This bill amends the existing child income tax credit law in New Mexico to increase the credit amount for qualifying children under the age of six. Specifically, it introduces a new provision that states the credit amount for each qualifying child under age six will be doubled compared to the amounts listed in the existing credit table. Additionally, the bill includes provisions for adjusting the credit amounts for inflation starting in the 2024 taxable year, ensuring that the credit remains relevant over time.

The bill also makes several changes to the structure of the existing law, including the removal of certain subsections and the addition of new ones that clarify the application process for taxpayers, the refundability of the credit, and the reporting requirements for the department. Notably, it mandates that the department compile an annual report on the child income tax credit, detailing the number of taxpayers approved for the credit and the total amount of credits issued, which will help assess 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