New Mexico Passes Its Own Child Tax Credit
Residents of New Mexico should expect a windfall in the next few days.
The expanded child tax credit may have expired at the end of last year, but with a possible extension of the credit very uncertain, some states have considered their own new child tax credits. This includes Alabama, Vermont, Michigan, and other states, which have either passed a new child tax credit or advanced it to some degree in their legislatures.
The latest state to follow is New Mexico, with Gov. Michelle Lujan Grisham signing legislation this week that includes a refundable child tax credit and other benefits for citizens. According to a fact sheet distributed by the governor’s office House Bill 163 creates a new refundable child tax credit of up to $175 per child and eliminated the income tax on Social Security. Other provisions include a one-time income tax rebate, a three-year income tax exemption for armed forces retirees, and a $1,000 refundable income tax credit for full-time hospital nurses.
The Albuquerque Journal reported last month that an initial proposal had the child tax credit as high as $350 per child. The same newspaper reported this week that families in New Mexico are struggling without the monthly federal child tax credit.
“New Mexicans, like all Americans, are feeling the pressure of rising costs,” Gov. Lujan Grisham said. “Coupled with the state’s robust current financial situation, there is no reason we shouldn’t be taking every action to cut costs for New Mexican seniors, families, and businesses – and today, we are doing just that.”
Legislative leaders praised the child tax credit provision specifically. “New Mexico is leading the way with innovative tax policies that support our working families,” House Majority Leader Javier Martínez said in the governor’s statement. “Our Child Income Tax Credit will make it easier for struggling families to make ends meet in every community across the state.”
The White House this week released a state-by-state analysis of tax relief that had been distributed from the American Rescue Plan Act, which passed about a year ago. In New Mexico, 420,000 children received the child tax credit, while 134,000 workers benefited from the expansion of the earned income tax credit.
As for the federal child tax credit, could it make a comeback?
A report this week stated that Sen. Sherrod Brown (D-OH) and Sen. Mitt Romney (R-UT) are engaged in bipartisan talks to bring back the credit in some form. Brown had been pushing for the child tax credit for several years before it was enacted, while Romney proposed a “child allowance” of his own in 2021.
Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.