1. A. As long as the exemption amount pursuant to Section 151 of the Internal Revenue Code means zero, a taxpayer who is not a dependent of another individual and files a return as a head of household or married filing jointly may claim a deduction from net income in an amount equal to the product of four thousand dollars ($4,000) multiplied by the difference between the number of dependents claimed on the taxpayer's return and one.
2. B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction to the department in a manner required by the department.
3. C. The deduction provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the deduction.
4. D. As used in this section, "dependent" means "dependent" as defined in Section 152 of the Internal Revenue Code.

History: Laws 2019, ch. 270, § 15; 2025, ch. 130, § 51.

ANNOTATIONS

The 2025 amendment, effective January 1, 2026, revised reporting requirements; in Subsection C, after the subsection designation, deleted "The department shall compile an annual report on the deduction provided by this section that shall include the number of taxpayers that claimed the deduction, the aggregate amount of deductions claimed and any other information necessary to evaluate the effectiveness of the deduction. The department shall present the annual report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of" and added "The deduction provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate".

Cross references. — For Sections 151 and 152 of the Internal Revenue Code, see 26 U.S.C. §§ 151 and 152 respectively.

Applicability. — Laws 2019, ch. 270, § 59 provided that Laws 2019, ch. 270, § 15 apply to taxable years beginning on or after January 1, 2019.