- Governor signs tax bill including extension of working family tax credits.
SANTA FE – For the second year in a row, Governor Michelle Lujan Grisham signed 50 laws from the regular 60-day session from January to the end of March on Tuesday, the governor’s office confirmed.
One of the measures Lujan Grisham enacted was a tax law, HB 291, which the administration says represents a tax cut for working families through tax breaks and tax credits.
The working family tax credit will increase from 17 percent to 20 percent of the federal earned income tax credit to 25 percent in 2023. The tax credit is now available to taxpayers aged 18 and over, regardless of whether they have a Social Security number, which opens the tax credit to some taxpayers who would not qualify for the EITC, as stated in the Bill’s Tax Impact Report.
More:What You Should Know About The Cannabis Regulatory Act
Last month, the state began making payments of $ 600 to non-dependent taxpayers who claimed the loan.
The law also increases the cap on the low-income tax rebate from $ 450 to $ 730, with the rebate tied to inflation. It also expands eligibility by increasing the annual income cap to $ 36,000.
Taxpayers are entitled to the full value of the services, even if they exceed their tax liability.
“We know that these programs are among the most effective poverty reduction measures we have undertaken,” said the governor in a press release.
The tax and tax authorities estimated that the two measures will cost $ 73.7 million together in FY 2022, increasing to over $ 101 million for FY 2025.
The bill’s main sponsor, Javier Martínez, Rep., Albuquerque, D-Albuquerque said the measures provide redress for “decades of injustice in tax law”.
“By creating a fairer tax system that enables hardworking New Mexicans to keep more of their hard-earned dollars, we are making a direct investment not only in New Mexico families but in our local economy as well,” he continued in one Explanation continued.
The governor was expected to sign more bills on Wednesday, including a special session bill expanding certain grants for large companies to relocate operations to New Mexico under the Local Economic Development Act.
Any bills from the regular session that were not signed on Friday will not become law, and the governor has vetoed a measure that charges for public water systems “in a legislative message” in a legislative message.
The special session’s bills, including the state’s cannabis legalization measure, must be signed by April 20.
More: Governor signs bills on special needs education, school equity and child support
Algernon D’Ammassa can be reached at 575-541-5451, firstname.lastname@example.org, or @AlgernonWrites on Twitter.