NM SB60

Reduces state gross receipts tax rate from 4.875% to 2%, governmental gross receipts tax from 5% to 2%, and compensating tax from 4.875% to 2%, effective January 1, 2027

Restructures individual income tax into three brackets (2%, 4%, 6%) with top rates applying above $30,000-$60,000 depending on filing status, and corporate income tax into three brackets with the 6% rate applying above $500,000, effective for taxable years beginning January 1, 2027

Limits net capital gain deduction to a maximum of $2,500 and eliminates the 40% deduction (up to $1,000,000) for capital gains from business sales

Repeals numerous tax credit programs including the Investment Credit Act, Rural Job Tax Credit, High-Wage Jobs Tax Credit, Technology Jobs and Research and Development Tax Credit, Affordable Housing Tax Credit, and Laboratory Partnership with Small Business Tax Credit, while allowing taxpayers to exhaust previously earned credits

Repeals the Film Production Tax Credit Act effective July 1, 2035 (delayed repeal)

Eliminates state gross receipts tax increment financing for metropolitan redevelopment projects and tax increment development districts, while preserving local government increment options and protecting outstanding bonds secured by prior state pledges

Repeals entire tax acts including the Estate Tax Act, Motor Vehicle Excise Tax Act, Insurance Premium Tax Act, Alternative Fuel Tax Act, Interstate Telecommunications Gross Receipts Tax Act, and Railroad Car Company Tax Act

Redirects funding for law enforcement (0.03%), fire protection (0.21%), emergency medical services (0.015%), and health care affordability (0.17%) funds from premium taxes to percentages of gross receipts tax net receipts

Maintains manufacturing-related deductions for consumables, equipment, and professional services through July 1, 2035, and agricultural deductions for feed, fertilizers, implements, and processing services through July 1, 2029

Creates new exemption from gross receipts tax for donations to 501(c)(3) nonprofit organizations and establishes a nonreverting boat fund for state lake improvements and Boat Act enforcement