GUN STORAGE TAX CREDIT

HB0232

HOUSE BILL 232

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Randall T. Pettigrew
and
Jimmy G. Mason
and
John Block

AN ACT

RELATING TO TAXATION; CREATING THE GUN STORAGE INCOME TAX
CREDIT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
A new section of the Income Tax Act is enacted
to read:

"[
NEW MATERIAL
] GUN STORAGE INCOME TAX CREDIT.--

A. For taxable years prior to January 1, 2029, a
taxpayer who is not a dependent of another individual and who,
on or after July 1, 2026, purchases a secure gun storage may
apply for, and the department may allow, a one-time credit
against the taxpayer's tax liability imposed pursuant to the
Income Tax Act in an amount equal to the price paid for a
secure gun storage, not to exceed one thousand dollars
($1,000). The department shall allow a credit only for a
secure gun storage certified pursuant to Subsection B of this
section. The tax credit provided by this section may be
referred to as the "gun storage income tax credit".

B. A taxpayer shall apply for certification of
eligibility for a credit from the department of public safety
on forms and in the manner prescribed by that department. The
aggregate amount of credits that may be certified as eligible
in any calendar year is five hundred thousand dollars
($500,000). Completed applications shall be considered in the
order received. Applications for certification received after
this limitation has been met in a calendar year shall not be
approved. The application shall include proof of purchase,
that the secure gun storage meets technical specifications and
requirements relating to safety and standards compliance and
any additional information that the department of public safety
may require to determine eligibility for the credit. A dated
certificate of eligibility shall be issued to the taxpayer
providing the amount of credit for which the taxpayer is
eligible and the taxable year in which the credit may be
claimed.

C. A taxpayer may claim a credit provided by this
section for the taxable year in which the taxpayer purchases a
secure gun storage. To receive the credit, the taxpayer shall
apply to the department on forms and in the manner prescribed
by the department within twelve months following the calendar
year in which the secure gun storage was purchased. The
application shall include a certification made pursuant to
Subsection B of this section.

D. That portion of credit that exceeds a taxpayer's
tax liability in the taxable year in which the credit is
claimed shall be refunded to the taxpayer.

E. Married individuals filing separate returns for
a taxable year for which they could have filed a joint return
may each claim only one-half of the credit that would have been
claimed on a joint return.

F. A taxpayer may be allocated the right to claim a
credit in proportion to the taxpayer's ownership interest if
the taxpayer owns an interest in a business entity that is
taxed for federal income tax purposes as a partnership or
limited liability company and that business entity has met all
of the requirements to be eligible for the credit. The total
credit claimed by all members of the partnership or limited
liability company shall not exceed the allowable credit
pursuant to this section.

G. A taxpayer allowed a credit pursuant to this
section shall report the amount of the credit to the department
in a manner required by the department.

H. The department shall compile an annual report on
the credit that shall include the number of taxpayers approved
by the department to receive the credit, the aggregate amount
of credits approved and any other information necessary to
evaluate the credit. The department shall present the report
to the revenue stabilization and tax policy committee and the
legislative finance committee with an analysis of the cost of
the tax credit.

I. As used in this section:

(1) "firearm" means a weapon that will or is
designed to or may readily be converted to expel a projectile
by the action of an explosive; and

(2) "secure gun storage" means a new safe, gun
safe, gun case, lock box or other device that is designed to be
or can be used to store a firearm and that is designed to be
unlocked only by means of a key, a combination or other similar
means."

SECTION 2.
APPLICABILITY.--The provisions of this act
apply to taxable years beginning on or after January 1, 2026.

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