House Bill 421 (HB 421) enacts the Business Security Assistance Act, and provides definitions and requires rule making. HB 421 provides rebate payments to certified vendors that sell discounted security equipment or security services to businesses. HB 421 creates the Business Security Assistance Fund. HB 421 creates a gross receipts tax deduction for sales of security equipment and services. HB 421 provides a delayed repeal. HB 421 makes a transfer from the General Fund to the Business Security Assistance Fund. HB 421 makes appropriations. 

 House Bill 421 enacts the Business Security Assistance Act (Act) and provides benefits for certified vendors of discounted security equipment or services to businesses
SECTION 1 makes Sections 1 through 6 of this act may be cited as the "Business Security Assistance Act” (Act). 
SECTION 2 provides definitions as used in the Act.
SECTION 3 adds vendor performance requirements and certification. The department shall: 
determine the performance requirements for security equipment by rule, including:
(1) the required strength, durability and impact resistance of a physical barrier; and 
(2) the sensitivity and range of area detection for monitoring devices; and 
B. certify vendors as eligible to receive a rebate for providing discounted security equipment or security services. 
SECTION 4 provides a rebate for selling discounted security equipment and services.
 A. A certified vendor that sells security equipment or services discounted by at least 25 percent to the owner of a business may receive a rebate payment in an amount equal to a 25 percent discount in the sale price; provided that the total aggregate amount of the rebate for sales made to the same business shall not exceed $25,000; and provided further that sufficient funding is available to pay the rebate from the Business Security Assistance Fund (Fund).
B. A certified vendor may apply to the department for a rebate on or before September 1 of each year on forms and in a manner prescribed by the department. Applications shall be considered in the order received. 
C. Subject to availability of funds in the Fund, rebate payments shall be paid to certified vendors that meet the requirements to receive a rebate on or before December 1 following the date the application is received. 
SECTION 5 creates the Fund as a nonreverting fund in the state treasury. The Fund consists of the usual resources. The department shall administer the Fund, and money in the fund is appropriated to the department to provide rebates pursuant the Act. Disbursements from the Fund shall be made pursuant to vouchers signed by the superintendent of regulation and licensing. 
SECTION 6 requires reports. On or before December 1 of each year, the department shall submit a report to the Legislative Finance Committee detailing the status of the Fund and the number of businesses that received a discounted sale of security equipment or a security service. 
SECTION 7 enacts a new section of the Gross Receipts and Compensating Tax Act titled DEDUCTION--GROSS RECEIPTS--SECURITY SERVICES AND EQUIPMENT. 
A. A certified vendor's receipts from the selling of discounted security equipment or security services to a business to improve security at a physical, nonresidential location in New Mexico where business is conducted, including a real estate development site or other space, may be deducted from gross receipts. 
B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department. 
C. The deduction provided by this section shall be included in the tax expenditure budget pursuant, including the annual aggregate cost of the deduction. 
D. Provides definitions as used in this section.
SECTION 8 transfers $100,000,000 from the General Fund to the Fund. 
SECTION 9 makes an appropriation of $1,000,000 from the General Fund to the Regulation and Licensing Department for expenditure in Fiscal Year 2026 and subsequent fiscal years to implement the Act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the General Fund. 
SECTION 10 provides a delayed repeal for Sections 1 through 7 of this Act are effective July 1, 2028.
SECTION 11 makes the effective date July 1, 2025. 

 House Bill 421 is substituted by the House Commerce and Economic Development Committee as CS/HB 421 as follows:
CS/HB 421 changes the title to delete: MAKING A TRANSFER FROM
THE GENERAL FUND TO THE BUSINESS SECURITY ASSISTANCE FUND;
CS/HB 421 makes changes in Section 2, Definitions as used in the Business Security Assistance Act as follows:
Subsection B provides a different definition of “certified vendor”.
B. "certified vendor" means a pass-through entity as defined in Section 7-3A-2 NMSA 1978 or a business incorporated under the Business Corporation Act or the Limited Liability Company Act that is doing business in New Mexico and sells security equipment or provides security services and that is certified by the department;
Subsection D(1)(b)  defining “security equipment”  has inserted “or removing objects from the business without permission of the business owner;”
CS/HB 421 in SECTION 3, Subsection B,  PERFORMANCE REQUIREMENTS-- VENDOR CERTIFICATION provides that the department shall certify vendors and “or deduction from gross receipts pursuant to Section 7 of this 2025 act” is inserted.
The department shall:
CS/HB 421 in SECTION 4 ofREBATE FOR SELLING DISCOUNTED SECURITY EQUIPMENT AND SERVICES amends Subsection A to insert “in a calendar year” in reference to the total aggregate amount of the rebate for sales made to the same business.
CS/HB 421 in SECTION 5 of BUSINESS SECURITY ASSISTANCE FUND CREATED changes the Business Security Assistance Fund to delete “non reverting” and to insert the following directions:
Balances in the fund at the end of a fiscal year for fiscal years 2026 and 2027 shall not revert. Balances in the fund at the end of fiscal year 2028 shall revert to the general fund.
CS/HB 421 in SECTION 7 DEDUCTION--GROSS RECEIPTS--SECURITY SERVICES AND EQUIPMENT in Subsection D of definitions as used in this section has inserted: 
(1) "certified vendor" means a pass-through entity as defined in Section 7-3A-2 NMSA 1978 or a business incorporated under the Business Corporation Act or the Limited Liability Company Act that is doing business in New Mexico and that is certified by the regulation and licensing department to sell discounted security equipment or services pursuant to the Business Security Assistance Act;
(2) "discounted" means an amount equal to at least a twenty-five percent discount in the sale price for security equipment pursuant to the Business Security Assistance Act;
CS/HB 421 changes the Title of Section 8 to Appropriation (rather than a transfer from the General Fund). This section is amended to specify the purposes of the expenditure and to specify any unexpended or encumbered balance shall revert to the General Fund. Section 8 now reads:
$100,000,000 is appropriated from the General Fund to the Business Security Assistance Fund for the purposes of the fund for expenditure in Fiscal Years 2026 through 2028. Any unexpended or unencumbered balance remaining at the end of Fiscal Year 2028 shall revert to the General Fund.
CS/HB 421 in SECTION 9 changes the appropriation from $1,000,000 to $4,000,000.