New Mexico Expands EITC
Yesterday, New Mexico Governor Michelle Lujan Grisham (D) signed legislation to increase the state’s Earned Income Tax Credit, known as the Working Families Tax Credit, from 10 to 17 percent of the federal credit as part of a broader tax package.
New Mexico’s EITC boosts income for more than 212,000 workers across the state, according to New Mexico Voices for Children. The expansion, coupled with the creation of a new deduction for lower-income workers, is meant to help offset the higher tax rates many families are experiencing due to the federal Tax Cuts and Jobs Act. Both measures were included in a tax package spearheaded by state Democrats, which will raise approximately $75 million in revenue from tax increases on e-cigarettes and vehicle registration fees, among others.
To learn more about New Mexico’s Working Families Tax Credit, as well as other state-level EITCs across the country, visit our 50-state map here.