For the first time, New Mexico families will be able to claim a state child tax credit on their state income tax returns this year for each of their children, a simple act that for many will have a significant impact on their lives.
Credits like this are a proven tool to reduce child poverty. The expansion of the federal child tax credit in 2021 reduced childhood poverty by 46 percent according to U.S. Census data . Since the federal credit expansion expired, childhood poverty nationwide has doubled .
Investing in our children’s wellbeing today will help this generation of New Mexico children have more reliable transportation and shelter, arrive at school more prepared to learn, experience better physical and mental health outcomes, and simply feel safer.
The new state child tax credit is the latest in a succession of policies adopted by Governor Michelle Lujan Grisham’s administration to improve the lives of our children from cradle to career. These initiatives include the creation of the Early Childhood Education and Care Department, one of the first cabinet agencies dedicated to early care and education in the nation. The establishment of the Early Childhood Trust Fund ensures consistent funding for our youngest children over the coming decades. Eligibility for New Mexico’s child-care assistance program has been expanded, making child care free for a majority of New Mexico families. The administration has also achieved a historic expansion of PreK that achieved universal access for 4-year-olds and increased access for 3-year-olds. Together, these efforts reflect a comprehensive approach to supporting and nurturing New Mexico’s children at every stage of their development.