Gov. Michelle Lujan Grisham of New Mexico signed into law several critical tax goals, including a $500 tax rebate for over 900,000 taxpayers.
Grisham has also approved tax initiatives to assist New Mexico families, including boosting the child tax credit, raising the gross receipts tax deduction for health care practitioners, and expanding the film tax credit program.
Who qualifies for this rebate?
In June, solo filers will receive a $500 rebate, while married couples, heads of the home, and surviving spouses will receive a $1,000 rebate. This reimbursement will be distributed to almost 900,000 taxpayers.
House Bill 2 established a supplemental $15 million provision for the Human Services Department to offer relief payments to low-income New Mexicans who were not qualified for the rebates. The enlarged child tax credit will deliver more than $100 million in tax relief to an estimated 214,000 families, allowing them to claim a greater credit of up to $600 per kid, depending on family income.
The measure, as signed, will also help to make health care more affordable by allowing health care providers to deduct copays and deductible payments from gross receipts tax on a wide range of health care practitioner services covered by insurance or managed health care plans. The adjustment has the potential to save taxpayers up to $52 million. New Mexico was one of only two states without such a deduction.
Read more: How big is the child tax credit in 2023 and how to qualify?
State’s Film, Television Production Industry
The Governor also signed the component of the bill that promotes the expansion of the state’s extremely successful film and television production business, which is one of the state’s nine target areas for economic diversification.
The industry is coming off two years of record direct spending into New Mexico’s economy – $1.5 billion in the last two years – and now employs 8,000 people in everything from film and technical crews to small businesses like hardware and lumber stores, carpenters, electricians, security crews, transportation businesses, hotels, restaurants, and salons. In New Mexico, the hourly median compensation for a film worker is now $32.