HOUSE DEMOCRATS NEWS RELEASE
On Tuesday at the Mary Esther Gonzales Senior Center in Santa Fe, Governor Michelle Lujan Grisham signed into law HB 163, a tax package that will ease the tax burden for working and middle class families, seniors, parents, nurses, and local small businesses across New Mexico.
“This tax package is about making a difference for every community in New Mexico,” said Representative Christine Chandler (D-Los Alamos). “We are putting more money back into the pockets of families with the Child Income Tax Credit, protecting the financial stability of our retired veterans and our low and middle-income senior citizens by cutting or eliminating their state income tax, and boosting our local businesses and attracting investment by cutting the Gross Receipts Tax.”
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.
“New Mexico is leading the way with innovative tax policies that support our working families,” said House Majority Leader Javier Martínez (D-Albuquerque). “Our Child Income Tax Credit will make it easier for struggling families to make ends meet in every community across the state.”
This tax credit would benefit every child in New Mexico, with more money going to the families who need it most.
“New Mexico’s Child Income Tax Credit will provide much needed relief to hardworking parents doing their best to raise their children in these trying times,” said Rep. Micaela Lara Cadena (D-Mesilla).
Also included in the law is a measure that will exclude social security income from state income tax for lower and middle-income seniors. This will help alleviate increases in the cost of living for many seniors living on fixed incomes. Up to $10,000 in military retirement income will also now be exempt from state income tax. That amount will increase to $20,000 in 2023, and to $30,000 in 2024.
Additionally, the bill will lower the gross receipts tax by 0.25% to reduce the 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.
HB 163 was sponsored by Representatives Chandler and Cadena, Leader Martínez, Senate Majority Leader Peter Wirth (D-Santa Fe), and Senator Michael Padilla (D-Albuquerque).
The Governor has until March 10 to sign bills into law, after which, any bills not signed will be pocket vetoed. Legislation can be monitored on the New Mexico Legislative website.