2023 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.
ANNOTATIONS
Cross 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.