New Mexico governor approves omnibus tax bill
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SANTA FE, N.M. (KRQE) – New Mexicans will soon see significant changes to tax rates and credit offerings. Wednesday, New Mexico Governor Michelle Lujan Grisham approved a massive tax package two years in the making.
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“Cutting costs for families has been a hallmark of my administration from day one. Since 2019, our policies have saved New Mexico taxpayers more than $910 million,” Governor Lujan Grisham said in a press release. “On top of the savings for families and businesses, we are growing our clean energy economy through credits for advanced manufacturing, clean cars, geothermal, and more. This is what fair and responsible tax leadership looks like.”
The upcoming changes include restructured income tax brackets. The restructuring focuses on decreasing income tax for low and middle-income New Mexicans. For example, the governor’s office says a married couple with $50,000 (filing jointly) could see a savings of $303 each year. The last time tax brackets were adjusted was in 2005.
The tax package also creates a range of credits for individuals and businesses. For example, the state will offer tax credits for New Mexicans that purchase electric or hybrid vehicles or charging units. The state will offer up to $400 in credits for residential electric vehicle charging station purchases, and there will also be a credit for commercial installations.
“With these new credits, we address both [electric vehicle] affordability and infrastructure at the same time,” Sen. Bill Tallman (D-Abq.) said in a press release.
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Large-scale tax credits in the package are also aimed at bringing alternative-energy industries to New Mexico. For example, the state is offering to offset up to one-fifth of the cost of equipment to produce things like batteries or solar panels.
“New Mexico’s leadership in advanced-energy manufacturing is creating jobs, diversifying our economy, and providing the world with clean energy that is essential to combating climate change. This credit will continue to attract investments from around the globe that we need in our state to meet our ambitious climate goals,” Environment Department Cabinet Secretary James Kenney said in a press release.
The governor also recently approved of other bills, including a record-breaking state budget and a bill to let New Mexico set clean fuel rules for statewide transportation.
