Summary:

 Senate Bill 15 (SB 15) establishes two new income tax credits: the Volunteer Emergency Medical Services Income Tax Credit and the Volunteer Firefighter Income Tax Credit. These credits aim to incentivize and reward volunteer service in New Mexico’s emergency response systems. The credits, capped at $1,000 per eligible taxpayer annually, are refundable and cannot be claimed for the same taxable year. SB 15 is effective for taxable years beginning on or after January 1, 2025, and includes a delayed repeal date of January 1, 2035. 

Legislation Overview:

 Senate Bill 15 (SB 15) introduces two distinct income tax credits for eligible volunteers who meet specific service criteria. Key provisions include:

VOLUNTEER EMERGENCY MEDICAL SERVICES INCOME TAX CREDIT

Eligibility
•	Available to individuals licensed by the Emergency Medical Systems Bureau of the Department of Health.
•	Must volunteer in New Mexico with a certified emergency medical service agency or ambulance for at least fifty-two instances in a taxable year.
•	Applicants cannot be dependents of other taxpayers.
Credit Amount
•	$1,000 per eligible taxpayer.
Certification Process
•	Applicants must apply to the Emergency Medical Systems Bureau for certification of eligibility.
•	Certification requires proof of active volunteer service for the entire taxable year.
•	Certifications are issued in the order applications are received, subject to a $4 million annual cap on total credits.
Refundability
•	Any portion of the credit exceeding a taxpayer’s liability is refundable.

VOLUNTEER FIREFIGHTER INCOME TAX CREDIT

Eligibility
•	Available to individuals listed as active members on the rolls of a fire department certified by the State Fire Marshal’s Office.
•	Must provide firefighter services as unpaid volunteers for at least fifty-two instances in a taxable year.
•	Applicants cannot be dependents of other taxpayers.
Credit Amount
•	$1,000 per eligible taxpayer.
Certification Process:
•	Applicants must apply to the State Fire Marshal’s Office for certification of eligibility.
•	Certification requires proof of active volunteer service for the entire taxable year.
•	Certifications are issued in the order applications are received, subject to a $4 million annual cap on total credits.
Refundability
•	Any portion of the credit exceeding a taxpayer’s liability is refundable.

Additional Provisions
•	Taxpayers may not claim both credits in the same taxable year.
•	The Department of Taxation and Revenue must include these credits in its tax expenditure budget.
•	The act is repealed effective January 1, 2035.

Fiscal Implications 
The tax credits are limited to $4 million annually for each category, resulting in a combined maximum fiscal impact of $8 million per year. Administrative costs for the Department of Health, the State Fire Marshal’s Office, and the Taxation and Revenue Department will include certifying eligibility, processing claims, and managing the program’s budget.
 

Current Law:

 Currently, there are no state-level income tax credits specifically designed to incentivize volunteer emergency medical services or firefighter services. SB 15 creates a new incentive structure to recruit and retain volunteers in these critical fields.