The proposed bill establishes a new income tax credit for residents of New Mexico who are billed for natural gas or electric services by a public utility or rural electric cooperative for their primary residence. This credit, referred to as the "gas and electric bill income tax credit," allows eligible taxpayers to claim a credit equal to fifty percent of the amount billed for these services during the taxable year. Taxpayers must apply for certification of eligibility from the public regulation commission, which will issue a certificate detailing the amount of credit and the taxable years in which it can be claimed. Additionally, if the credit exceeds the taxpayer's income tax liability, the excess amount will be refunded.

The bill also specifies that married individuals filing separately can only claim half of the credit that would have been available on a joint return. The credit must be claimed within one taxable year following the certification by the public regulation commission, and it will be included in the tax expenditure budget. The provisions of this act will take effect for taxable years beginning on or after January 1, 2025.