This bill establishes the "Taxpayer Dividend Income Tax Rebate Fund" and outlines the process for providing income tax rebates to eligible New Mexico residents. The fund will be created as a nonreverting fund in the state treasury, consisting of various sources such as distributions, appropriations, gifts, grants, and donations. Residents who file a New Mexico income tax return and are not dependents will be eligible for a rebate, calculated by dividing the total amount in the fund at the end of the previous calendar year by the number of residents who filed tax returns. The bill also mandates that rebates can be deducted from the taxpayer's income tax liability, with any excess refunded to the taxpayer.

Additionally, the bill modifies the distribution of federal mineral leasing funds, redirecting excess amounts to the newly created Taxpayer Dividend Income Tax Rebate Fund instead of the previously designated Early Childhood Education and Care Fund. It amends existing laws to reflect these changes, including the repeal of a section related to the previous fund distribution. The provisions for the income tax rebates will apply to taxable years beginning on or after January 1, 2026.

Statutes affected:
introduced version: 6-4-27, 22-8-34, 9-29A-3