A tax bill emerges in Santa Fe: not surprisingly it’s a mixed bag
02.11.2026
As the brief 30-day legislative session heads to its conclusion in just over one week (next Thursday) a tax bill has emerged. It is Senate Bill 151 and here’s our analysis of each provision (basically a bill already introduced this session) which includes details from the Los Alamos Reporter:
• SB 12 – Physician Tax Credit: Establishes a $4,000 non-refundable income tax credit for qualified physicians to attract and retain physicians in New Mexico, addressing the state’s healthcare workforce shortage. RGF has no position on this. It will have some positive impact on doctor recruitment, but we’d prefer broader tax reductions.
• SB 36 – Quantum Facility Infrastructure Tax Credit: Creates a “refundable” tax credit (meaning it can be spending) for the development of quantum computing infrastructure, positioning New Mexico at the forefront of emerging technology sectors. The credit is capped at $50 million annually. RGF has a slightly negative view on this credit since it is “refundable” and targeted to one industry.
• SB 92 – Construction Materials Gross Receipts: Creates a new gross receipts tax (GRT) deduction for receipts from the sale of construction materials and labor used in the development of affordable multifamily residential housing projects. RGF has a slightly negative view on this credit since it is only available for so-called “affordable” projects. This deduction should be available to ALL home construction.
• SB 120 – Local Journalist Employment Tax Credit: creates a refundable tax credit (spending) for local news organizations equal to 30 percent of the company’s annual wages. The total amount that can be claimed each year is capped at $4 million. RGF opposes this kind of narrowly targeted spending.
• SB 133 – Health Equipment GRT Deduction: Creates a new gross receipts tax (GRT) deduction for receipts from the sale of certain in-office equipment and nonprescription in-office medications sold to healthcare practitioners or associations of healthcare practitioners, when the equipment or medication is used within the practitioner’s scope of practice to treat patients. RGF supports this as a means of making New Mexico more attractive as a place for doctors to practice.
• SB 151 – Corporate Income Tax Changes: The net result of this provision would be an increase in New Mexico’s economically-harmful corporate income tax. It decouples New Mexico’s corporate income tax from three components of the 2025 reconciliation bill, commonly known as the One Big Beautiful Bill Act (OBBBA). This bill decouples New Mexico from three H.R.1. provisions:
• First-year bonus depreciation,
• First-year expensing for manufacturing facilities, and
• Business interest deductions.
RGF strongly opposes this provision. The corporate income tax is the most harmful commonly applied tax. It does not generate much revenue in New Mexico relative to other state taxes ($790 million out of more than $13 billion in general fund revenue), but does tremendous economic harm.
RGF cannot support this provision and this provision alone brings the overall tax bill (SB 151) to a negative score.













