The 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 credit table. Additionally, the bill introduces adjustments for inflation starting from the 2024 taxable year, ensuring that the credit amounts will be updated annually based on the consumer price index.

Other changes include the requirement for taxpayers to apply for the credit using forms prescribed by the department, and a mandate for the department to compile an annual report detailing the number of taxpayers receiving the credit and the total amount of credits approved. The bill also clarifies definitions related to the consumer price index and qualifying children, ensuring that the criteria align with federal definitions. The provisions of this act will take effect for taxable years beginning on or after January 1, 2025.

Statutes affected:
introduced version: 7-2-18.34