Gov. Lujan Grisham enacts measure effectively slashing taxes for New Mexico working families
Expanding credits puts money back in pockets of middle-class New Mexicans; represents the most progressive shift in state tax structure in recent memory
SANTA FE, NM (STL.News) Working class New Mexico families stand to benefit immensely from the landmark expansions of two tax programs authorized Tuesday by Gov. Michelle Lujan Grisham.
Sponsored by Rep. Javier Martinez, Rep. Christine Chandler and Rep. Matthew McQueen, House Bill 291 dramatically expands both the Low-Income Comprehensive Tax Rebate, or LICTR, and the Working Families Tax Credit, making more New Mexicans eligible for the benefits and increasing the benefits they will receive.
The new law expands the Working Families Tax Credit to taxpayers without Social Security numbers and to taxpayers as young as 18 years old and also increases the value of the credit. For the 2021 and 2022 tax years, the Working Families Tax Credit will be worth 20 percent of the federal Earned Income Tax Credit, or EITC; it had previously been worth 17 percent of the EITC. Beginning in 2023, it will be worth 25 percent of the EITC.
Nearly 200,000 New Mexicans claimed the Working Families Tax Credit in 2019.