New Mexico § 7-2-18.16 Credit; special needs adopted child tax credit; created;

New Mexico Statutes

§ 7-2-18.16 — Credit; special needs adopted child tax credit; created;

New Mexico § 7-2-18.16

Ch. 7Taxation

Art. 2Income Tax General Provisions

This text of New Mexico § 7-2-18.16 (Credit; special needs adopted child tax credit; created;) is published on Counsel Stack Legal Research, covering New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.M. Stat. Ann. § 7-2-18.16 (2026).

Text

qualifications; duration of credit.

A.A taxpayer who files an individual New Mexico income tax return, who is not a dependent of another taxpayer and who adopts or has adopted a special needs child may claim a credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act. The credit authorized pursuant to this section may be referred to as the "special needs adopted child tax credit".

B.A taxpayer may claim and the department may allow a special needs adopted child tax credit in the amount of one thousand five hundred dollars ($1,500) to be claimed against the taxpayer's tax liability for the taxable year imposed pursuant to the Income Tax Act.

C.A taxpayer may claim a special needs adopted child tax credit for each year that the child may be claimed as a dependent

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qualifications; duration of credit. A. A taxpayer who files an individual New Mexico income tax return, who is not a dependent of another taxpayer and who adopts or has adopted a special needs child may claim a credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act. The credit authorized pursuant to this section may be referred to as the "special needs adopted child tax credit". B. A taxpayer may claim and the department may allow a special needs adopted child tax credit in the amount of one thousand five hundred dollars ($1,500) to be claimed against the taxpayer's tax liability for the taxable year imposed pursuant to the Income Tax Act. C. A taxpayer may claim a special needs adopted child tax credit for each year that the child may be claimed as a dependent for federal taxation purposes by the taxpayer. D. If the amount of the special needs adopted child tax credit due to the taxpayer exceeds the taxpayer's individual income tax liability, the excess shall be refunded. E. Married individuals who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the special needs adopted child tax credit provided in this section that would have been allowed on a joint return. F. A taxpayer allowed a tax credit pursuant to this section shall claim the credit on forms and in a manner required by the department. G. The tax credit 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 tax credit. H. As used in this section, "special needs adopted child" means an individual who may be over eighteen years of age and who is certified by the children, youth and families department or a licensed child placement agency as meeting the definition of a "difficult to place child" pursuant to the Adoption Act [Chapter 32A, Article 5 NMSA 1978]; provided, however, if the classification as a "difficult to place child" is based on a physical or mental impairment or an emotional disturbance the physical or mental impairment or emotional disturbance shall be at least moderately disabling.