CIT-1: 1. 2025 CIT-1 NM Corporate Income & Franchise Tax Return (2025)
New Mexico · New Mexico TRD · Used for tax years 2025
The 2025 New Mexico CIT-1 is the Corporate Income and Franchise Tax Return. It reports income, deductions, tax credits, payments, and withholding to calculate the tax due or refund.
What you'll need
Have your corporation's FEIN, New Mexico Business ID, NAICS code, registered agent details, and incorporation and business information ready.
Depending on the entries you report, you may also need:
- Federal Form 1120, including line 29b for federal special deductions and Schedule C for the amounts used on CIT-C.
- CIT-A if you have income from both inside and outside New Mexico. Attach it to CIT-1.
- CIT-B for allocated non-business income or loss, and CIT-C for certain foreign dividends, Subpart F income, and GILTI.
- RPD-41379 for the net operating loss deduction. The form requires this attachment.
- CIT-CR for credits applied against income tax or refundable credits. Attach it when reporting those amounts.
- Forms 1099-MISC and RPD-41285 for New Mexico tax withheld from oil and gas proceeds, or Forms 1099-MISC and RPD-41359 for withholding from a pass-through entity.
- RPD-41287 if you select method 4 to calculate penalty and interest on estimated tax underpayments.
- CIT-S to list additional corporations if the filing group has more than three members.
How to file
Mark whether this is an original or amended return, complete the applicable entries and schedules, and have an officer sign and date the return.
For the amount due on line 34, the form says to mail your check or pay online using TAP. The supplied text does not give a mailing address or instructions for electronically filing the return.
If an IRS audit or amended federal return changed federal income tax liability for a year and that change has not been reported to New Mexico, submit an amended New Mexico Corporate Income and Franchise Tax Return to the New Mexico Taxation and Revenue Department. Include a copy of the amended federal return or Revenue Agent's Report, if applicable.
Common mistakes
- Leaving required fields blank. The form marks the FEIN, NAICS code, and original-or-amended return selection as required.
- Using filing-group totals that do not match page 2. The total in column 3 must equal line 27, and the total in column 4 must equal line 23. Use CIT-S for additional corporations when the group has more than three members.
- Replacing CIT-A or CIT-B with computerized schedules. Both schedules warn that the Department cannot accept computerized schedules instead of these forms.
- Leaving CIT-A incomplete. Complete column 1, “Total Everywhere,” and all other applicable entries so the Department can process the return. Round dollar amounts and calculate percentages to four decimal places.
- Skipping the direct-deposit question about foreign accounts. You must answer whether the refund will go to or through an account outside the United States. If yes, you cannot use this refund delivery option.
Questions people ask
What corporate income tax rate does the 2025 form use?
Line 20 directs you to multiply New Mexico taxable income on line 19 by 5.9%.
How much is the franchise tax shown on the form?
Line 23 lists franchise tax as $50 per corporation.
Is there a limit on the net operating loss deduction?
Yes. Line 17 says the deduction cannot exceed 80% of line 16. Attach Form RPD-41379.
Can I apply an overpayment to the next tax year?
Yes. Line 36 lets you apply an overpayment to your 2026 liability, up to the overpayment amount on line 35. Line 37 calculates the remaining overpayment to refund.
Can I receive my refund by direct deposit?
The form offers direct deposit using your routing number, account number, and account type, checking or savings. You must also answer the foreign-account question. This option is not available if the refund will go to or through an account outside the United States.