February 12, 2024
For Immediate Release
Contact:
Chris Nordstrum
(415) 601-1992
Chris.Nordstrum@nmlegis.gov
(SANTA FE, NM) – The New Mexico Senate convened for an additional floor session this afternoon to pass House Bill 252, a comprehensive tax package, by a vote of 26-13. HB 252 includes over a dozen tax measures offered by the Senate and a number of initiatives discussed during the joint session of the Senate Tax, Business & Transportation Committee and the House Taxation & Revenue Committee earlier this legislative session. The tax package now includes:
- Geothermal Electricity Tax Credit, offered by Sen. Jerry Ortiz y Pino (D-Albuquerque)
- Geothermal Heat Pump Tax changes, offered by Sen. Bill Soules (D-Las Cruces)
- Solar Market Tax Credit, offered by Senate Pro Tempore Mimi Stewart (D-Albuquerque)
- Calf Canyon Fire Legal Services GRT, offered by Sen. Leo Jaramillo (D-Española)
- Clean Car Tax Credit, offered by Sen. Bill Tallman (D-Albuquerque)
- Advanced Energy Equipment Credit, offered by Sen. Benny Shendo Jr. (D-Jemez Pueblo)
House Bill 252 also makes adjustments to the Personal Income Tax Brackets that will lower taxes for low- and middle-income New Mexicans, while not raising taxes on any income group. The tax package also boosts the Special Needs Adopted Child Tax Credit from $1,000 to $1,500 per year, and creates a new Teacher Purchased Supplies Tax Credit for public school teachers to claim a deduction on their personal income tax returns for the cost of school supplies. House Bill 252 strikes the sunset for the Armed Service Retirement Pay Tax, meaning New Mexico’s veterans can depend on a tax exemption of up to $30 thousand of retirement pay per armed forces retiree starting in taxable year 2024.
“New Mexico has the fiscal capacity to offer these tax credits while lowering personal income taxes on low-income New Mexicans and not raising it on any income bracket” said Senate Tax, Business & Transportation Committee Chair Benny Shendo, Jr. (D-Jemez Pueblo). “This comprehensive tax package emphasizes New Mexico’s green initiatives, investments which will pay dividends for the next generation. I am grateful to all of the legislators and staff who contributed to delivering this tax package to the people of New Mexico.”
“I feel confident we will start seeing results and benefits from this tax package for all New Mexicans,” said Senate Tax, Business & Transportation Committee Vice Chair Carrie Hamblen (D-Las Cruces). “This package was made possible because of the combined commitment from both the Senate and House tax committees. From veterans to teachers, rural health care workers to parents paying for child care, this tax package was created with all New Mexicans in mind.”
“This year’s process to build the tax package was by far the most transparent in my time in the Senate, and I believe the final output reflects compromise from both the Senate and House,” said Senate Majority Leader Peter Wirth (D-Santa Fe). “A key part of this year’s package is reforming the state’s corporate tax code by making large out of state corporations pay at the same tax rate as New Mexico’s small businesses.”
House Bill 252 now goes back to the House of Representatives for concurrence.
Other business considered today:
- SB 146 – HOSPITAL ACCEPTANCE OF HEALTH PLANS (Sen. Steinborn, passed 21-16)
- HB 193 – LAW ENFORCEMENT RETENTION DISBURSEMENTS (Rep. De la Cruz & Rep. Dixon, passed 38-0)
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