NMSA 1978, § 7-2-18.16 — 7-2-18.16

Credit; special needs adopted child tax credit; created;
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.