The bill proposes significant amendments to the Corporate Income and Franchise Tax Act, focusing on decoupling from certain federal corporate income tax provisions. It modifies the definition of "base income" to align with federal regulations while excluding deductions for bonus depreciation and interest expenses. New tax credits are introduced, including the Local Journalist Employment Income Tax Credit and the Physician Tax Credit, along with a gross receipts tax deduction for construction materials and labor used in affordable housing development. The bill also extends the eligibility date for the High-Wage Jobs Tax Credit and includes appropriations for salary increases for state and public school employees.

Additionally, the bill outlines changes to the apportionment of business income, ensuring that the income of controlled foreign corporations is included in the calculation. Taxpayers with significant manufacturing operations or headquarters in New Mexico can elect a different apportionment method based on sales factors. The legislation establishes specific criteria for eligibility for the new tax credits, including definitions for "journalist," "local news organization," and "local news printer." It also includes provisions for the high-wage jobs tax credit program, such as restrictions on reapplying for credits and mandates for annual reporting on the program's impact. Overall, the bill aims to support local journalism and affordable housing initiatives while providing salary increases for state employees.

Statutes affected:
introduced version: 7-2A-2, 7-4-10
CT substitute: 7-2A-2, 7-4-10
FC substitute: 7-2A-2, 7-4-10
Final Version: 7-2A-2, 7-4-10