SENATE BILL 313

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Mark Boitano

AN ACT

RELATING TO TAXATION; CREATING AN INCOME TAX CREDIT FOR ADOPTIVE PARENTS.

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--ADOPTED CHILD.-- 

          A. A resident who is a taxpayer, who files an individual New Mexico income tax return and who is not a dependent of another taxpayer may claim a credit following the adoption of a child by the resident.

          B. The credit provided in this section shall be a maximum of five hundred dollars ($500) per taxable year per adopted child and may be claimed for each of the first five years following the adoption of a child, provided the child is eighteen years of age or less during the taxable year in which the credit is claimed.

          C. The credit provided in this section may be deducted from the taxpayer's New Mexico income tax liability for the taxable year. The credit is not refundable, and excess above the taxpayer's tax liability for the current year cannot be carried over to be claimed in subsequent taxable years.

          D. A husband and wife who have adopted a child within the prior five taxable years and who file separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the credit that would have been claimed on a joint return.

          E. As used in this section:

                (1) "adopt" means to create a parent-child relationship by law between an adult and a child who are not in fact biologically parent and child;

                (2) "child" means an individual from birth through eighteen years of age; and

                (3) "qualifying adopted child" means a child that has been adopted within the prior five tax years."

     Section 2. APPLICABILITY.--The provisions of this act are applicable to a taxable year beginning on or after January 1, 2008.

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