HOUSE DEMOCRATS NEWS RELEASE
On Monday night the House passed HB 163, a tax package that would make tax updates to help working and middle class families, seniors, parents, nurses, and local small businesses flourish across New Mexico, with a bipartisan vote of 59 to 9.
“Our tax package was crafted to help as many people as possible, with targeted provisions to ease the burden for those who need it most,” said Representative Christine Chandler (D-Los Alamos). “These tax updates will put more money back in the pockets of the New Mexicans, help small, local businesses prosper, and attract investment across our state.”
The tax package includes a child income tax credit for families to receive an income-based state tax credit for each qualifying child, providing relief to families across the state. This tax credit would benefit every child in New Mexico, with more money going to the families with lower-incomes.
“Too many families in New Mexico are struggling to make ends meet. The Child Income Tax Credit is one step we can take right now to provide relief to working families, ”said House Majority Leader Javier Martínez (D-Albuquerque).
Also included in the bill is a measure that would exclude social security income from state income tax for many lower and middle class seniors on a fixed income. This would help alleviate increasing cost of living expenses for many lower and middle class seniors living on fixed incomes. A floor amendment added a provision to the bill that would also exempt military retirement income from state income tax.
The bill would also reform the gross receipts tax by lowering the rate by 0.25% to alleviate tax burden for small and local businesses, allowing them to invest more money in their businesses. Other provisions include a one time tax credit of $1,000 for nurses and a 10% refundable and transferable tax credit to New Mexicans for solar energy equipment and installation costs.
The tax package was sponsored by Representative Chandler, Leader Martínez, and Senator Peter Wirth (D-Santa Fe). It now moves on to the Senate.