Bill > HB542

This bill creates a new Childbirth Income Tax Credit for New Mexico residents who give birth to a child, providing a substantial tax benefit designed to support new parents. Under the proposed legislation, eligible taxpayers who are not dependents of another individual and give birth to a child can claim a $7,000 tax credit for the taxable year in which the child is born. To receive the credit, taxpayers must apply for certification through the Children, Youth and Families Department, which will issue an eligibility certificate specifying the credit amount. Only one credit can be certified per taxpayer per taxable year, and if the credit amount exceeds the taxpayer's income tax liability, the excess will be refunded. Taxpayers must claim the credit within three taxable years of the certification, and the credit will be included in the state's tax expenditure budget. The bill specifies that these provisions will apply to taxable years beginning on or after January 1, 2025, providing a clear timeline for implementation of this new tax benefit.

Health and Social Services

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=542&year=25