EL PASO, Texas (KTSM) – Taxpayers in New Mexico should be expecting some extra money this spring.
Gov. Michelle Lujan Grisham signed into law some key tax priorities, including a $500 rebate for more than 900,000 taxpayers, on Friday, April 7.
Additionally, Grisham has also signed tax provisions designed to help New Mexico families by expanding the child tax credit and increasing the gross receipts tax deduction for health care practitioners and the film tax credit program.
Starting in June, rebates of $500 will be given to single filers and rebates of $1,000 will be given to married couples, heads of households and surviving spouses.
A separate fund of $15 million will be given to the Human Services Department to provide “relief payments to low-income New Mexicans not eligible for the rebates,” the governor said.
The expansion of the child tax credit will help with more than $100 million in tax relief. The new tax provisions add an estimated 214,000 families who will be able to claim a larger credit of up to $600 per child, depending on family income.
According to the governor’s office, the signing of these tax provisions will make health care more affordable by allowing health care providers to deduct co-pays and deductible payments from gross receipts taxes on many services covered by insurance or managed health care plans.
The governor also approved the portion of the bill that supports expansion of the film and television production industry.
The film and television production industry in New Mexico has generated over $1.5 billion of economic impact over the last two years and supports 8,000 jobs — from film and technical crews to small businesses, according to the governor’s office.
The governor also vetoed other tax provisions, which she said would have reduced the state’s annual revenue by $1.1 billion.
“These large reductions would risk significant funding cuts in future years for critical services, including education, health care, and public safety, which make up 83% of the state budget,” according to a news release sent out by the governor’s office. “As signed, the bill will reduce recurring state revenues by about $150 million in Fiscal Year 2024, growing to $246 million in Fiscal Year 2027. The governor is also ensuring fiscal responsibility by maintaining 35.6% in reserves in the budget.”