Legislation would eliminate state income taxes for families making less than $55k a year and expand existing tax cuts to more New Mexicans
Santa Fe, N.M. – Today, the House Taxation and Revenue Committee heard House Bill 14, which would expand tax cuts for more working people across New Mexico. HB 14 will now be considered by the Committee for inclusion in an omnibus tax package.
HB 14 is sponsored by Rep. Derrick Lente (D-Sandia Pueblo) and House Speaker Javier Martínez (D-Albuquerque). The legislation would increase refundable credits for qualifying taxpayers and expand eligibility for those credits, including to single filers without children. It would effectively eliminate state income taxes for New Mexic families making less than $55,000 a year. Significantly expanding eligibility for these tax credits could address the so-called "benefits cliff" issue, where even a slight increase in income can lead to a dramatic loss of eligibility for critical benefits.
"New Mexico has improved the fairness of our tax code over the last several years with policies that center the needs of our workers and families, over the interests of wealthy, out-of-state corporations," said Rep. Lente, who also chairs the House Taxation and Revenue Committee. "By increasing tax cuts and expanding benefits to more workers, we can put more money back into the pockets of New Mexicans who need it most in a way that is smart and fiscally responsible."
In recent years, House Democrats have passed some of the most significant tax cuts in the nation for working people, with measures like the Working Families Tax Credit (renamed and expanded in HB 14), Low-Income Comprehensive Tax Rebate, and one of the most generous Child Tax Credits in the nation.
House Bill 14 is part of the House Democrats' slate of legislation this session to address the rising cost of living by helping to raise pay and strengthen benefits for working people, protect consumers from corporate greed, and lower the costs of essentials, like housing, healthcare, and groceries.
Members of the public are welcome to attend floor sessions and committee meetings at the New Mexico Roundhouse, and can tune in virtually through the New Mexico Legislature's Webcasts tab. Public comment can also be provided in-person, and via phone or Zoom as directed on the daily schedule.