TLDR: 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. Rep. Micaela Lara Cadena, D-Mesilla, said the bill was designed to increase progressivity for working families and the tax cuts are targeted for working families.

An amendment proposed by Hamblen 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. He 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.

Key points:

• The Senate Tax, Business and Transportation committee approved a tax omnibus bill that includes 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.
• An amendment was added that includes tax credits and increases to some tax credits, such as the Special Needs Adopted Child Tax Credit and the Clean Car Income Tax Credit.
• The amendment and the bill were approved on a 6-to-1 vote, with Sen. Leo Jaramillo as the sole vote against.
• 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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