46)), establishes an elective entity level tax on a pass-through entity (PTE) (including partnerships, S corporation and LLCs treated as either) (PTE tax). 1, 2032 (4) an income tax exemption for a portion of military retirement pay and (5) an income tax exemption for a portion of social security income.Īnother act signed by the Governor (2022 NM HB 102 (N.M. 1, 2030 to Jan 1, 2028.įor individual income tax purposes, 2022 NM HB 163 provides (1) an income tax rebate for resident individuals (eligible taxpayers will begin receiving rebates in July 2022) (2) a one-time tax credit for nurses working full time at a New Mexico hospital (for tax year 2022) (3) a child income tax credit for tax years beginning on Jan. (Under prior law, any excess credit could only be carried forward for five years.)Ģ022 NM HB 163 reduces the period for which the 2021 sustainable building tax credit is available from tax years prior to Jan. 2022 NM HB 163 allows the credit to be sold, exchanged or otherwise transferred to another taxpayer for the credit's full value and provides that any excess credit will be refunded. The credit equals 10% of the purchase and installation costs of the system but is capped at $6,000 per taxpayer per year. 1, 2032 (from 2028), the solar market development income tax credit, which can be claimed by an individual who purchases and installs a solar thermal system or photovoltaic system in a residence, business or agricultural enterprise in New Mexico. For purposes of this provision, "professional services" means accounting, legal, information technology, engineering or architectural services.Ģ022 NM HB 163 extends for tax years before Jan. If the gross receipts tax rate is increased, the state's compensating tax rate will also increase to 5.125%.Įffective July 1, 2022, 2022 NM HB 163 allows receipts from selling professional services to be deducted from gross receipts or governmental gross receipts if the sale is made to a manufacturing business. If, however, for any single fiscal year occurring after FY 2025 and before FY 2030, the gross receipts tax revenue is less than 95% of the tax revenues for the prior fiscal year, the gross receipts tax rate will increase to 5.125% on the July 1st of the year following the rate determination made by the New Mexico Secretary of Finance and Administration. ![]() 47) (2022 NM HB 163), effective July 1, 2022, reduces the state's gross receipts tax and compensating tax rates from 5.125% to 5.00% and further reduces the rates to 4.875% beginning July 1, 2023. On March 8, 2022, New Mexico Governor Michelle Lujan Grisham signed a suite of tax bills that reduces the state's gross receipts tax rate, establishes an elective pass-through entity tax, extends selected credits and provides for certain gross receipts tax deductions and individual tax credits.Ģ022 NM HB 163 (N.M. ![]() New Mexico governor signs various tax bills into law, reduces the state's gross receipts tax rate establishes an elective pass-through entity tax Prepared by Ernst & Young's State and Local Taxation group, this weekly update summarizes important news, cases, and other developments in U.S. Ernst & Young's State and Local Tax Weekly newsletter for March 11 is now available.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |