.
ANNOTATIONS
Effective dates.
— Laws 2002, ch. 58 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective May 15, 2002, 90 days after adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.9 - Exemption; unreimbursed or uncompensated medical care expenses of individuals sixty-five years of age or older.

A. Any individual sixty-five years of age or older may claim an additional exemption from income includable, except for this exemption, in net income in an amount equal to three thousand dollars ($3,000) for medical care expenses paid by the individual for that individual or for the individual's spouse or dependent during the taxable year if those medical care expenses exceed twenty-eight thousand dollars ($28,000) and if the medical care expenses are not reimbursed or compensated for by insurance or otherwise.
B. As used in this section:
(1) "dependent" means "dependent" as defined in Section 152 of the Internal Revenue Code;
(2) "health care facility" means a hospital, outpatient facility, diagnostic and treatment center, rehabilitation center, freestanding hospice or other similar facility at which medical care is provided;
(3) "medical care" means the diagnosis, cure, mitigation, treatment or prevention of disease or for the purpose of affecting any structure or function of the body;
(4) "medical care expenses" means amounts paid for:
(a) the diagnosis, cure, mitigation, treatment or prevention of disease or for the purpose of affecting any structure or function of the body if provided by a physician or in a health care facility;
(b) prescribed drugs or insulin;
(c) qualified long-term care services as defined in Section 7702B(c) of the Internal Revenue Code;
(d) insurance covering medical care, including amounts paid as premiums under Part B of Title 18 of the Social Security Act or for a qualified long-term care insurance contract defined in Section 7702B(b) of the Internal Revenue Code, if the insurance or other amount is paid from income included in the taxpayer's adjusted gross income for the taxable year;
(e) specialized treatment or the use of special therapeutic devices if the treatment or device is prescribed by a physician and the patient can show that the expense was incurred primarily for the prevention or alleviation of a physical or mental defect or illness; and
(f) care in an institution other than a hospital, such as a sanitarium or rest home, if the principal reason for the presence of the person in the institution is to receive the medical care available; provided that if the meals and lodging are furnished as a necessary part of such care, the cost of the meals and lodging are "medical care expenses";
(5) "physician" means a medical doctor, osteopathic physician, dentist, podiatrist, chiropractic physician or psychologist licensed or certified to practice in New Mexico; and
(6) "prescribed drug" means a drug or biological that requires a prescription of a physician for its use by an individual.
History:
Laws 2005, ch. 104, § 6.
ANNOTATIONS
Effective dates.
— Laws 2005, ch. 104, § 29, made Laws 2005, ch. 104, § 6 effective January 1, 2006.
Applicability.
— Laws 2005, ch. 104, § 29 provided that Laws 2005, ch. 104, § 6 applied to taxable years beginning on or after January 1, 2007.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.10 - Exemption; New Mexico national guard member premiums paid for group life insurance.

An individual who receives reimbursement from the service members' life insurance reimbursement fund may claim an exemption in the amount of that reimbursement, from income includable, except for this exemption, in net income.
History:
Laws 2006, ch. 50, § 1.
ANNOTATIONS
Effective dates.
— Laws 2006, ch. 50, § 3 made Laws 2006, ch. 50, § 1 effective March 2, 2006.
Applicability.
— Laws 2006, ch. 50, § 2, effective March 2, 2006, provided that Laws 2006, ch. 50, § 1 applies to taxable years beginning on or after January 1, 2005.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.11 - Exemption; armed forces salaries.

A salary paid by the United States to a taxpayer for active duty service in the armed forces of the United States is exempt from state income taxation.
History:
Laws 2007, ch. 45, § 11.
ANNOTATIONS
Effective dates.
— Laws 2007, ch. 45, § 11, contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 15, 2007, 90 days after the adjournment of the legislature.
Applicability.
— Laws 2007, ch. 45, § 15 provided that Laws 2007, ch. 45, §§ 7 through 11 apply to taxable years beginning on or after January 1, 2007.
Service in the United States public health service is not service in the armed forces.
— Where taxpayer claimed a tax exemption for wages earned in the service of the United States public health service (USPHS) pursuant to this section, the hearing officer did not err in concluding that taxpayer was not in the "armed forces" for the relevant tax years and therefore did not qualify for the armed forces salaries exemption, because commissioned officers of the USPHS are not members of the "armed forces" as that term is defined in New Mexico state or federal statutes, and regulations defining "armed forces" do not modify this section of law, but were enacted to implement and enforce the New Mexico Income Tax Act.
Hammack v. Taxation & Revenue Dep't
, 2017-NMCA-086, cert. denied.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.12 - Repealed.

History:
Laws 2022, ch. 46, § 1; repealed by Laws 2023, ch. 159, § 4.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 159, § 4 repealed 7-2-5.12 NMSA 1978, as enacted by Laws 2022, ch. 46, § 1, relating to exemption, income subject to entity-level tax, effective June 16, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.13 - Exemption; armed forces retirement pay.

A. An individual who is an armed forces retiree may claim an exemption in the following amounts of military retirement pay includable, except for this exemption, in net income:
(1) for taxable year 2022, ten thousand dollars ($10,000);
(2) for taxable year 2023, twenty thousand dollars ($20,000); and
(3) for taxable years 2024 through 2026, thirty thousand dollars ($30,000).
B. As used in this section, "armed forces retiree" means a former member of the armed forces of the United States who has qualified by years of service or disability to separate from military service with lifetime benefits.
History:
Laws 2022, ch. 47, § 6.
ANNOTATIONS
Effective dates.
— Laws 2022, ch. 47, § 6 was effective May 18, 2022, 90 days after adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-5.14 - Exemption; social security income.

An individual may claim an exemption in an amount equal to the amount included in adjusted gross income pursuant to Section 86 of the Internal Revenue Code, as that section may be amended or renumbered, of income includable except for this exemption in net income; provided that the individual's adjusted gross income shall not exceed:
A. seventy-five thousand dollars ($75,000) for married individuals filing separate returns;
B. one hundred fifty thousand dollars ($150,000) for heads of household, surviving spouses and married individuals filing joint returns; and
C. one hundred thousand dollars ($100,000) for single individuals.
History:
Laws 2022, ch. 47, § 7.
ANNOTATIONS
Effective dates.
— Laws 2022, ch. 47, § 7 was effective May 18, 2022, 90 days after adjournment of the legislature.
Applicability.
— Laws 2022, ch. 47, § 16 provided that the provisions of Laws 2022, ch. 47, § 7 apply to taxable years beginning on or after January 1, 2022.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-6 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 49, § 18 repealed 7-2-6 NMSA 1978, as enacted by Laws 1977, ch. 300, § 1, relating to exemptions for annuities paid to retired judges of the district court, court of appeals judges, and supreme court justices, effective May 16, 1990. For provisions of former section,
see
the 1989 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-7 - Individual income tax rates.

The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning on or after January 1, 2021:
A. For married individuals filing separate returns:
If the taxable income is:
The tax shall be:
Not over $4,000
1.7% of taxable income
Over $4,000 but not over $8,000
$68.00 plus 3.2% of excess over $4,000
Over $8,000 but not over $12,000
$196 plus 4.7% of excess over $8,000
Over $12,000 but not over $157,500
$384 plus 4.9% of excess over $12,000
Over $157,500
$7,513.50 plus 5.9% of excess over $157,500.
B. For heads of household, surviving spouses and married individuals filing joint returns:
If the taxable income is:
The tax shall be:
Not over $8,000
1.7% of taxable income
Over $8,000 but not over $16,000
$136 plus 3.2% of excess over $8,000
Over $16,000 but not over $24,000
$392 plus 4.7% of excess over $16,000
Over $24,000 but not over $315,000
$768 plus 4.9% of excess over $24,000
Over $315,000
$15,027 plus 5.9% of excess over $315,000.
C. For single individuals and for estates and trusts:
If the taxable income is:
The tax shall be:
Not over $5,500
1.7% of taxable income
Over $5,500 but not over $11,000
$93.50 plus 3.2% of excess over $5,500
Over $11,000 but not over $16,000
$269.50 plus 4.7% of excess over $11,000
Over $16,000 but not over $210,000
$504.50 plus 4.9% of excess over $16,000
Over $210,000
$10,010.50 plus 5.9% of excess over $210,000.
D. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income.
History:
Laws 2005, ch. 104, § 4; 2019, ch. 270, § 12.
ANNOTATIONS
Compiler's notes.
— Pursuant to Laws 2019, ch. 270, § 61, the effective date of Laws 2019, ch. 270, § 12 is December 18, 2020. On December 18, 2020, the secretary of the New Mexico department of finance and administration certified to the New Mexico compilation commission and the director of the legislative council service that fiscal year 2020 recurring general fund revenues are less than five percent above fiscal year 2019 recurring general fund revenues.
The 2019 amendment,
effective December 18, 2020, revised individual income tax rates and individual income tax brackets; in Subsection A, after "If the taxable income is", deleted the remainder of the subsection; and deleted former Subsections B and C, and added new Subsections B and C.
Applicability.
— Laws 2019, ch. 270, § 59 provided that the provisions of Laws 2019, ch. 270, § 12 apply to taxable years beginning on or after January 1, 2021.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-7.1 - Tax tables.

In lieu of the tax rate computations required in Section 7-2-7 NMSA 1978, the secretary may adopt regulations requiring taxpayers to pay taxes in accordance with tax rate tables. The tax tables may be established either by regulation or by instruction but shall be computed substantially on the basis of the rates prescribed in Section 7-2-7 NMSA 1978. The secretary may by regulation or instruction exclude from the application of this section taxpayers having net incomes in excess of an amount to be determined by the secretary and may exclude taxpayers in any net-income class having more exemptions than the number of exemptions specified by the secretary for that category.
History:
1978 Comp., § 7-2-7.1, enacted by Laws 1980, ch. 102, § 1; 1981, ch. 37, § 18; 1990, ch. 49, § 3; 1995, ch. 11, § 2.
ANNOTATIONS
The 1995 amendment,
effective June 16, 1995, inserted "may be established either by regulation or by instruction but" in the second sentence and "or instruction" near the beginning of the third sentence.
The 1990 amendment,
effective May 16, 1990, substituted "secretary" for "director" in the first and third sentences and for "secretary of taxation and revenue" near the middle and end of the third sentence.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-7.3 - Exemption; 2005 taxable year rebate. (Effective for 2005 tax year.)

The tax rebate made for the 2005 taxable year pursuant to this 2005 act is exempt from state income tax.
History:
Laws 2005 (1st S.S.), ch. 3, § 4.
ANNOTATIONS
Effective dates.
— Laws 2005 (1st S.S.), ch. 3, § 8 made Laws 2005 (1st S.S.), ch. 3, § 4 effective October 28, 2005.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-7.4 - 2020 income tax rebate.

A. A resident who is not a dependent of another individual and has received a working families tax credit for which the taxpayer was eligible to claim against the resident's income tax liability for taxable year 2020 may be eligible for a tax rebate of six hundred dollars ($600); provided that the resident had the following adjusted gross income for taxable year 2020:
(1) for single individuals, an adjusted gross income of thirty-one thousand two hundred dollars ($31,200) or less; and
(2) for heads of household, surviving spouses and married individuals filing joint returns, an adjusted gross income of thirty-nine thousand dollars ($39,000) or less.
B. The rebate provided by this section may be deducted from the taxpayer's New Mexico income tax liability.
C. If the amount of rebate exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.
D. The department may require a taxpayer to claim the rebate provided by this section on forms and in a manner required by the department.
E. The rebate provided by this section shall not be allowed after June 30, 2022.
History:
Laws 2021, ch. 4, § 2.
ANNOTATIONS
Emergency clauses.
— Laws 2021, ch. 4, § 6 contained an emergency clause and was approved March 3, 2021.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-7.6 - 2021 income tax rebate.

A. A resident who is not a dependent of another individual is eligible for a tax rebate of:
(1) five hundred dollars ($500) for heads of household, surviving spouses and married individuals filing joint returns with adjusted gross income of less than one hundred fifty thousand dollars ($150,000); and
(2) two hundred fifty dollars ($250) for single individuals and married individuals filing separate returns with adjusted gross income of less than seventy-five thousand dollars ($75,000).
B. The rebate provided by this section may be deducted from the taxpayer's New Mexico income tax liability for taxable year 2021.
C. If the amount of rebate exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.
D. The department may require a taxpayer to claim the rebate provided by this section on forms and in a manner required by the department.
E. The rebate provided by this section shall not be allowed after June 30, 2023.
History:
Laws 2022, ch. 47, § 4.
ANNOTATIONS
Effective dates.
— Laws 2022, ch. 47, § 17 made Laws 2022, ch. 47, § 4 effective July 1, 2022.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-7.7 - Additional 2021 income tax rebates.

A. A resident who files an individual New Mexico income tax return for taxable year 2021 and who is not a dependent of another individual is eligible for a tax rebate pursuant to this section in the following amounts:
(1) one thousand dollars ($1,000) for heads of household, surviving spouses and married individuals filing joint returns; and
(2) five hundred dollars ($500) for single individuals and married individuals filing separate returns.
B. The rebates shall be made as soon as practicable after a return is received; provided that a rebate shall not be allowed for a return filed after May 31, 2024.
C. The rebates provided by this section may be deducted from the taxpayer's New Mexico income tax liability for taxable year 2021. If the amount of rebate exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.
D. The department may require a taxpayer to claim a rebate provided by this section on forms and in a manner required by the department.
History:
Laws 2023, ch. 211, § 11.
ANNOTATIONS
Effective dates.
— Laws 2023, ch. 211, § 44 made Laws 2023, ch. 211, § 11 effective April 1, 2023. However, Laws 2023, ch. 211 did not contain an emergency clause provision, and therefore, cannot have an effective date earlier than 90 days after the end of the legislative session. Laws 2023, ch. 211, § 11 is effective June 16, 2023.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-8 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1981, ch. 37, § 96, repealed 7-2-8 NMSA 1978, as enacted by Laws 1965, ch. 202, § 6, relating to corporate income tax rates, effective June 19, 1981.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-9 - Tax computation; alternative method.

For those taxpayers who do not compute an amount upon which the federal income tax is calculated or who do not compute their federal income tax payable for the taxable year, the secretary shall prescribe such regulations or instructions as the secretary may deem necessary to enable them to compute their state income tax due.
History:
1953 Comp., § 72-15A-7, enacted by Laws 1965, ch. 202, § 7; 1981, ch. 37, § 19; 1990, ch. 49, § 4.
ANNOTATIONS
The 1990 amendment,
effective May 16, 1990, substituted "secretary shall" and "the secretary may deem" for "director shall" and "he may deem".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-10 - Income taxes applied to individuals on federal areas.

To the extent permitted by law, no individual shall be relieved from liability for income tax by reason of his residing within a federal area or receiving income from transactions occurring or work or services performed in such area.
History:
1953 Comp., § 72-15A-8, enacted by Laws 1965, ch. 202, § 8; 1981, ch. 37, § 20.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 474, 483, 493.
85 C.J.S. Taxation §§ 1693 et seq.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-12.1 - Limitation on claiming of credits and tax rebates.

A. Except as provided otherwise in this section, a credit or tax rebate provided in the Income Tax Act that is claimed shall be disallowed if the claim for the credit or tax rebate was first made after the end of the third calendar year following the calendar year in which the return upon which the credit or tax rebate was first claimable was initially due.
B. Subsection A of this section does not apply to:
(1) the credit authorized by Section 7-2-13 NMSA 1978 for income taxes paid another state; or
(2) the credit authorized by Section 7-2-19 NMSA 1978 [repealed] for income taxes paid another state.
History:
1978 Comp., § 7-2-12.1, enacted by Laws 1990, ch. 23, § 1.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law. Section 7-2-19 NMSA 1978, referred to in Paragraph B(2), was repealed by Laws 1990, ch. 49, § 19, effective May 16, 1990.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-14.1 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1993, ch. 356, § 1 repealed 7-2-14.1 NMSA 1978, as enacted by Laws 1987, ch. 264 § 8, relating to a tax rebate for gross receipts tax on food and medical expenses, effective July 1, 1993. For provisions of former section,
see
the 1992 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-14.2 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1987, ch. 264, § 25B repealed 7-2-14.2 NMSA 1978, as enacted by Laws 1979, ch. 70, § 2, relating to withholding instructions, effective June 19, 1987.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-14.5 - Imposition of tax; limitations.

A. If, as a result of an election held on the question of imposing a property tax to fund the property tax rebate for low-income taxpayers provided in the Income Tax Act, a majority of the qualified electors voting on the question votes in favor of the imposition of the tax, the tax rate shall be certified by the department of finance and administration for any year in which the tax is imposed. The rate certified shall be the rate specified in the authorizing resolution or any lower rate required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978. The tax shall be imposed at the rate certified unless the board of county commissioners determines that the tax imposition be decreased or not made pursuant to Subsection B of this section. The revenue produced by the tax shall be placed in a separate fund in the county treasury and is pledged solely for the payment of the income tax revenue reduction resulting from the implementation of the property tax rebate for low-income taxpayers.
B. A tax imposed pursuant to Subsection A of this section shall be imposed for one, two, three, four or five years commencing with the property tax year in which the tax rate is first imposed. The board of county commissioners may direct that the rate of imposition of the tax be decreased for any year if, in its judgment, imposition of the total rate is not necessary for such year. The board of county commissioners shall direct that the imposition not be made for any property tax year for which the property tax rebate for low-income taxpayers is not provided or for any year in which the county has imposed a property transfer tax pursuant to the Transfer Tax Act.
History:
Laws 1994, ch. 111, § 3.
ANNOTATIONS
Effective dates.
— Laws 1994, ch. 111, § 6 made Laws 1994, ch. 111, § 3 effective on July 1, 1994.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-15 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1987, ch. 264, § 25B repealed 7-2-15 NMSA 1978, as enacted by Laws 1975, ch. 207, § 1, relating to rebate for gross receipts tax on medical and dental expenses, effective June 19, 1987.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-16 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 49, § 20 repealed 7-2-16 NMSA 1978, as enacted by Laws 1986, ch. 110, § 1, relating to credits for solar or wind energy equipment installation effective May 16, 1990. For provisions of former section,
see
the 1989 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-16.1 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 49, § 20 repealed 7-2-16.1 NMSA 1978, as enacted by Laws 1981, ch. 180, § 2, relating to credits for solar capital investments, effective May 16, 1990. For provisions of former section,
see
the 1989 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-17 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 49, § 20 repealed 7-2-17 NMSA 1978, as enacted by Laws 1977, ch. 114, § 1, relating to credits for solar or wind energy equipment installation, effective May 16, 1990. For provisions of former section,
see
the 1989 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-17.1 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 49, § 21 repealed 7-2-17.1 NMSA 1978, as enacted by Laws 1983, ch. 212, § 1, relating to tax credits for geothermal capital investments, effective January 1, 1991. For provisions of former section,
see
the 1989 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.3 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1998, ch. 95, § 5, effective January 1, 1998, and Laws 1998, ch. 99, § 3, effective May 20, 1998, both repealed 7-2-18.3 NMSA 1978, as enacted by Laws 1994, ch. 5, § 17. relating to credit for prescription drugs effective for taxable years beginning on or after January 1, 1999. For provisions of former section,
see
the 1997 NMSA 1978 on
NMOneSource.com
. The section was set out as repealed by Laws 1998, ch. 99, § 3.
See
12-1-8 NMSA 1978.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.4 - Repealed.

History:
Laws 1994, ch. 115, § 1; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2-18.4 NMSA 1978, as enacted by Laws 1994, ch. 115, § 1, relating to qualified business facility rehabilitation credit, income tax credit, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.5 - Repealed.

History:
Laws 1998, ch. 97, § 2; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2-18.5 NMSA 1978, as enacted by Laws 1998, ch. 97, § 2, relating to welfare-to-work tax credit, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.6 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1999, ch. 217, § 4 repealed 7-2-18.6, as enacted by Laws 1999, ch. 217, § 1, relating to a job mentorship tax credit, effective January 1, 2002. For provisions of former section,
see
the 1998 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.7 - Tax rebate of property tax paid on property eligible for disabled veteran exemption; refund; limitation.

A. Any resident who files an individual New Mexico income tax return and paid property tax for the 1999 property tax year on property eligible for the property tax exemption authorized by Article 8, Section 15 of the constitution of New Mexico may claim a tax rebate for the amount of property tax paid.
B. The tax rebate provided for in this section may be deducted from the taxpayer's New Mexico income tax liability for taxable year 2000. If the tax rebate exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.
C. The rebate provided for in this section may be claimed only on a return filed for taxable year 2000.
D. A husband and wife who file separate returns for taxable year 2000 and could have filed a joint return for taxable year 2000 may each claim only one-half of the tax rebate that would have been allowed on the joint return.
History:
Laws 2000, ch. 64, § 1 and Laws 2000, ch. 78, § 1.
ANNOTATIONS
Effective dates.
— Laws 2000, ch. 78 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective on May 17, 2000, 90 days after adjournment of the legislature.
Compiler's notes.
— Laws 2000, ch. 64, § 1 and Laws 2000, ch. 78, § 1, both effective May 17, 2000, enacted identical sections. The section was set out as enacted by Laws 2000, ch. 78, § 1.
See
12-1-8 NMSA 1978.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.8 - Repealed.

History:
Laws 2001, ch. 73, § 1; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2-18.8 NMSA 1978, as enacted by Laws 2001, ch. 73, § 1, relating to credit, certain electronic equipment, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.9 - Repealed.

History:
Laws 2002, ch. 91, § 1.
ANNOTATIONS
Repeals.
— Laws 2002, ch. 91, § 3 repealed 7-2-18.9 NMSA 1978, as enacted by Laws 2002, ch. 91, § 1, relating to the solar market development tax credit, effective January 1, 2006. For provisions of former section,
see
the 2001 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.12 - Repealed.

ANNOTATIONS
Repeals.
— Laws 2005, ch. 91, § 2 repealed 7-2-18.12 NMSA 1978, as enacted by Laws 2004, ch. 99, § 1, relating to income tax credit for payments to care facilities, effective June 17, 2005. For provisions of former section,
see
the 2004 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.16 - Credit; special needs adopted child tax credit; created; qualifications; duration of credit.

A. A taxpayer who files an individual New Mexico income tax return, who is not a dependent of another individual and who adopts a special needs child on or after January 1, 2007 or has adopted a special needs child prior to January 1, 2007, may claim a credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act. The credit authorized pursuant to this section may be referred to as the "special needs adopted child tax credit".
B. A taxpayer may claim and the department may allow a special needs adopted child tax credit in the amount of one thousand dollars ($1,000) to be claimed against the taxpayer's tax liability for the taxable year imposed pursuant to the Income Tax Act.
C. A taxpayer may claim a special needs adopted child tax credit for each year that the child may be claimed as a dependent for federal taxation purposes by the taxpayer.
D. If the amount of the special needs adopted child tax credit due to the taxpayer exceeds the taxpayer's individual income tax liability, the excess shall be refunded.
E. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the special needs adopted child tax credit provided in this section that would have been allowed on a joint return.
F. As used in this section, "special needs adopted child" means an individual who may be over eighteen years of age and who is certified by the children, youth and families department or a licensed child placement agency as meeting the definition of a "difficult to place child" pursuant to the Adoption Act [Chapter 32A, Article 5 NMSA 1978]; provided, however, if the classification as a "difficult to place child" is based on a physical or mental impairment or an emotional disturbance the physical or mental impairment or emotional disturbance shall be at least moderately disabling.
History:
Laws 2007, ch. 45, § 10.
ANNOTATIONS
Effective dates.
— Laws 2007, ch. 45, § 10, contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 15, 2007, 90 days after the adjournment of the legislature.
Applicability.
— Laws 2007, ch. 45, § 15 provided that Laws 2007, ch. 45, §10 apply to taxable years beginning on or after January 1, 2007.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.20 - Repealed.

ANNOTATIONS
Repeals.
— Laws 2007, ch. 204, § 20 repealed 7-2-18.20 NMSA 1978, as enacted by Laws 2007, ch. 204, § 5, relating to a tax credit for agricultural water conservation expenses, effective January 1, 2013. For provisions of former section,
see
the 2012 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.21 - Repealed.

History:
Laws 2007, ch. 204, § 7; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2-18.21 NMSA 1978, as enacted by Laws 2007, ch. 204, § 7, relating to credit, blended biodiesel fuel, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.23 - Refundable credit; 2007 taxable year.

A. Except as otherwise provided in Subsection B of this section, a taxpayer who for the 2007 taxable year files a New Mexico income tax return, is a full-year or first-year resident of New Mexico and is not a trust, estate or a dependent of another taxpayer is allowed a credit in the amount determined under Subsection C of this section. The credit may be allowed even though the taxpayer has no income taxable under the Income Tax Act for the 2007 taxable year.
B. A claim for the refundable tax credit provided in this section is not allowed for a resident who was an inmate of a public institution for more than six months during the 2007 taxable year.
C. The tax credit allowed in this section shall be in the amount determined from the following tables for:
(1) married taxpayers filing jointly:
Adjusted Gross Income
Credit Amount
for Taxpayer
and Spouse
Additional Credit
Amount for Each
Dependent
Over
Not Over
0
$30,000
$100
$50.00
$30,000
$50,000
$ 80.00
$40.00
$50,000
$70,000
$ 50.00
$25.00
$70,000
$ 0.00
$ 0.00; or
(2) taxpayers filing as single, head of household, married filing separately or as a surviving spouse:
Adjusted Gross Income
Credit Amount
for Taxpayer
Additional
Credit Amount
for Each
Dependent
Over
Not Over
0
$30,000
$50.00
$50.00
$30,000
$50,000
$40.00
$40.00
$50,000
$70,000
$25.00
$25.00
$70,000
$ 0.00
$ 0.00.
D. The tax credit allowed in this section may be credited by the department against the taxpayer's New Mexico income tax liability. If the taxpayer is liable for interest and penalties on the taxpayer's income tax liability for the 2007 taxable year prior to the effective date of this section, the amount of interest and penalties shall not be recomputed due to the credit provided by this section but may be satisfied by applying the credit to the penalty or interest due. Notwithstanding the provisions of Section 7-1-68 NMSA 1978, interest in the amount established by Subsection B of Section 7-1-68 NMSA 1978 shall only be allowed and paid on the amount to be refunded under Subsection E of this section if not refunded or credited within one hundred twenty days after the effective date of this section or the applicable period established in Subsection D of Section 7-1-68 NMSA 1978, whichever is later.
E. If the tax credit exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.
F. For purposes of this section, "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code.
History:
Laws 2008 (2nd S.S.), ch. 3, § 1.
ANNOTATIONS
Cross references.
— For Section 152 of the Internal Revenue Code,
see
26 U.S.C. § 152.
Emergency clause.
— Laws 2008, ch. 3, § 4 contained an emergency clause and was approved on August 25, 2008.
Applicability.
— Laws 2008, ch. 3, § 3 provided that the provisions of Laws 2008, ch. 3, § 1 apply to taxable years beginning between January 1, 2007 and December 31, 2007.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.25 - Repealed.

History:
Laws 2009, ch. 279, § 1; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2-18.25 NMSA 1978, as enacted by Laws 2009, ch. 279, § 1, relating to advanced energy income tax credit, effective July 1, 2023. For provisions of former section, see the 2022 NMSA 1978 on NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.27 - Repealed.

History:
Laws 2011, ch. 89, § 1; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2-18.27 NMSA 1978, as enacted by Laws 2011, ch. 89, § 1, relating to credit, physician participation in cancer treatment clinical trials, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2 - Income Tax General Provisions › Section 7-2-18.28 - Repealed.

History:
Laws 2012, ch. 55, § 1; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2-18.28 NMSA 1978, as enacted by Laws 2012, ch. 55, § 1, relating to veteran employment tax credit, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.