New Mexicans Could See Tax Deductions and Incentives with New Bill
New Mexicans could see reduced taxes and incentives if Governor Michelle Lujan Grisham signs House Bill 252, which was hailed as an essential bill by its sponsors. Rep. Derrick Lente, one of the bill’s sponsors, believes the bill will help New Mexicans keep more earnings.
The bill is part of the omnibus tax package, which includes 18 bills. According to Lente, low and middle-class individuals in New Mexico may see income tax deductions of up to $400. The bill also has incentives for teachers, veterans, and rural healthcare workers, which will aid in their personal and professional lives.
The bill contains several incentives, including expanding the rural healthcare practitioner tax credit and allowing public school teachers to deduct up to $1,000 for school supplies. It also flattens New Mexico’s corporate income tax rate at 5.9% for businesses with incomes less than $500,000 and creates refundable income tax credits for electric vehicles and charging units. The bill also establishes a fire recovery income tax credit of up to $50,000 for New Mexicans rebuilding homes destroyed by recent wildfires. Additionally, the bill continues the income tax exemption for up to $30,000 in armed forces retirement pay and adds surviving spouses to the exemption.
However, only some are satisfied with the bill. Rep. Jason Harper expressed his disappointment that more could have been done, as tax reforms could have significantly impacted New Mexico’s families and businesses. He was also disappointed that one incentive, which included putting all the tax paid when buying alcohol towards DWI treatment and prevention programs, was not included in the bill.
The bill has yet to be signed by Governor Grisham, who has until March 6 to approve it. If the bill is approved, it will take effect in July. This bill has been viewed as a step towards supporting working-class New Mexicans and providing them with the necessary assistance.
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