Child Tax Credit Expansion of $600 to Benefit Over 200,000 New Mexico Families

New Mexico Governor Michelle Lujan Grisham has signed a tax package that expanded the state’s Child Tax Credit. The new law increases the credit from $175 to $600 per child, depending on income. Now, a family with two children earning less than $25,000 per year would receive a credit of $1,200.

The Sun quoted Grisham saying in a statement following signing the tax measures into law, “Expanding the Child Tax Credit will help over 200,000 New Mexico families and broaden our successful effort to reduce child poverty rates, which dropped by a full percentage point between 2019 and 2021,” 

Child Tax Credit benefits

Expanding the Child Tax Credit will benefit over 200,000 New Mexico families. It is estimated to reduce child poverty in the state by 1.5 percentage points.

The new law also includes some other tax cuts and rebates, such as a $500 rebate for single filers and a $1,000 refund for married couples, heads of household, and surviving spouses.

Costs $250 million

The tax package is expected to cost the state $250 million in revenue. However, Governor Grisham has said that the benefits of the tax cuts and rebates outweigh the costs.

Expanding the Child Tax Credit is a significant victory for families in New Mexico. It will provide much-needed financial assistance to families with children and help to reduce child poverty in the state.