SANTA FE—This Legislative Session, Senate Republicans have proposed a suite of proposals to offer tax breaks for teachers, farmers, military veterans, and adoptive parents. The bills received affirmative support from the Senate Tax, Business, and Transportation Committee this week and will now be considered for inclusion in an omnibus tax package. All four proposals were included in the tax package last year, but were vetoed by Governor Michelle Lujan Grisham.
The bills are:
SB 118 DYED AGRICULTURAL DIESEL FUEL TAX CREDIT (Sponsored by Senator Greg Baca and Senator Joshua Sanchez): Provides a GRT deduction for receipts from the sale of dyed diesel used for agricultural purposes.
SB 171 TEACHER-PURCHASED SUPPLIES TAX CREDIT (Sponsored by Senator Craig Brandt): Creates an income tax deduction for school supplies purchased by public school teachers.
SB 117 SPECIAL NEEDS ADOPTED CHILD TAX CREDIT (Sponsored by Senator David Gallegos): Increases the special needs adopted child tax credit from $1,000 to $1,500.
SB 125 ARMED FORCES RETIREMENT PAY TAX SUNSET (Sponsored by Senator William Burt): Removes the sunset date on the armed forces retirement pay income tax exemption currently in effect through tax year 2026.
Senate Republican Whip, Senator Craig Brandt (R-Rio Rancho), who was a chief negotiator of the tax package last year, issued the following statement regarding the Republican proposals:
“These bills represent a years-long effort to bring some reasonable, commonsense tax relief to New Mexico families. We hope to see these changes codified in law this year and I urge the Governor to support them.”