The proposed bill establishes a new tax credit known as the "volunteer search and rescue income tax credit" for taxpayers in New Mexico who volunteer in search and rescue efforts. To qualify for this credit, individuals must not be dependents of another taxpayer and must volunteer at least six times or for a minimum of sixty hours within a taxable year, prior to 2035. The credit amount is set at $500 for those who volunteer between six and eleven times or for sixty to one hundred twenty hours, and $1,000 for those who volunteer twelve times or more or for at least one hundred twenty hours. Taxpayers must apply for certification of eligibility through a designated resource officer, with a total cap of $3 million on the aggregate amount of credits that can be certified in any taxable year.

Additionally, the bill outlines the process for claiming the credit, including the issuance of a certificate of eligibility by the resource officer, which must be submitted to the department in a specified format. Any portion of the credit that exceeds the taxpayer's liability will be refunded. The bill also includes provisions for married individuals filing separately and mandates that the tax credit be included in the tax expenditure budget. The new section will be repealed effective January 1, 2036, and the provisions will apply to taxable years beginning on or after January 1, 2025.