10 n EXECUTIVE VICE PRESIDENT’S MESSAGE continued from page 9 purposes. Currently, individual owners of pass-through entities report their proportionate share of business income on their individual income tax returns, and are subject to the $10,000 annual limit for state and local income taxes paid. These entities include S-corporations, partnerships, limited partnerships, limited liability partnerships, and limited liability companies. The bill provides a way for pass-through entities to avoid the effect of the state and local cap by allowing direct taxation at the entity level under the proposed entity-level tax instead of taxing the individual to whom the income is otherwise passed through under the State Income Tax Act or the Corporate Income Tax Act. Legislation Not Approved State Bank (HB 75): The defeat of the creation of a state bank was the number one priority of the NMBA this session. Fortunately, the bill was defeated in the first assigned committee. HB 75 would have created a tax-exempt public bank that would have had the authority to replicate the offering of bank services and products and potentially act as the state’s fiscal agent. We expect a similar bill will be introduced in 2023. 505-843-9232 | www.ELCDC.com Enchantment Land CDC is a local non-profit that assists in the growth and development of small businesses in New Mexico and El Paso, offering local expertise and local decisions on SBA 504 loans. Empowering the Local Economy Fall Election Senators do not come up for election until 2024. However, all house seats – as well as the governor and other statewide offices – will be on the ballot this year. Twelve house members, including Speaker of the House Brian Egolf, are not seeking re-election. Thirteen of the current Democratic House members and 10 Republican representatives have no opposition in the 2022 election cycle, nor do three candidates who have filed to replace retiring members. Thus, for 26 of the 70 House seats, incumbents/candidates will get a free, uncontested ride. Legislators not seeking re-election include: • Speaker Brian Egolf (D-Santa Fe) • Rep. Zach Cook (R-Ruidoso) • Rep. Jim Strickler (R-Farmington) • Rep. Kelly Fajardo (D-Belen/Los Lunas) • Rep. Debbie Armstrong (D-Albuquerque) • Rep. Kay Buonkeva (D-Albuquerque) • Rep. Daymon Ely (D-Corrales) • Rep. Rebecca Dow (R-Truth or Consequences) • Rep. Randy Crowder (R-Clovis) • Rep. Phelps Anderson (R-Roswell) • Rep. Karen Bash (D-Albuquerque) • Rep. Georgene Louis (D-Albuquerque) n
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