SENATE BILL 260

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

George K. Muñoz and Benny Shendo, Jr.

AN ACT

RELATING TO TAXATION; CREATING THE WORKFORCE EDUCATION CORPORATE INCOME TAX CREDIT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Corporate Income and Franchise Tax Act is enacted to read:

     "[NEW MATERIAL] WORKFORCE EDUCATION CORPORATE INCOME TAX CREDIT.--

          A. For taxable years prior to January 1, 2029, a taxpayer that makes a donation to a public post-secondary educational institution or school district to fund a workforce education program may claim a tax credit against the taxpayer's tax liability imposed pursuant to the Corporate Income and Franchise Tax Act. The tax credit authorized pursuant to this section may be referred to as the "workforce education corporate income tax credit".

          B. The amount of the tax credit shall be in an amount equal to seventy-five percent of the amount donated in a taxable year, not to exceed seven hundred fifty thousand dollars ($750,000) per taxpayer.

          C. A taxpayer shall apply for certification of eligibility for the tax credit from the economic development department on forms and in the manner prescribed by that department. The total annual aggregate amount of tax credits that may be certified in a calendar year shall not exceed five million dollars ($5,000,000). Completed applications shall be considered in the order received. Applications for certification received after this limitation has been met in a calendar year shall not be approved.

          D. If the economic development department determines that a taxpayer meets the requirements of this section, that department shall issue a dated certificate of eligibility to the taxpayer providing the amount of tax credit for which the taxpayer is eligible and the taxable year in which the tax credit may be claimed. The economic development department shall provide the department with the certificates of eligibility issued pursuant to this subsection in an electronic format at regularly agreed-upon intervals.

          E. A certificate of eligibility may be sold, exchanged or otherwise transferred to another taxpayer for the full value of the tax credit. The parties to such a transaction shall notify the department of the sale, exchange or transfer within ten days of the sale, exchange or transfer in an electronic format prescribed by the department.

          F. A taxpayer allowed a tax credit pursuant to this section shall report the amount of the tax credit to the department in a manner required by the department.

          G. The tax credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the total annual aggregate cost of the credit.

          H. As used in this section:

                (1) "donation" means a monetary donation to a public post-secondary educational institution or school district to fund a workforce education program, but does not include a donation made by a taxpayer that:

                     (a) is an investor in an entity contracted to provide the workforce education program; or

                     (b) is an entity that is otherwise affiliated with the entity contracted to provide the workforce education program; and

                (2) "workforce education program" means a program to provide vocational training, career and technical education and job training to students enrolled at a public post-secondary educational institution or public school."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2026.

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