House Passes Bipartisan Tax Reform Package
Amended bill would ease tax burdens and provide rebates for all New Mexicans, provide relief for working families, incentives for rural health care providers, and support climate goals
Santa Fe, NM- Today, the House of Representatives passed House Bill 547, an omnibus tax reform package, with a bipartisan vote of 50-18. The tax package now heads to the Senate.
The measures in HB 547 would provide relief for working families, support climate goals, increase support for drug and alcohol treatment services, and ease the tax burden on New Mexicans.
“Our tax package reflects our priorities and our values as New Mexicans,” said House Taxation and Revenue Committee Chair and bill sponsor Representative Derrick Lente (D-Sandia Pueblo). “This proposal is about planting the seeds for generational change by putting more money back into the pockets of working families, decreasing the tax burden on New Mexicans and businesses across the state, and improving access to health care.”
“For too many working families in our state, trying to make ends meet is a constant challenge,” said Rep. Christine Chandler (D-Los Alamos). “With the smart policies in this tax package, we can help make it easier for hard working parents to keep up with day-to-day expenses and start getting ahead.”
“The tax credits in this package will help us bring resilience to our energy grid and attract investment from companies committed to decreasing their carbon footprint,” said Rep. Kristina Ortez (D-Taos). “We are also making clean energy technology more accessible and affordable for everyday New Mexicans.”
The measures in the HB 547 include:
Tax Equity
Increases the refundable Child Income Tax Credit for New Mexico households who need it most, providing up to $600 more per family and benefitting 350,000 children in our state, which will boost economic opportunities for parents, reduce childhood poverty, and improve outcomes for our kids.
Cuts Personal Income Tax rates for all New Mexicans.
Reduces the Capital Gains Tax break that overwhelmingly benefits the state’s highest earners, capping the deduction at $2,500, bringing our system in-line with other states.
Flattens the Corporate Income Tax to 5.9%, making companies contribute their fair share toward public services.
Reduces New Mexico’s overall Gross Receipts Tax rate from 5% to 4.5% until July 2024 and to 4.375% after, benefitting both families and local businesses.
Provides tax rebates to all New Mexicans who paid state income tax in 2021, with $500 for single filers, and $1,000 for joint filers.
Renewable Energy Incentives
Creates refundable Electric Vehicles Tax Credits for New Mexicans who purchase electric vehicles, $2,500 per vehicle, and up to $4,000 credits for lower income families.
Establishes large-scale and individual Energy Storage System Tax Credits.
Healthcare and Childcare
Creates a new GRT Deduction for Childcare assistance through either a licensed child care assistance program or a for-profit pre-kindergarten provider.
Expands the Rural Healthcare Practitioner Tax Credit to benefit more providers, including: pharmacists, registered nurses, social workers, counselors, midwives, and therapists.
Increases the Alcohol Excise Tax and distributes revenue to the Alcohol Harms Alleviation Fund, Local DWI Grant Fund, Drug Court Funds & municipalities in Class A counties with populations of 30,000 - 60,000.
Veterans and Retirees
Provides a tax exemption on military retirement pay for armed services retirees or their surviving spouses, up to $10,000 for 2022, increasing to $30,000 in 2024.
The Roundhouse is open to the public for the 2023 session. Members of the public can also view floor sessions and committee meetings on the New Mexico Legislature’s Webcasts tab, and provide comment via phone or Zoom as directed on the daily schedule.
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