The proposed bill establishes a new "Gun Storage Income Tax Credit" under the Income Tax Act in New Mexico, aimed at incentivizing the purchase of secure gun storage solutions. Taxpayers who are not dependents and purchase certified secure gun storage after July 1, 2026, can apply for a one-time tax credit equal to the purchase price, capped at $1,000. The total amount of credits available for certification in any calendar year is limited to $500,000, and applications will be processed in the order they are received. To qualify, taxpayers must provide proof of purchase and ensure that the storage meets safety specifications as determined by the Department of Public Safety.

Additionally, the bill outlines the application process for claiming the credit, including a requirement to apply within twelve months of the purchase. If the credit exceeds the taxpayer's tax liability, the excess amount will be refunded. The bill also specifies that married individuals filing separately can only claim half of the credit available for joint filers. Furthermore, it allows for the allocation of credits among partners in a business entity, provided the entity meets eligibility requirements. An annual report on the credit's usage and effectiveness will be compiled by the department and presented to relevant legislative committees.