The Senate Tax, Business, and Transportation Committee approved the tax omnibus bill Sunday morning. HB 252 includes a number of tax changes, including income tax classification changes, energy storage tax credits, and corporate income tax changes. This bill aims to update tax brackets with additional tax credits without raising taxes. Related: […]
The Senate Tax, Business, and Transportation Committee approved the tax omnibus bill Sunday morning.
HB 252 includes a number of tax changes, including income tax classification changes, energy storage tax credits, and corporate income tax changes.
This bill aims to update tax brackets with additional tax credits without raising taxes.
Related: Tax omnibus passes through the House
“So, at a cost of $176 million, we are moving the personal income tax bracket from five to six and adding more brackets,” said state Rep. Michaela Lara Cadena, D-Mesilla. “But this is intended to make working households more progressive, and these tax cuts are targeted at working households.”
Hamblen's proposals include adding tax credits and increasing some tax credits, including the special needs adoption tax credit, providing an earned income tax credit for school supplies purchased by public school teachers, and extending and increasing the geothermal ground-tied heat pump tax credit. Suggested amendments. Sets annual aggregate limits for each credit and creates several gross income tax credits, including a clean car income tax credit and legal services for wildfire recovery.
Both the amendment and the bill were approved on a 6-1 vote, with Spanish Democratic Sen. Leo Jaramillo the only dissenting vote.
Mr. Jaramillo explained that the vote against the amendment was a change in the method of the Hermits Peak/Calf Canyon Fire Recovery Tax Credit.
“The tax credit was meant for victims to claim state GRT, but technical issues arose so it could not have been as simple as simply suppressing local GRT. This credit is the only one that works. The way is to receive the full GRT credit,” Jaramillo said.
Jaramillo also spoke with communities in his district who believed that “taking away the local GRT would be detrimental to the community.”
HB 252 heads to the Senate floor next. If the bill passes the Senate with the amendments intact, it will need to return to the House to address changes made by committee.
