For Immediate Release
Contact:
Chris Nordstrum
(415) 601-1992
Chris.Nordstrum@nmlegis.gov
SANTA FE – Today, the Senate Tax, Business & Transportation Committee passed a comprehensive tax measure incorporating proposals from an array of tax bills introduced during this legislative session. This package will bring much-needed tax relief to New Mexico’s families and businesses and put money back into the state’s economy. It received bipartisan support and passed the committee on a 9-1 vote.
Included in this package:
- Eliminating New Mexico’s tax on income from Social Security benefits, a major priority Governor Lujan Grisham laid out in her State of the State address. Currently in New Mexico, there are over 26,000 grandparents who are the primary caretakers for their grandkids. This measure will provide direct relief to many of these multi-generational families and put New Mexico on par with the overwhelming majority of U.S. states who have already eliminated taxes on income from Social Security. This exemption includes maximum income caps, ensuring this relief is targeted for New Mexico’s low and middle-income seniors.
“The elimination of income tax on Social Security is a decision of historic proportions,” said Senator Michael Padilla (D-Albuquerque). “It will benefit retirees, children being fostered by their grandparents, and New Mexico’s middle class.”
- Reducing the State Gross Receipt Tax by .25%. Another key priority Governor Lujan Grisham outlined in her State of the State address, this measure will bring much-needed tax relief to New Mexican families and small businesses.
“For the first time in 40 years, New Mexicans will finally see a lower GRT,” said Senator Roberto “Bobby” Gonzales (D-Taos). “This move will lend families a helping hand while giving small businesses across the state a competitive edge.”
- Expanding the widely successful Solar Market Development Income Tax Credit, which was established two years ago during 54th Legislature. In just nine months after its implementation, over 2,300 households applied for and were awarded a New Solar Market Development tax credit, totaling nearly $6.7 million. The provision offered by the Senate Tax, Business & Transportation Committee increases the overall cap on the total dollars the state can award, makes the credit refundable, and extends the closing date on the program to December 31, 2031.
“The extended sunset date for the New Solar Market Development Income Tax Credit, along with the expanded cap to $12 million, is important for New Mexicans looking to switch to solar power for their homes,” said Senator Bill Soules (D-Las Cruces). “Making this credit refundable also makes this program more accessible to New Mexicans of all income levels. The more New Mexicans we have transitioning to solar power, the brighter our collective future will be.”
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