Bill > HB291

This bill proposes several changes to the tax system in New Mexico. Key provisions include: 1. Increasing and indexing the Low-Income Comprehensive Tax Rebate to account for inflation, allowing residents with low incomes to claim a refundable tax credit to offset state and local taxes. 2. Increasing the amount of the Working Families Tax Credit, which provides a refundable credit equal to 20% (increasing to 25% in 2023) of the federal Earned Income Tax Credit for eligible residents, and expanding the credit to certain residents who are ineligible for the federal credit. 3. Limiting the capital gains deduction from net income for certain taxpayers. 4. Allowing a regional operation to elect to increase the weighting of the sales factor when apportioning business income. 5. Limiting a 3% limitation on increases in valuation of residential property to owner-occupied homes, while providing a 10% limitation on increases for non-owner-occupied residential property. The bill also requires employers to provide information to employees regarding state assistance for low-income New Mexicans, such as the tax rebates and credits.

Budget and Finance

https://www.nmlegis.gov/lcs/legislation.aspx?chamber=H&legtype=B&legno=291&year=21