1. A. A taxpayer who is a resident and who files an individual New Mexico income tax return may claim a credit in an amount equal to twenty percent for taxable years beginning on or after January 1, 2021, and twenty-five percent for taxable years beginning on or after January 1, 2023, of the federal earned income tax credit for which that taxpayer is eligible for the same taxable year or would have been eligible but for the identification number requirement pursuant to 26 U.S.C. 32(m), as that section may be amended or renumbered.
2. B. A taxpayer who is a resident and who files an individual New Mexico tax return may claim a credit in an amount equal to twenty percent for taxable years beginning on or after January 1, 2021, and twenty-five percent for taxable years beginning on or after January 1, 2023, of the federal earned income tax credit for which that taxpayer would have been eligible for the same taxable year but for the age requirement pursuant to 26 U.S.C. 32(c)(1)(A)(ii)(II), as that section may be amended or renumbered; provided that the taxpayer is at least eighteen years of age but has not reached the age of twenty-five.
3. C. The credit provided in this section may be referred to as the "working families tax credit".
4. D. The working families tax credit may be deducted from the income tax liability of an individual who claims the credit and qualifies for the credit pursuant to this section. If the credit exceeds the individual's income tax liability for the taxable year, the excess shall be refunded to the individual.
5. E. As used in this section, "federal earned income tax credit" means the tax credit allowed pursuant to 26 U.S.C. 32, as that section may be amended or renumbered.

History: Laws 2007, ch. 45, § 9; 2008 (2nd S.S.), ch. 4, § 1; 2019, ch. 270, § 13; 2021, ch. 116, § 2.

ANNOTATIONS

Cross references. — For Section 32 of the Internal Revenue Code, see 26 U.S.C § 32.

The 2021 amendment, effective June 18, 2021, increased the amount of the working families tax credit, and expanded the credit to certain residents who are ineligible for the federal earned income tax credit; in Subsection A, after "A", added "taxpayer who is a", after "credit in an amount equal to", changed "seventeen" to "twenty", after "percent", added "for taxable years beginning on or after January 1, 2021, and twenty-five percent for taxable years beginning on or after January 1, 2023", after "federal", added "earned", and after "same taxable year", deleted "pursuant to Section 32 of the Internal Revenue Code" and added "or would have been eligible but for the identification number requirement pursuant to 26 U.S.C. 32(m), as that section may be amended or renumbered"; added a new Subsection B and added subsection designation "C" and redesignated former Subsection B as Subsection D; and added Subsection E.

Applicability. — Laws 2021, ch. 116, § 4 provided that the provisions of Laws 2021, ch. 116, §§ 1 and 2 apply to taxable years beginning on or after January 1, 2021.

The 2019 amendment, effective June 14, 2019, increased the amount of the working families tax credit; and in Subsection A, after "amount equal to", deleted "ten" and added "seventeen".

Applicability. — Laws 2019, ch. 270, § 59 provided that the provisions of Laws 2019, ch. 270, § 13 apply to taxable years beginning on or after January 1, 2019.

The 2008 amendment, effective November 17, 2008, increased the working families tax credit from eight to ten percent of the federal income tax credit.