Bill > HB14

This bill introduces several significant tax-related changes for New Mexico. First, it establishes a new Earned Income Tax Credit (EITC) that provides tax credits for low to moderate-income workers, with different credit percentages based on the number of qualifying children, ranging from 2.6% to 15.3%. The credit has specific income thresholds and phaseout amounts that vary depending on family size, with provisions for automatic inflation adjustments starting in 2026. Additionally, the bill creates a Foster Parent and Guardian Income Tax Credit, which allows taxpayers who are foster parents or guardians to claim up to $3,000 annually ($250 per month) for caring for children. The bill also modifies the gross receipts tax deduction for health care practitioners to include coinsurance payments, increases liquor excise tax rates across various alcoholic beverage categories, and establishes a new Tribal Alcohol Harms Alleviation Fund to be funded by a portion of liquor excise tax revenues. These changes are designed to provide financial support to working families, incentivize foster care and guardianship, support healthcare providers, and address alcohol-related challenges in tribal communities. The new tax credits and provisions will generally take effect in 2026, with some liquor tax changes beginning in 2025.

Budget and Finance, Business and Industry

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=14&year=25