This bill amends the existing law regarding the income tax credit for the adoption of children in New Mexico. It expands the eligibility for the tax credit from only special needs children to include any child adopted on or after January 1, 2007. Additionally, the amount of the tax credit is increased from $1,500 to $7,000. The bill also allows taxpayers to claim the credit for each year the adopted child can be claimed as a dependent for federal tax purposes.

Furthermore, the bill modifies the reporting requirements for the tax credit, stating that it will be included in the tax expenditure budget, which will detail the total annual aggregate cost of the credit. The definition of an adopted child is also updated to specify that the child must be under the age of eighteen. The provisions of this act will take effect for taxable years beginning on or after January 1, 2025.

Statutes affected:
introduced version: 7-2-18.16