HB 18 Child Income Tax Credit

Why NM Legislators Should Vote for HB 18

HB 18: Child Income Tax Credit

Committees:  First, House Health & Human Services;  then House Taxation & Revenue

 Summary: HB 18 provides for a fully refundable New Mexico child tax credit of $25 to $175 per child, depending on income. It would take effect in the 2019 tax year and would be in effect for as long as the federal exemption amount is zero (federal Tax Cuts and Jobs Act of 2017 eliminated exemptions).

History:  New Mexico’s tax system is upside down––most New Mexico families pay more than twice the rate in state and local taxes that the wealthiest pay. The recent federal Tax Cuts and Jobs Act of 2017 made things worse by increasing taxes on families with children.

In 2018, HB367 would have given head-of-household tax filers (usually single parents with dependent children) the standard deduction and personal exemptions they would have been able to take prior to the federal tax changes. It passed the House 66-0, but died in the Senate Finance Committee.

Why This Bill Is Good for NM

  • New Mexico has one of the worst rates of child poverty in the nation.
  • This child tax credit would benefit 500,000 New Mexico children.
  • The bill would help mitigate the higher state taxes that families will pay due to the federal tax changes.
  • The tax credit would return $51 million to NM families, who would spend much of it in their local communities.
  • The bill improves economic equity for families of color and for women.
  • Governor Michelle Lujan Grisham supports a Child Tax credit: “As governor, I will build women’s economic security and opportunities by supporting a Child Tax Credit to reverse the impact of the Republican tax cuts that are increasing the tax burden for many New Mexico families.”
  • Child tax credits have many benefits, including:
    • improvements in infant and maternal health
    • decreased poverty
    • reduced childhood hunger
    • better test scores
    • higher graduation and college attendance rates
    • more earning power as adults.

Supporting Organizations

NM Voices for Children

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