Tax Relief

Governor Approves Expanded Enterprise Mortgage Program, Company Tax Reduction, $ 600 Low cost for People – Los Alamos Reporter

THE GOVERNOR’S OFFICE

Gov. Michelle Lujan Grisham on Wednesday signed Senate Law 1 and Law 3, a pair of economic measures that will have widespread bipartisan support in the legislation and will provide additional stimulus and relief to businesses and individuals across New Mexico.

In addition to the laws already signed by the governor that provide $ 200 million in small business grants, the economic relief measures signed Wednesday will give hundreds of thousands of frontline and low-wage workers a personal income tax rebate of $ 600 . Provide four month tax vacation for food and beverage companies particularly hard hit by the economic impact of the pandemic, and give up to $ 500 million to small businesses in New Mexico seeking credit at discounted rates .

“Dollar for dollar, I would use New Mexico’s direct stimulus effort against any other state in the country,” said Governor Lujan Grisham. “We have provided hundreds of millions of unemployment benefits. Small Business Grants, Loans, Tax Vacation; and now direct discounts for the frontline workers who have continued to show up to support themselves and their families, and who deserve whatever support their government can provide. This pandemic was devastating for everyone, but the pain was distributed unevenly. I hope these economic relief efforts reach those who need it most, and my commitment is that New Mexico will continue to empower and support those who need it now and in the future as we build a successful and sustainable recovery. “

“Small businesses have struggled long and hard to keep their doors open and employ people during this pandemic,” said Rob Black, president and CEO of the New Mexico Chamber of Commerce. “Together with the recently approved US $ 200 million LEDA grant to HB 11, these measures provide a critical set of tools for economic recovery.”

Senate Bill 1 grants an income tax break of $ 600 to families and individuals applying for the Working Family Tax Credit – individuals earning $ 31,200 or less; and householders, surviving spouses, or married couples filing together and earning up to $ 39,000. Around 200,000 New Mexicans applied for the working family tax credit in 2019, according to the tax and tax authorities.

Taxpayers who believe they are eligible for the Working Family Tax Credit and the new income tax rebate are encouraged to file their 2020 income tax returns as early as possible. The state tax and tax authority urges all taxpayers to file electronically, which speeds processing and puts refunds and discounts in the hands of taxpayers faster.

“We know that many New Mexicans have been badly hit in the past year, so we will pass this money on to taxpayers as soon as possible,” said Tax and Treasury Secretary Stephanie Schardin Clarke.

Senate Bill 1 also provides for a four-month gross income tax vacation for food and beverage companies, including restaurants, bars, food trucks, small breweries, wineries and craft distilleries that have been financially affected by the pandemic. The Tax and Finance Department will shortly be giving companies instructions on how to apply for this credit. The bill exempts local governments by creating a distribution equal to the amount of revenue that would otherwise have been due.

Senate Bill 1 was sponsored by Senate Majority Leader Peter Wirth, Senator Siah Correa Hemphill, Senator Jacob Candelaria, and Rep. Javier Martinez. It was passed unanimously by the Senate and 66-1 by the House of Representatives.

Senate Bill 3 allows more businesses to take advantage of a $ 500 million pool of loan funds at a discounted rate. The bill expands the Small Business Recovery Loan Fund created by lawmakers last year and provides funds from the permanent severance tax fund. The new bill greatly simplifies licensing standards so that more companies can get the financial support they need. Under the previous program, which lawmakers approved in a special session last year, 890 companies received loans totaling $ 40.5 million.

The New Mexico Finance Authority will manage and manage the SB3 loan fund onn The announcement will be made as soon as the application is available.

Marquita Russel, CEO of the New Mexico Finance Authority, said credit requirements for loss of income and documentation had been relaxed, and the changes in SB3 would allow more of the 160,000 small businesses in the state access to soft loans.

“The Small Business Recovery Loan Fund has supported more than 5,000 jobs in the state. It was a lifeline for many small businesses and now many more can participate, ”said Russel.

Senate Bill 3 was sponsored by Rep. Marian Matthews and Sen. Jacob Candelaria. It was approved by Senate 35-3 and House 51-17.

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