Legislation would eliminate income tax for many middle-income families, while ensuring oil corporations pay their fair share

Santa Fe, N.M. - Today, the House Taxation and Revenue Committee voted 7-5 to advance a tax bill that would eliminate state income tax for more than half of New Mexico families. The committee substitute for House Bill 14 would also improve tax fairness in the oil and gas industries, raising over $130 million to put back in the pockets of working people.

House Bill 14, would make New Mexico's tax code more equitable by effectively eliminating state income taxes for many and expanding existing tax cuts to more than 100,000 families in our state.
Income tax would be fully offset for:

Married couples

Single individuals
with three kids making $70,000 or less

with three kids making $60,000 or less
with two kids making $65,000 or less

with two kids making $55,000 or less
with one kid making $55,000 or less

with one kid making $40,000 or less
with no kids making $30,000 or less

with no kids making $25,000 or less

The legislation would equalize the taxation of oil to bring it in-line with state taxes on natural gas, as well as with taxation rates in other oil producing states like North Dakota, Alaska, Louisiana, and Wyoming.

"New Mexico is building a fair tax system that puts our families first. For several years now, we have cut taxes for working people and made our tax code more reflective of our state's values," said bill sponsor Rep. Derrick Lente (D-Sandia Pueblo), who also serves as Chair of the House Taxation and Revenue Committee. "Today, we are doubling down on our investments in workers and families, while making sure that the industry profiting from the extraction of our state's natural resources pays its fair share."

In recent years, House Democrats have passed some of the most significant tax cuts in the nation for working people, with measures like the Working Families Tax Credit (renamed and expanded in HB 14), Low-Income Comprehensive Tax Rebate, and one of the most generous Child Tax Credits in the nation.

"New Mexico is making sure you can keep more of your hard-earned money," said New Mexico House Speaker Javier Martínez (D-Albuquerque), who is co-sponsoring the legislation. "We are delivering relief for middle class families."

House Bill 14 is an important part of the House Democrats' slate of legislation this session to address the rising cost of living by helping to raise pay and strengthen benefits for working people, protect consumers from corporate greed, and lower the costs of essentials, like housing, healthcare, and groceries.

Already this session, the House has more than a dozen bills focused on making life better and more affordable for New Mexicans, including:

Raising minimum pay for workers on publicly-supported projects (HB 6)

Stopping employers from taking credit card fees out of the wages of tipped workers (HB 22)

Providing New Mexicans with job protection and financial support when they welcome a child, fall ill, or need to take care of a loved one (HB 11)

Raising minimum teacher salaries by $5,000 and providing a 4% average salary increase for public school personnel, while increasing funding for employee benefits so educators and school staff can keep more of what they earn (HB 2, 156)

Expanding access to the federal Public Service Loan Forgiveness (PSLF) program within New Mexico (HB 69)

Providing free high school equivalency testing and preparatory services (HB 167)

Delivering $15 billion in state and federal funding for Medicaid and other critical healthcare services (HB 2)

Strengthening New Mexico's healthcare workforce, particularly in high-demand fields, by incentivizing New Mexico alumni working in healthcare to return to the state (HB 5)

Improving food security with $10 million in annual funding for food banks (HB 2)

Directing $110 million to targeted housing development, including transitional housing, with a focus on Bernalillo and Doña Ana counties (HB 2)

Making $45.9 million available to housing providers to focus on specialized housing solutions and a strategic response to homelessness (HB 2)

Improving access to housing and protecting renters from discrimination (HB 339, 253, 453, 448)
Allowing public utilities to implement additional rate structures intended to reduce utility costs for low-income customers (HB 91)

Increasing property tax exemptions for veterans (HB 47)

Members of the public are welcome to attend floor sessions and committee meetings at the New Mexico Roundhouse, and can tune in virtually through the New Mexico Legislature's Webcasts tab. Public comment can also be provided in-person, and via phone or Zoom as directed on the daily schedule.