New Mexico To Introduce Deductions for Healthcare, Electricity, and More Effective July 1, 2024

New Mexico has enacted legislation to provide new deductions from the state’s Gross Receipts Tax for various industries, with most coming into effect July 1, 2024, and remaining in effect until July 1, 2034. The new deductions effective July 1, 2024 include:

• Sales of wind and solar generation and energy storage equipment to governments
• The purchase and installation of home renovation such as ramps and hand rails for those on Medicaid that ensure the health, welfare, and safety of the recipient, or which enhance their ability to access their home environment and act independently
• Childcare assistance provided through a licensed childcare assistance program or a for-profit pre-kindergarten provider
• Legal services for those seeking compensation under the federal Hermit’s Peak/Calf Canyon Fire Assistance Act

Also effective July 1, 2024, the state is introducing a credit for the sale and use of dyed special fuels for agricultural purposes. Effective January 1, 2025, the state is also introducing a deduction for geothermal electricity generation facility costs. (New Mexico H.B. 252, Laws 2024)