NM Stat § 7-2-14 (2021)
2021 New Mexico Statutes|Chapter 7 - Taxation|Article 2 - Income Tax General Provisions|Section 7-2-14 - Low-income comprehensive tax rebate.

A. Except as otherwise provided in Subsection B of this section, any resident who files an individual New Mexico income tax return and who is not a dependent of another individual may claim a tax rebate for a portion of state and local taxes to which the resident has been subject during the taxable year for which the return is filed. The tax rebate may be claimed even though the resident has no income taxable under the Income Tax Act. 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 tax rebate that would have been allowed on a joint return.B. No claim for the tax rebate provided in this section shall be filed by a resident who was an inmate of a public institution for more than six months during the taxable year for which the tax rebate could be claimed or who was not physically present in New Mexico for at least six months during the taxable year for which the tax rebate could be claimed.C. For the purposes of this section, the total number of exemptions for which a tax rebate may be claimed or allowed is determined by adding the number of federal exemptions allowable for federal income tax purposes for each individual included in the return who is domiciled in New Mexico plus two additional exemptions for each individual domiciled in New Mexico included in the return who is sixty-five years of age or older plus one additional exemption for each individual domiciled in New Mexico included in the return who, for federal income tax purposes, is blind plus one exemption for each minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident.D. Except as provided in Subsection F of this section, the tax rebate provided for in this section may be claimed in the amount shown in the following table: || Modified gross income is:   And the total number of exemptions is:  ||     But Not                       6 or  || Over    Over   1   2   3   4   5   More  || $ 0   $ 1,000   $ 195   $ 260   $ 325   $ 390   $ 455   $ 520  || 1,000   1,500   220   315   405   505   570   675  || 1,500   2,500   220   315   405   505   570   705  || 2,500   7,500   220   315   405   505   570   730  || 7,500   8,000   205   310   390   495   575   730  || 8,000   9,000   185   285   375   480   575   700  || 9,000   10,000   170   250   340   425   510   665  || 10,000   11,500   145   210   275   360   445   600  || 11,500   13,000   130   185   235   295   365   480  || 13,000   14,500   115   170   220   275   315   390  || 14,500   16,500   105   155   185   235   285   335  || 16,500   18,000   100   130   165   210   250   300  || 18,000   19,500   90   115   145   180   220   260  || 19,500   21,000   80   105   140   165   185   230  || 21,000   23,000   80   105   140   165   185   230  || 23,000   24,500   75   100   120   145   170   195  || 24,500   26,000   65   90   115   140   155   180  || 26,000   27,500   55   80   105   130   140   170  || 27,500   29,500   50   75   100   115   130   155  || 29,500   31,000   40   55   80   100   115   130  || 31,000   32,500   35   50   65   80   100   105  || 32,500   34,000   25   40   50   65   80   90  || 34,000   36,000   15   35   40   55   65   75.  ||         |E. If a taxpayer's modified gross income is zero, the taxpayer may claim a credit in the amount shown in the first row of the table appropriate for the taxpayer's number of exemptions as adjusted by the provisions of Subsection F of this section.F. For the 2022 taxable year and each subsequent taxable year, the amount of rebate shown in the table in Subsection D of this section shall be adjusted to account for inflation. The department shall make the adjustment by multiplying each amount of rebate by a fraction, the numerator of which is the consumer price index ending during the prior taxable year and the denominator of which is the consumer price index ending in tax year 2021. The result of the multiplication shall be rounded down to the nearest one dollar ($1.00), except that if the result would be an amount less than the corresponding amount for the preceding taxable year, then no adjustment shall be made. G. The tax rebates provided for in this section may be deducted from the taxpayer's New Mexico income tax liability for the taxable year. If the tax rebates exceed the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.H. For purposes of this section:(1) "consumer price index" means the consumer price index for all urban consumers published by the United States department of labor for the month ending September 30; and(2) "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code of 1986, as that section may be amended or renumbered, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident.History: 1953 Comp., § 72-15A-11.1, enacted by Laws 1972, ch. 20, § 2; 1973, ch. 336, § 1; 1974, ch. 17, § 1; 1975, ch. 213, § 1; 1977, ch. 197, § 1; 1978, ch. 145, § 1; 1981, ch. 37, § 24; 1986, ch. 20, § 29; 1986 (3d S.S.), ch. 1, § 1; 1987, ch. 264, § 7; 1990, ch. 49, § 8; 1992, ch. 78, § 2; 1994, ch. 5, § 21; 1998, ch. 99, § 2; 2021, ch. 116, § 1. ANNOTATIONSCross references. — For Section 152 of the Internal Revenue Code, see 26 U.S.C.S. § 1152. The 2021 amendment, effective June 18, 2021, increased and indexed the low-income comprehensive tax rebate, and defined "consumer price index" for purposes of this section; in Subsection D, added "Except as provided in Subsection F of this section", and completely rewrote the tax rebate table; in Subsection E, after "number of exemptions", added "as adjusted by the provisions of Subsection F of this section."; added a new Subsection F and redesignated former Subsections F and G as Subsections G and H, respectively; and in Subsection H, added Paragraph H(1) and added new paragraph designation "(2)".Applicability. — Laws 2021, ch. 116, § 4 provided that the provisions of Laws 2021, ch. 116, §§ 1 and 2 apply to taxable years beginning on or after January 1, 2021. The 1998 amendment, rewrote the tax rebate table in Subsection D. Laws 1998, ch. 99, contains no effective date provision, but pursuant to N.M. Const., art. IV, § 23, is effective May 20, 1998, 90 days after adjournment of the legislature. The 1994 amendment, effective May 18, 1994, deleted "tax rebates for food and medical expenses" at the end of the section heading, and substituted the table in Subsection D for the former table. The 1992 amendment, effective May 20, 1992, added present Subsection E; redesignated former Subsections E and F as present Subsections F and G; and inserted "of 1986" near the beginning of Subsection G. The 1990 amendment, effective May 16, 1990, added the language beginning "plus one exemption for each minor child" at the end of Subsection C and added Subsection F. Law reviews. — For article, "An Intergovernmental Approach to Tax Reform," see 4 N.M.L. Rev. 189 (1974). Am. Jur. 2d, A.L.R. and C.J.S. references. — 71 Am. Jur. 2d State and Local Taxation §§ 549 to 551. 84 C.J.S. Taxation §§ 60 to 68; 85 C.J.S. Taxation §§ 1738 to 1755.