SENATE BILL 87
54th legislature - STATE OF NEW MEXICO - second session, 2020
Gerald Ortiz y Pino
RELATING TO TAXATION; INCREASING THE AMOUNT OF THE WORKING FAMILIES TAX CREDIT; PROVIDING AN INCREASED AMOUNT OF CREDIT FOR A TAXPAYER WHO CLAIMS A DEPENDENT UNDER THE AGE OF SIX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-2-18.15 NMSA 1978 (being Laws 2007, Chapter 45, Section 9, as amended) is amended to read:
"7-2-18.15. WORKING FAMILIES TAX CREDIT.--
A. A resident who files an individual New Mexico income tax return may claim a credit in an amount equal to [seventeen percent] the following percentages of the federal income tax credit for which that individual is eligible for the same taxable year pursuant to Section 32 of the Internal Revenue Code, as that section may be amended or renumbered:
(1) for a resident who claims a dependent who is under the age of six during any part of the taxable year for which the credit is claimed, thirty percent; and
(2) for all other residents, twenty percent.
B. The credit provided in this section may be referred to as the "working families tax credit".
[B.] C. The working families tax credit may be deducted from the income tax liability of an individual who claims the credit and qualifies for the credit pursuant to this section. If the credit exceeds the individual's income tax liability for the taxable year, the excess shall be refunded to the individual."
SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2020.
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