February 29, 2024
Finance

Tax omnibus clears Finance committee, heads to Senate floor


The Senate Tax, Business and Transportation committee approved a tax omnibus bill Sunday morning. HB 252 includes a number of tax changes, including changes to income tax brackets, energy storage tax deductions, corporate income tax changes and more. The bill seeks to update tax brackets with no tax increases and with additional tax credits. Related: […]

The Senate Tax, Business and Transportation committee approved a tax omnibus bill Sunday morning.

HB 252 includes a number of tax changes, including changes to income tax brackets, energy storage tax deductions, corporate income tax changes and more.

The bill seeks to update tax brackets with no tax increases and with additional tax credits.

Related: Tax omnibus passes House

“So at a cost of $176 million, we move our personal income tax brackets from five to six, so we add a bracket,” Rep. Micaela Lara Cadena, D-Mesilla, said. “But this was designed to increase progressivity for working families and those tax cuts are targeted for working families.”

Hamblen proposed an amendment that added tax credits and increases to some tax credits including the Special Needs Adopted Child Tax Credit, providing an income tax deduction for school supplies bought by a public school teacher, extending the Geothermal Ground-Coupled Heat Pump Tax Credits, increasing the annual aggregate cap for each credit, creating the Clean Car Income Tax Credit and several gross receipts tax credits including one for legal services for wildfire recovery.

Both the amendment and the bill were approved on a 6-to-1 vote with Sen. Leo Jaramillo, D-Española, as the sole vote against.

Jaramillo explained his vote against the amendment was a change in the way the Hermits Peak/Calf Canyon Fire recovery tax credit was done.

“The tax credit would have been for the victims to claim state GRT but because of technical issues that it would have caused and wouldn’t have been as easy as just holding back the local GRT. The only way this credit would have worked is to take the full GRT credit,” Jaramillo said.

Jaramillo also spoke to communities in his district and they thought “that taking a local GRT from them would be hurting those communities.”

HB 252 goes to the Senate floor next. If the bill passes the Senate with the amendments intact, it would need to go back to the House to address changes made by the committee.



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