CORPORATE INCOME TAX CHANGES

Summary

The bill rewrites how New Mexico calculates a corporation’s “base income” for its corporate income and franchise tax, matching federal treatment of foreign subsidiary earnings, bonus depreciation and interest expenses. It adds certain items—like interest on state bonds and credits from pass‑through entities—and subtracts others, such as income from U.S. obligations and excess depreciation. The changes affect any corporation that files a corporate tax return in New Mexico.

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