Senate committee advances tax package substitute after debate over business decoupling, housing GRT deduction and physician credits

The Senate Finance Committee on the morning of the hearing advanced a committee substitute for Senate Bill 151, a tax package that pairs revenue-raising changes to business tax treatment with targeted incentives for health care, housing and local news. After extended questioning and public testimony from business groups and housing advocates, the committee adopted an amendment shortening the affordable-housing GRT deduction’s sunset and voted 7–4 to move the substitute to the Senate floor.

Committee staff said the Senate portion of the package represents about $55 million in recurring tax capacity, with roughly the same amount expected from the House side, producing an overall recurring revenue estimate in the neighborhood of $110 million. Ismael Torres, chief economist, summarized the mechanics, saying the primary revenue increases come from decoupling certain federal business depreciation and interest provisions and by including certain foreign-sourced corporate income in New Mexico’s tax base. "The estimates are on the fiscal impact report page 1 about a 110,000,000," Torres said in explaining the scoring.

Supporters…