Gov. Michelle Lujan Grisham, last week, used her veto power to scale down a massive tax relief package. The governor, however, left a few items intact, including a one-time tax rebate and an expanded child tax credit from New Mexico.
Governor Approves Tax Rebate And Expanded Child Tax Credit From New Mexico
On Friday, Gov. Grisham signed into law some of her key tax priorities, including a $500 one-time tax rebate and an expanded child tax credit.
The tax rebate of $500 will go to single filers (and married people filing separately), while married couples filing jointly, heads of households and surviving spouses will get $1,000.
The one-time tax rebate from New Mexico will go to anyone not filing as a dependent and anyone over age 18. The rebate money should start to go out in June and is estimated to benefit more than 900,000 people.
Separately, the lawmakers have set aside $15 million to offer relief payments to low-income New Mexicans not eligible for the rebate money.
Gov. Grisham also signed into law an expanded child tax credit from New Mexico. The expanded child tax credit will offer over $100 million in tax relief to about 214,000 families. Eligible families will now be able to claim a bigger credit of up to $600 per child, depending on the family income.
“Expanding the Child Tax Credit will help over 200,000 New Mexico families and broaden our successful effort to reduce child poverty rates, which dropped by a full percentage point between 2019 and 2021,” Gov. Grisham said in a statement.
Other Approved Measures
Along with the one-time tax rebate and expanded child tax credit from New Mexico, the approved tax relief package also makes health care more affordable.
The new bill allows health care providers to deduct copays and deductible payments from gross receipts tax on services offered by many health care practitioners and covered under insurance or managed health care plans. This provision is expected to result in up to $52 million in savings for taxpayers.
Gov. Grisham also approved the provision that supports the expansion of the film and television production industry. According to the governor’s office, the state’s film and television production industry supports about 8,000 jobs and had an economic impact of more than $1.5 billion over the last two years.
Along with approving the above tax relief measures, Gov. Grisham vetoed many tax provisions. According to the governor, the vetoed provisions would have reduced the state’s yearly revenue by $1.1 billion.
“We can and should consider permanent and meaningful tax reform, but it must be accomplished in a fiscally responsible manner that will not jeopardize the state’s future,” Gov. Lujan said.
As per governor’s office, the approved bill is estimated to reduce the recurring state revenues by about $150 million in Fiscal Year 2024, and about $246 million in Fiscal Year 2027.
This article originally appeared on ValueWalk
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