ADOPTING A CHILD TAX CREDIT

HB 207 would expand New Mexico's adoption tax credit to apply to the adoption of any child (not just those deemed "special needs"), increasing the credit amount from $1,500 to $7,000 per adopted child. The bill allows taxpayers who adopt a child to claim this credit against their state income tax liability, with any excess credit refunded if it exceeds the tax owed. It applies to taxpayers filing individual New Mexico income tax returns who adopt a child on or after January 1, 2025. The credit would be available for each year the child qualifies as a dependent for federal tax purposes.