NM HB265

Creates the "Taxpayer Dividend Income Tax Rebate Fund" as a nonreverting fund in the state treasury to provide income tax rebates to New Mexico residents who file state income tax returns and are not claimed as dependents

Redirects excess extraction tax revenues that previously went to the Early Childhood Education and Care Fund to instead fund the new taxpayer rebate program, after first ensuring state reserves reach 25% of recurring general fund appropriations

Distributes rebates equally among all eligible filers, calculated by dividing the fund balance at year-end by the total number of residents who filed returns; returns filed after May 31 are ineligible

Redirects excess federal Mineral Leasing Act revenues (amounts exceeding the five-year average) from the Early Childhood Education and Care Fund to the new taxpayer rebate fund

Applies to taxable years beginning on or after January 1, 2026, and repeals Section 9-29A-3 NMSA 1978 related to prior early childhood education fund distributions