Bill > HB207

This bill expands and modifies the existing tax credit for child adoption in New Mexico by removing the previous "special needs" designation and making the tax credit available for all child adoptions. The bill increases the tax credit amount from $1,500 to $7,000 per adopted child and changes the definition of an eligible child to be an individual under 18 years old, removing the previous complex requirements related to being a "difficult to place child" with specific disabilities. Taxpayers can claim this credit for each year the adopted child can be claimed as a dependent for federal tax purposes, and if the credit amount exceeds the taxpayer's income tax liability, the excess will be refunded. Married couples filing separately can each claim half of the credit they would have been eligible for on a joint return. The bill requires the tax credit to be included in the tax expenditure budget and will apply to taxable years beginning on or after January 1, 2025, making it easier and more financially beneficial for families to adopt children in New Mexico.

Health and Social Services

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=207&year=25