A million residents of New Mexico will get tax refunds this spring.
Michelle Lujan Grisham Will give More Rebates To New Mexico Residents
Last Friday, Governor Michelle Lujan Grisham signed a tax bill that, among other things, will give more than 900,000 taxpayers $500 rebates this spring.
The bill also increased the state’s gross receipts tax deduction for healthcare professionals, its child tax credit, and its film tax credit.
In a statement released by her office, Governor Lujan Grisham stated that each of these provisions “directly helps New Mexicans by supporting working families, bolstering the health care workforce, and fostering continued economic growth.” In addition to assisting over 200,000 New Mexico families, expanding the Child Tax Credit will broaden our successful campaign to lower child poverty rates, which fell by a full percentage point between 2019 and 2021. Increasing our support for film and television will encourage more private investment in our state and result in more jobs for New Mexicans, while lowering the gross receipts tax for medical professionals will lower patient costs and keep more doctors in New Mexico.
New Mexico Taxpayers Will Claim Bigger Credit This Year
Married couples will receive $1,000 in rebates, compared to $500 for single filers. Additionally, household leaders and surviving spouses will get $1,000. In June, the checks will be given out.
Additionally, House Bill 2 contained a separate $15 million appropriation for the Human Services Department that provided rebates to New Mexicans who weren’t qualified for those rebates.
214,000 families will receive tax breaks totaling more than $100 million thanks to the expanded child tax credit. They can claim a bigger credit the following year, sometimes up to $600 per child.
According to the press release, the bill also permits healthcare providers to deduct copays and deductible payments from gross receipts tax on “many healthcare practitioner services covered by insurance or managed healthcare plans.”
As one of only two states without such a deduction, New Mexico may have saved taxpayers up to $52 million as a result of the change.
Dr. Barbara McEneny, CEO of the New Mexico Cancer Center, said in a press release, “I am so pleased that Governor Lujan Grisham continues to support health care providers and ensuring access to care by expanding the gross receipts tax deduction for health care.” “New Mexico just became more competitive in attracting and keeping doctors with this step.”
The governor’s office stated that one of the nine target sectors the state is relying on to diversify its economy is the film tax credit.
Between 2021 and 2022, the industry generated $1.5 billion in economic impact in the state and supported more than 8,000 jobs. Additionally, the state’s median hourly pay for those employed in the film industry is $32.
“We have produced a robust industry that is giving New Mexico’s families and business owners better-paying jobs. Alicia J. Keyes, cabinet secretary for economic development, stated in the release that this bill “builds on that momentum so New Mexico can remain a leader in this innovative industry, rich in jobs, well into the next decade.”
The governor’s office estimates that the bill will cause a $150 million decrease in state revenue in the fiscal year 2024.