These new laws and regulations are taking effect in NM in the new year
As New Mexico ushers in the new year, several legislative changes are set to take effect on January 1, 2025, impacting various aspects of life in the state. Here’s an overview of the key laws and regulations coming into force:
Tax Reforms and Incentives
- Corporate Income Tax Adjustment: The new law is transitioning New Mexico to a flat corporate income tax rate of 5.9%, replacing the previous two-bracket system. This change aims to simplify the tax structure for businesses operating within the state.

- Advanced Energy Equipment Income Tax Credit: A new law will offset up to 20% of equipment costs for producing components related to solar, wind, battery manufacturing, and rare earth elements. This initiative is expected to attract investments and stimulate job creation in the renewable energy industry.

Las Cruces Minimum Wage Increase
- Las Cruces Wage Hike: The minimum wage law in Las Cruces will raise the minimum wage to $12.65 an hour per hour from $12.36 per hour.

NOTE: A previous version of this article inaccurately described the New Mexico minimum wage to increase, which it is not.
State Park Fee Hike
- Fee Modifications: A state law grants residents free access to state parks from January 1 through April 30, 2025. Afterward, entry fees will return at higher rates. Non-residents can also claim free day passes starting in October, extending through April 30.

Health Insurance Plan Regulations
- Supplemental Plan Requirements: New insurance regulations mandate that accident-only, specified disease, hospital indemnity, and other fixed indemnity plans sold to individuals with major medical coverage must comply with specific standards. Insurers are required to obtain proof of major medical coverage before issuing these supplemental plans, ensuring consumers are adequately informed and protected.

These legislative updates reflect New Mexico’s efforts to enhance economic growth, support its workforce, and ensure the well-being of its residents. As these laws take effect, individuals and businesses should familiarize themselves with the changes to fully understand their implications and benefits.
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