INCREASE CHILD INCOME TAX CREDIT

SB 294 increases New Mexico's child income tax credit for qualifying children under age six by doubling the existing credit amount for this age group. The bill adjusts the credit tiers (e.g., $600 becomes $1,200 for incomes under $25,000) based on household income, with automatic annual inflation adjustments using the Consumer Price Index. It directly affects New Mexico residents with young children who qualify for the credit under federal guidelines. The policy change applies to taxable years beginning January 1, 2025, and requires the state department to report on the credit's implementation and cost.