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HOUSE BILL 542
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
John Block and Angelita Mejia and Rebecca Dow
AN ACT
RELATING TO TAXATION; CREATING THE CHILDBIRTH INCOME TAX
CREDIT.
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:
"[NEW MATERIAL] CREDIT--CHILDBIRTH INCOME TAX CREDIT.--
A. A taxpayer who is a resident, who is not a
dependent of another individual and who gives birth to a child
may claim a credit against the taxpayer's tax liability imposed
pursuant to the Income Tax Act for the taxable year in which
the child is born. The credit authorized pursuant to this
section may be referred to as the "childbirth income tax
credit".
B. The amount of the tax credit shall be in an
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amount equal to seven thousand dollars ($7,000) for the taxable
year the taxpayer gives birth to a child.
C. A taxpayer shall apply for certification of
eligibility for the tax credit from the children, youth and
families department on forms and in the manner prescribed by
that department. Only one tax credit shall be certified per
taxpayer per taxable year. If the children, youth and families
department determines that the taxpayer meets the requirements
of this section, that department shall issue a dated
certificate of eligibility to the taxpayer providing the amount
of tax credit for which the taxpayer is eligible and the
taxable years in which the credit may be claimed. The
children, youth and families department shall provide the
department with the certificates of eligibility issued pursuant
to this subsection in an electronic format at regularly agreed
upon intervals.
D. That portion of the tax credit that exceeds a
taxpayer's income tax liability in the taxable year in which
the credit is claimed shall be refunded to the taxpayer.
E. A taxpayer allowed to claim a tax credit
pursuant to this section shall claim the tax credit in a manner
required by the department. The credit shall be claimed within
three taxable years of the end of the year in which the
children, youth and families department certifies the credit.
F. The credit provided by this section shall be
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included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the annual aggregate cost of the
credit."
SECTION 2. APPLICABILITY.--The provisions of this act
apply to taxable years beginning on or after January 1, 2025.
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