The proposed bill establishes two new tax credits aimed at supporting local journalism in New Mexico: the Local Journalist Employment Income Tax Credit and the Local Journalist Employment Corporate Income Tax Credit. Both credits are available for taxable years prior to January 1, 2031, and allow eligible taxpayers—owners of local news organizations that employ journalists—to claim a credit equal to thirty percent of the wages paid to each journalist. The bill sets a cap of seventy-five journalists per organization for credit eligibility and limits the total annual aggregate amount of credits to four million dollars. Taxpayers must apply for certification from the department, and any excess credit beyond the taxpayer's tax liability will be refunded.

The bill defines "journalist" and "local news organization" with specific criteria, including residency requirements and the nature of the news content produced. It also outlines the application process for the tax credits, stipulating that completed applications will be processed in the order received. Additionally, the bill mandates that the tax credits be included in the tax expenditure budget, ensuring transparency regarding their fiscal impact. The provisions of this act will apply to taxable years beginning on or after January 1, 2026.