CHILDBIRTH INCOME TAX CREDIT

HB 542 creates a $7,000 refundable income tax credit for New Mexico residents who give birth to a child during the taxable year. It directly affects new parents who are state residents, not claimed as dependents by another individual, and requires certification through the Children, Youth and Families Department. The credit is claimed within three years of certification, with any amount exceeding the taxpayer's liability refunded. The policy applies to tax years beginning January 1, 2025, and would be included in the state's tax expenditure budget. (Note: The bill was postponed indefinitely on June 3, 2025.)