This bill amends the existing law regarding the Child Income Tax Credit in New Mexico, specifically increasing the credit amount for qualifying children under the age of six. The new provisions state that for each qualifying child under age six, the amount of credit will be doubled compared to the amounts listed in the existing table for other qualifying children. Additionally, the bill introduces a mechanism for adjusting the credit amounts for inflation starting in the 2024 taxable year, ensuring that the credit remains relevant over time.

The bill also includes several changes to the structure of the existing law, such as the removal of certain subsections and the addition of new requirements for taxpayers. For instance, it specifies that taxpayers must apply for the credit using forms prescribed by the department and mandates an annual report on the credit's effectiveness. The provisions of this act will apply to taxable years beginning on or after January 1, 2025.

Statutes affected:
introduced version: 7-2-18.34