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House, Senate package seeks to recapture corporate tax capacity; House adds 1% public‑employee raise

House of Representatives · February 18, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Lawmakers approved a multi‑part tax package that decouples New Mexico from parts of a recent federal corporate tax change, and earmarks revenue for a set of targeted incentives. The House Taxation and Revenue Committee used part of its capacity to restore a 1% pay increase for public employees that the Senate had removed; the package drew extensive debate over economic and local fiscal impacts.

The legislature approved a tax package that unlinks New Mexico from several federal corporate tax changes and uses the regained capacity to fund incentives in health care, housing, and local journalism, alongside a House amendment to restore a 1% salary increase for public employees.

The Senator‑sponsored vehicle (SB151) seeks to "decouple" New Mexico from costliest federal provisions — including first‑year bonus depreciation and expanded interest deductions — that reduced state corporate…

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