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 the credit based on adjusted gross income. 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 administrative updates, such as requiring taxpayers to apply for the credit using forms prescribed by the department and mandating that any portion of the credit exceeding a taxpayer's tax liability be refunded. Furthermore, it specifies that married individuals filing separately can only claim half of the credit that would have been available on a joint return. The department is tasked with compiling an annual report on the credit's effectiveness, detailing the number of taxpayers approved and the total amount of credits issued. 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