The proposed bill establishes a new income tax credit for residents of New Mexico who are billed for natural gas or electric services at 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 their utility bills for the taxable year. To qualify, taxpayers must apply for certification from the public regulation commission, which will issue a certificate detailing the eligible credit amount and the taxable years in which it can be claimed. The bill also stipulates that any portion of the credit exceeding the taxpayer's income tax liability will be refunded.

Additionally, the bill 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 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.