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AN ACT
PROVIDING A REFUNDABLE PERSONAL INCOME TAX CREDIT FOR
TAXPAYERS FILING RETURNS FOR THE 2007 TAXABLE YEAR; MAKING AN
APPROPRIATION; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Income Tax Act is
enacted to read:
"REFUNDABLE CREDIT--2007 TAXABLE YEAR.--
A. Except as otherwise provided in Subsection B of
this section, a taxpayer who for the 2007 taxable year files
a New Mexico income tax return, is a full-year or first-year
resident of New Mexico and is not a trust, estate or a
dependent of another taxpayer is allowed a credit in the
amount determined under Subsection C of this section. The
credit may be allowed even though the taxpayer has no income
taxable under the Income Tax Act for the 2007 taxable year.
B. A claim for the refundable tax credit provided
in this section is not allowed for a resident who was an
inmate of a public institution for more than six months
during the 2007 taxable year.
C. The tax credit allowed in this section shall be
in the amount determined from the following tables for:
(1) married taxpayers filing jointly:
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Adjusted Gross Income
Credit Amount
for Taxpayer
and Spouse
Additional Credit
Amount for Each
Dependent
Over
Not Over
0
$30,000
$100
$50.00
$30,000
$50,000
$ 80.00
$40.00
$50,000
$70,000
$ 50.00
$25.00
$70,000
$ 0.00
$ 0.00; or
(2) taxpayers filing as single, head of
household, married filing separately or as a surviving
spouse:
Adjusted Gross Income
Credit Amount
for Taxpayer
Additional
Credit Amount
for Each
Dependent
Over
Not Over
0
$30,000
$50.00
$50.00
$30,000
$50,000
$40.00
$40.00
$50,000
$70,000
$25.00
$25.00
$70,000
$ 0.00
$ 0.00.
D. The tax credit allowed in this section may be
credited by the department against the taxpayer's New Mexico
income tax liability. If the taxpayer is liable for interest
and penalties on the taxpayer's income tax liability for the
2007 taxable year prior to the effective date of this
section, the amount of interest and penalties shall not be
recomputed due to the credit provided by this section but may
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be satisfied by applying the credit to the penalty or
interest due. Notwithstanding the provisions of Section
7-1-68 NMSA 1978, interest in the amount established by
Subsection B of Section 7-1-68 NMSA 1978 shall only be
allowed and paid on the amount to be refunded under
Subsection E of this section if not refunded or credited
within one hundred twenty days after the effective date of
this section or the applicable period established in
Subsection D of Section 7-1-68 NMSA 1978, whichever is later.
E. If the tax credit exceeds the taxpayer's income
tax liability, the excess shall be refunded to the taxpayer.
F. For purposes of this section, "dependent" means
"dependent" as defined by Section 152 of the Internal Revenue
Code."
Section 2. APPROPRIATION.--Seven hundred fifty thousand
dollars ($750,000) is appropriated from the general fund to
the taxation and revenue department for expenditure in fiscal
year 2009 to administer the tax credits adopted in the second
special session of the forty-eighth legislature. Any
unexpended or unencumbered balance remaining at the end of
fiscal year 2009 shall revert to the general fund.
Section 3. APPLICABILITY.--The provisions of this act
apply to taxable years beginning between January 1, 2007 and
December 31, 2007.
Section 4. EMERGENCY.--It is necessary for the public
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peace, health and safety that this act take effect
immediately.