N.M. Stat. Ann. § 7-2A-5
The corporate income tax imposed on corporations by Section 7-2A-3 NMSA 1978 shall be five and nine-tenths percent of taxable income.
History: 1978 Comp., § 7-2A-5, enacted by Laws 1981, ch. 37, § 38; 1981, ch. 176, § 1; 1983, ch. 213, § 8; 1986, ch. 20, § 36; 1987, ch. 277, § 5; 2013, ch. 160, § 3; 2019, ch. 270, § 18; 2024, ch. 67, § 10.
The 2024 amendment, effective January 1, 2025, created a flat corporate income tax rate, replacing the two-tiered marginal rate structure of 4.8 percent for taxable income under five hundred thousand dollars and 5.9 percent for taxable income of five hundred thousand dollars or more; after "shall be", deleted the remainder of the section and added "five and nine-tenths percent of taxable income".
Applicability. — Laws 2024, ch. 67, § 42 provided that the provisions of Laws 2024, ch. 67, §§ 5, 8, 10 and 32 through 37 apply to taxable years beginning on or after January 1, 2025.
The 2019 amendment, effective January 1, 2020, revised corporate income tax rates and corporate income tax brackets; in the introductory clause, after "shall be:", deleted "at the rates specified in the following tables:"; deleted former Subsections A through E, subsection designation "F." and the language "for taxable years beginning on or after January 1, 2018"; and preceding each occurrence of "income", deleted "net" and added "taxable".
The 2013 amendment, effective January 1, 2014, decreased certain corporate income tax rates over five years; in Subsection A, added the introductory sentence; and added Subsections B through F.
Use of federal tax code and regulations. — New Mexico income taxation law does not adopt directly the Internal Revenue Code and Treasury Regulations, but does permit New Mexico taxpayers to enjoy the benefits of their election to use accelerated depreciation methodologies in calculating federal taxable income. In re Rates and Charges of Mountain States Tel. & Tel. Co. v. N.M. State Corp. Comm'n, 1986-NMSC-019, 104 N.M. 36, 715 P.2d 1332.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 71 Am. Jur. 2d State and Local Taxation § 469.
85 C.J.S. Taxation § 1698.