New Mexico’s Tax Credits, Deductions, and Rebates

New Mexico offers more than 100 tax credits, deductions, and other exemptions. You can view the full spreadsheet which lists them all here. One of the so-called tax credits is the 25% rebate for the film industry which is not a “credit” at all. But, policymakers are looking for ways to close the $400 million deficit and are going to be considering closing some of these “loopholes” during the 2011 legislative session.

I have looked at the list and it doesn’t seem to me that many of these deductions and rebates are purely wasteful and should be cut in their entirety, but I’ll have more analysis on this coming soon. What do you think?

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4 Replies to “New Mexico’s Tax Credits, Deductions, and Rebates”

  1. After reviewing the supplied list of deductions my reactions are as follows:
    3,5,7,12,41 and 48 could be eliminated.

    21 and 49 should be discussed for elimination.

    54-104, all natural resource production and refinery deductions should be evaluated in terms of value to the state budget.
    thanks
    Dixon

  2. I prepare income tax returns for low and middle income taxpayers at no charge for AARP Tax Aide. I have a number of folks, I cannot call them taxpayers, who say they have no income and want their $35 state rebate for low income. I feel the low income rebate could either be eliminated or modified as it is wasteful. The state could use the money better.

    1. I actually agree with you Joe. The elderly tend to be wealthier than other age groups and this could/should be eliminated. Problem is that eliminating such a credit would unleash a political firestorm for very little in the way of budgetary benefit.

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