SANTA FE – The Democratic governor of New Mexico has signed an economic relief bill that offers low-income workers $ 600 discounts and tax breaks for restaurants hampered by aggressive pandemic health restrictions.
Governor Michelle Lujan Grisham signed two bills on Wednesday that are part of an ambitious stimulus package. New Mexico public finances and trust funds rebound amid spikes in oil production and oil prices, along with a boost from federal aid in 2020 to state and local governments, corporations, the unemployed, school districts and tribal governments.
“This pandemic was devastating for everyone, but the pain has been distributed unevenly,” Lujan Grisham said in a statement. “My hope is that these economic relief efforts will reach those who need them most.”
States like New Mexico aren’t waiting for more federal aid as they approve coronavirus aid packages for residents and business owners devastated by the economic fallout from the pandemic.
A newly signed bill by Democratic Sens. Peter Wirth of Santa Fe and Siah Correa Hemphill of Silver City provides for a 4 month vacation from gross income taxes on sales and business services for business owners in restaurants, bars, food trucks, small breweries and wineries, and craft distilleries. Instructions on how to get the tax benefit will be distributed later by the state tax authorities.
The low-income worker bill interruption applies to 200,000 people who typically claim the state’s working-class family tax credit for individuals with incomes of $ 31,200 and joint applicants earning up to $ 39,000. It applies to 2020 entries on income tax at the tax and revenue office.
The state waived an estimated $ 200 million in general fund income. The municipalities are reimbursed for the lost tax revenue.
The Albuquerque Democratic Senate’s second bill, Jacob Candelaria, expands an emergency loan program for businesses that lost revenue after the 2020 pandemic.
It would allow small business loans of up to $ 150,000 at subprime rates of less than 2% annual interest with repayment terms of up to 10 years.
These terms are more generous to borrowers than the original utility program that provided $ 40.5 million in loans last year. Previous auxiliary loans can be refinanced at the new terms.
The New Mexico Finance Authority can add up to $ 460 million from the Severance Tax Permanent Fund to meet loan applications.