The corporate income tax imposed on corporations by Section 7-2A-3 NMSA 1978 shall be at the rates specified in the following tables:

A. For taxable years beginning prior to January 1, 2014:

If the net income is:

The tax shall be:

Not over $500,000

4.8% of net income

Over $500,000 but not over $1,000,000

$24,000 plus 6.4% of excess over $500,000

Over $1,000,000

$56,000 plus 7.6% of excess over $1,000,000.

B. For taxable years beginning on or after January 1, 2014 and prior to January 1, 2015:

If the net income is:

The tax shall be:

Not over $500,000

4.8% of net income

Over $500,000 but not over $1,000,000

$24,000 plus 6.4% of excess over $500,000

Over $1,000,000

$56,000 plus 7.3% of excess over $1,000,000.

C. For taxable years beginning on or after January 1, 2015 and prior to January 1, 2016:

If the net income is:

The tax shall be:

Not over $500,000

4.8% of net income

Over $500,000 but not over $1,000,000

$24,000 plus 6.4% of excess over $500,000

Over $1,000,000

$56,000 plus 6.9% of excess over $1,000,000.

D. For taxable years beginning on or after January 1, 2016 and prior to January 1, 2017:

If the net income is:

The tax shall be:

Not over $500,000

4.8% of net income

Over $500,000 but not over $1,000,000

$24,000 plus 6.4% of excess over $500,000

Over $1,000,000

$56,000 plus 6.6% of excess over $1,000,000.

E. For taxable years beginning on or after January 1, 2017 and prior to January 1, 2018:

If the net income is:

The tax shall be:

Not over $500,000

4.8% of net income

Over $500,000

$24,000 plus 6.2% of excess over $500,000.

F. For taxable years beginning on or after January 1, 2018:

If the net income is:

The tax shall be:

Not over $500,000

4.8% of net income

Over $500,000

$24,000 plus 5.9% of excess over $500,000.

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.

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.

Applicability. — Laws 2013, ch. 160, § 14 provided that Laws 2013, ch. 160, § 3 applies to taxable years beginning on or after January 1, 2014.

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.