SENATE BILL 52
56th legislature - STATE OF NEW MEXICO - first session, 2023
Bill Tallman and Pamelya Herndon
RELATING TO TAXATION; INCREASING THE AMOUNT OF THE CHILD INCOME TAX CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-2-18.34 NMSA 1978 (being Laws 2022, Chapter 47, Section 5) is amended to read:
"7-2-18.34. CHILD INCOME TAX CREDIT.--
A. For taxable years beginning January 1, 2023 and prior to January 1, 2032, a taxpayer who is a resident and is not a dependent of another individual may apply for, and the department may allow, a credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act for each qualifying child of the taxpayer. The tax credit provided by this section may be referred to as the "child income tax credit".
B. The child income tax credit may be claimed as shown in the following table:
Adjusted gross income is Amount of credit per
Over But not over qualifying child is
$ 0 $ 25,000 $ 202
25,000 50,000  173
50,000 75,000  144
75,000 100,000  115
100,000 200,000  87
200,000 350,000  58
350,000  29.
C. If a taxpayer's adjusted gross income is less than zero, the taxpayer may claim a tax credit in the amount shown in the first row of the table provided in Subsection B of this section.
D. To receive a child income tax credit, a taxpayer shall apply to the department on forms and in the manner prescribed by the department.
E. That portion of a child income tax credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed shall be refunded.
F. Married individuals filing separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the child income tax credit that would have been claimed on a joint return.
G. A taxpayer allowed a tax credit pursuant to this section shall report the amount of the credit to the department in a manner required by the department.
H. The department shall compile an annual report on the child income tax credit that shall include the number of taxpayers approved by the department to receive the credit, the aggregate amount of credits approved and any other information necessary to evaluate the effectiveness of the credit. The department shall compile and present the annual report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost of the tax credit.
I. As used in this section, "qualifying child" means "qualifying child" as defined by Section 152(c) of the Internal Revenue Code, as that section may be amended or renumbered, but includes any minor child or stepchild of the taxpayer who would be a qualifying child for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the taxpayer."
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