New Mexico Tax Changes - January 2025
New Mexico Health Care Delivery Assessment
- Authority: New Mexico Taxation and Revenue Department (TRD)
- Assessment: Health Care Delivery and Access Assessment (HCDAA)
- Filing Deadline: Eligible hospitals must file electronically by November 1 each year using TRD-41425.
- Purpose: Proceeds will fund a Medicaid Directed Payment Program to assist rural residents.
- Guidance Updates: TRD updated information on gross receipts tax for hospitals regarding HCDAA collection.
Land Conservation Tax Credits
- Authority: New Mexico Forestry Division
- Application Deadlines:
- February 28, 2025
- June 27, 2025
- October 31, 2025
- Credit Details:
- Up to 50% of the appraised value of donated land or conservation easements.
- Maximum credit of $250,000 per donor.
- Must be approved by the Energy, Minerals and Natural Resources Department.
- Usage: Tax credit can be utilized over 20 years or transferred in increments of $10,000.
Corporate Income Tax Rate Update
- New Rate: New Mexico TRD announced an updated single corporate income tax rate (details not specified).
For more information, applicants should refer to the respective departments' guidelines.
New Mexico Cigarette, Alcohol & Miscellaneous Taxes—New Mexico Taxation and Revenue Department will collect new health care delivery assessment.
The New Mexico Taxation and Revenue Department (TRD) has issued guidance notifying taxpayers that the TRD will collect the health care delivery and access assessment (HCDAA), to be determined annually by the New Mexico Health Care Authority (HCA). Eligible hospitals must electronically file their HCDAA each year by November 1, using TRD-41425, Health Care Delivery and Access Assessment Form. The annual assessment will detail the payments the hospital must make the following year. The TRD also updated its guidance on gross receipts tax and governmental gross receipts for hospitals to notify taxpayers it will collect the HCDAA. Proceeds from the HCDAA will establish a Medicaid Directed Payment Program to help rural New Mexicans. (FYI -207: Gross Receipts Tax Information for Hospitals, N.M. Tax. and Rev. Dept., 01/07/2025; B.500.42, Guidance for Taxpayers Regarding the Health Care Delivery & Access Assessment, N.M. Tax. and Rev. Dept., 01/06/2025.)
New Mexico Corporate Income Tax—New Mexico sets 2025 assessment application deadlines for land conservation tax credits.
The New Mexico Forestry Division has set the 2025 assessment application deadlines for land conservation tax credits as follows: February 28, 2025; June 27,2025; and October 31, 2025. Charitable donations of land--or an interest in land (conservation easement)--to public or private conservation agencies for conservation purposes are eligible for a state tax credit through the New Mexico Land Conservation Incentives Act. The maximum tax credit is 50% of the appraised value of the donation and a maximum of $250,000 per individual donor. Land conservation tax credits must be approved by the Energy, Minerals and Natural Resources Department Secretary in consultation with the Natural Lands Protection Committee. A taxpayer has a maximum of 20 years to fully use the tax credit following the taxable year in which the donation was made. Alternatively, the tax credit may be transferred (sold) to another taxpayer through a tax credit broker in minimum increments of $10,000. To apply for the credit, an applicant must submit a completed Land Conservation Assessment Application, one original and eight paper hard copies of all paper documents and one in electronic copy in form of compact discs, digital video discs, or USB flash drives of all required documents (items will be listed on application). The Application must be sent to: Carmen Austin, Climate Change Specialist, 1220 S. St. Francis Dr., Santa Fe, NM 87505, (505) 617-0119. (Land Conservation Tax Credits, N.M. Forestry Division, 01/01/2024.)
New Mexico Corporate Income Tax—Bulletin on New Mexico corporate income and franchise tax includes new single corporate income tax rate.
The New Mexico Taxation and Revenue Department (TRD) updated its information bulletin on the state's corporate income tax and corporate franchise tax. The bulletin notes that, as of January 1, 2025, all of a corporation's taxable income is subject to one tax rate of 5.9%. (FYI-350, Corporate Income Tax and Franchise Tax, N.M. Tax and Rev. Dept., 01/01/2025)
New Mexico Credits and Incentives—New Mexico sets 2025 assessment application deadlines for land conservation tax credits.
The New Mexico Forestry Division has set the 2025 assessment application deadlines for land conservation tax credits as follows: February 28, 2025; June 27,2025; and October 31, 2025. Charitable donations of land--or an interest in land (conservation easement)--to public or private conservation agencies for conservation purposes are eligible for a state tax credit through the New Mexico Land Conservation Incentives Act. The maximum tax credit is 50% of the appraised value of the donation and a maximum of $250,000 per individual donor. Land conservation tax credits must be approved by the Energy, Minerals and Natural Resources Department Secretary in consultation with the Natural Lands Protection Committee. A taxpayer has a maximum of 20 years to fully use the tax credit following the taxable year in which the donation was made. Alternatively, the tax credit may be transferred (sold) to another taxpayer through a tax credit broker in minimum increments of $10,000. To apply for the credit, an applicant must submit a completed Land Conservation Assessment Application, one original and eight paper hard copies of all paper documents and one in electronic copy in form of compact discs, digital video discs, or USB flash drives of all required documents (items will be listed on application). The Application must be sent to: Carmen Austin, Climate Change Specialist, 1220 S. St. Francis Dr., Santa Fe, NM 87505, (505) 617-0119. (Land Conservation Tax Credits, N.M. Forestry Division, 01/01/2024.)
New Mexico General Administrative Provisions—New Mexico updates information on special payment methods for certain large taxpayers.
The New Mexico Taxation and Revenue Department has updated guidance on special payment methods for five groups of taxes including gross receipts taxes and other business taxes, oil and gas taxes and fuel taxes. A taxpayer must use a special payment method when its average liability for any of one the five groups of taxes was over $25,000 a month in the prior year. The publication helps determine when a special payment method is required, and outlines the payment methods taxpayers can use, the procedures to follow for each method, and the consequences of failure to comply. (FYI-401, Special Payment Methods, N.M. Tax. and Rev. Dept., 01/01/2025.)
New Mexico Personal Income Tax—New Mexico sets 2025 assessment application deadlines for land conservation tax credits.
The New Mexico Forestry Division has set the 2025 assessment application deadlines for land conservation tax credits as follows: February 28, 2025; June 27,2025; and October 31, 2025. Charitable donations of land--or an interest in land (conservation easement)--to public or private conservation agencies for conservation purposes are eligible for a state tax credit through the New Mexico Land Conservation Incentives Act. The maximum tax credit is 50% of the appraised value of the donation and a maximum of $250,000 per individual donor. Land conservation tax credits must be approved by the Energy, Minerals and Natural Resources Department Secretary in consultation with the Natural Lands Protection Committee. A taxpayer has a maximum of 20 years to fully use the tax credit following the taxable year in which the donation was made. Alternatively, the tax credit may be transferred (sold) to another taxpayer through a tax credit broker in minimum increments of $10,000. To apply for the credit, an applicant must submit a completed Land Conservation Assessment Application, one original and eight paper hard copies of all paper documents and one in electronic copy in form of compact discs, digital video discs, or USB flash drives of all required documents (items will be listed on application). The Application must be sent to: Carmen Austin, Climate Change Specialist, 1220 S. St. Francis Dr., Santa Fe, NM 87505, (505) 617-0119. (Land Conservation Tax Credits, N.M. Forestry Division, 01/01/2024.)
New Mexico Personal Income Tax—2025 tax tables added to New Mexico information bulletin for new residents.
The New Mexico Taxation and Revenue Department (TRD) updated its informational bulletin for new residents to include the 2025 tax tables. (FYI-101, Information for New Residents, N.M. Tax and Rev. Dept., 01/01/2025)
New Mexico Sales & Use Taxes—New Mexico updates overview guidance on gross receipts and compensating taxes.
The New Mexico Taxation and Revenue Department (TRD) has updated its guidance giving an overview of gross receipts and compensating taxes through June 30, 2025. The publication covers: (1) governmental gross receipts tax; (2) leased vehicle gross receipts tax and leased vehicle surcharge; (3) tribal taxes; (4) gross receipts tax; and (5) compensating tax. The publication describes each of these taxes, the exemptions, deductions, and credits available for each tax; how and when to report and pay the taxes; account notices issued by the TRD; and responses to frequently asked questions. (FYI -105, Gross Receipts and Compensation Taxes: An Overview, N.M. Tax. and Rev. Dept., 01/01/2025.)
New Mexico Cigarette, Alcohol & Miscellaneous Taxes—New Mexico Taxation and Revenue Department will collect new health care delivery assessment.
The New Mexico Taxation and Revenue Department (TRD) has issued guidance notifying taxpayers that the TRD will collect the health care delivery and access assessment (HCDAA), to be determined annually by the New Mexico Health Care Authority (HCA). Eligible hospitals must electronically file their HCDAA each year by November 1, using TRD-41425, Health Care Delivery and Access Assessment Form. The annual assessment will detail the payments the hospital must make the following year. The TRD also updated its guidance on gross receipts tax and governmental gross receipts for hospitals to notify taxpayers it will collect the HCDAA. Proceeds from the HCDAA will establish a Medicaid Directed Payment Program to help rural New Mexicans. (FYI -207: Gross Receipts Tax Information for Hospitals, N.M. Tax. and Rev. Dept., 01/07/2025; B.500.42, Guidance for Taxpayers Regarding the Health Care Delivery & Access Assessment, N.M. Tax. and Rev. Dept., 01/06/2025.)
New Mexico Corporate Income Tax—New Mexico sets 2025 assessment application deadlines for land conservation tax credits.
The New Mexico Forestry Division has set the 2025 assessment application deadlines for land conservation tax credits as follows: February 28, 2025; June 27,2025; and October 31, 2025. Charitable donations of land--or an interest in land (conservation easement)--to public or private conservation agencies for conservation purposes are eligible for a state tax credit through the New Mexico Land Conservation Incentives Act. The maximum tax credit is 50% of the appraised value of the donation and a maximum of $250,000 per individual donor. Land conservation tax credits must be approved by the Energy, Minerals and Natural Resources Department Secretary in consultation with the Natural Lands Protection Committee. A taxpayer has a maximum of 20 years to fully use the tax credit following the taxable year in which the donation was made. Alternatively, the tax credit may be transferred (sold) to another taxpayer through a tax credit broker in minimum increments of $10,000. To apply for the credit, an applicant must submit a completed Land Conservation Assessment Application, one original and eight paper hard copies of all paper documents and one in electronic copy in form of compact discs, digital video discs, or USB flash drives of all required documents (items will be listed on application). The Application must be sent to: Carmen Austin, Climate Change Specialist, 1220 S. St. Francis Dr., Santa Fe, NM 87505, (505) 617-0119. (Land Conservation Tax Credits, N.M. Forestry Division, 01/01/2024.)
New Mexico Corporate Income Tax—Bulletin on New Mexico corporate income and franchise tax includes new single corporate income tax rate.
The New Mexico Taxation and Revenue Department (TRD) updated its information bulletin on the state's corporate income tax and corporate franchise tax. The bulletin notes that, as of January 1, 2025, all of a corporation's taxable income is subject to one tax rate of 5.9%. (FYI-350, Corporate Income Tax and Franchise Tax, N.M. Tax and Rev. Dept., 01/01/2025)
New Mexico Credits and Incentives—New Mexico sets 2025 assessment application deadlines for land conservation tax credits.
The New Mexico Forestry Division has set the 2025 assessment application deadlines for land conservation tax credits as follows: February 28, 2025; June 27,2025; and October 31, 2025. Charitable donations of land--or an interest in land (conservation easement)--to public or private conservation agencies for conservation purposes are eligible for a state tax credit through the New Mexico Land Conservation Incentives Act. The maximum tax credit is 50% of the appraised value of the donation and a maximum of $250,000 per individual donor. Land conservation tax credits must be approved by the Energy, Minerals and Natural Resources Department Secretary in consultation with the Natural Lands Protection Committee. A taxpayer has a maximum of 20 years to fully use the tax credit following the taxable year in which the donation was made. Alternatively, the tax credit may be transferred (sold) to another taxpayer through a tax credit broker in minimum increments of $10,000. To apply for the credit, an applicant must submit a completed Land Conservation Assessment Application, one original and eight paper hard copies of all paper documents and one in electronic copy in form of compact discs, digital video discs, or USB flash drives of all required documents (items will be listed on application). The Application must be sent to: Carmen Austin, Climate Change Specialist, 1220 S. St. Francis Dr., Santa Fe, NM 87505, (505) 617-0119. (Land Conservation Tax Credits, N.M. Forestry Division, 01/01/2024.)
New Mexico General Administrative Provisions—New Mexico updates information on special payment methods for certain large taxpayers.
The New Mexico Taxation and Revenue Department has updated guidance on special payment methods for five groups of taxes including gross receipts taxes and other business taxes, oil and gas taxes and fuel taxes. A taxpayer must use a special payment method when its average liability for any of one the five groups of taxes was over $25,000 a month in the prior year. The publication helps determine when a special payment method is required, and outlines the payment methods taxpayers can use, the procedures to follow for each method, and the consequences of failure to comply. (FYI-401, Special Payment Methods, N.M. Tax. and Rev. Dept., 01/01/2025.)
New Mexico Personal Income Tax—New Mexico sets 2025 assessment application deadlines for land conservation tax credits.
The New Mexico Forestry Division has set the 2025 assessment application deadlines for land conservation tax credits as follows: February 28, 2025; June 27,2025; and October 31, 2025. Charitable donations of land--or an interest in land (conservation easement)--to public or private conservation agencies for conservation purposes are eligible for a state tax credit through the New Mexico Land Conservation Incentives Act. The maximum tax credit is 50% of the appraised value of the donation and a maximum of $250,000 per individual donor. Land conservation tax credits must be approved by the Energy, Minerals and Natural Resources Department Secretary in consultation with the Natural Lands Protection Committee. A taxpayer has a maximum of 20 years to fully use the tax credit following the taxable year in which the donation was made. Alternatively, the tax credit may be transferred (sold) to another taxpayer through a tax credit broker in minimum increments of $10,000. To apply for the credit, an applicant must submit a completed Land Conservation Assessment Application, one original and eight paper hard copies of all paper documents and one in electronic copy in form of compact discs, digital video discs, or USB flash drives of all required documents (items will be listed on application). The Application must be sent to: Carmen Austin, Climate Change Specialist, 1220 S. St. Francis Dr., Santa Fe, NM 87505, (505) 617-0119. (Land Conservation Tax Credits, N.M. Forestry Division, 01/01/2024.)
New Mexico Personal Income Tax—2025 tax tables added to New Mexico information bulletin for new residents.
The New Mexico Taxation and Revenue Department (TRD) updated its informational bulletin for new residents to include the 2025 tax tables. (FYI-101, Information for New Residents, N.M. Tax and Rev. Dept., 01/01/2025)
New Mexico Sales & Use Taxes—New Mexico updates overview guidance on gross receipts and compensating taxes.
The New Mexico Taxation and Revenue Department (TRD) has updated its guidance giving an overview of gross receipts and compensating taxes through June 30, 2025. The publication covers: (1) governmental gross receipts tax; (2) leased vehicle gross receipts tax and leased vehicle surcharge; (3) tribal taxes; (4) gross receipts tax; and (5) compensating tax. The publication describes each of these taxes, the exemptions, deductions, and credits available for each tax; how and when to report and pay the taxes; account notices issued by the TRD; and responses to frequently asked questions. (FYI -105, Gross Receipts and Compensation Taxes: An Overview, N.M. Tax. and Rev. Dept., 01/01/2025.)