HB 37 LIMIT INCOME TAX CAPITAL GAINS DEDUCTION

Rep Christine Chandler

Actions: HPREF [2] HTRC-HTRC

Scheduled: Not Scheduled

 House Bill 37 (HB 37) modifies the capital gains deductions from net income (currently the greater of $1,000 or 40% of the net capital gain income) to a maximum of $2,500 or 40% up to $1 million from the sale of a business. 

 House Bill 37 (HB 37) modifies the capital gains deductions from net income. The current deduction is the greater of net capital gain income not to exceed $1,000 or 40% of the net capital gain income. HB 37 allows the deduction amount to be the capital gains amount up to $2,500. The bill also allows a deduction of 40% not to exceed $1 million of the capital gain only if the income is from the sale of a business that is allocated or apportioned to New Mexico.

HB 37 applies to tax years beginning January 1, 2025.