A. A resident who files an individual New Mexico income tax return for taxable year 2021 by May 31, 2023 and who is not a dependent of another individual is eligible for two tax rebates pursuant to this section; provided that the resident did not receive a relief payment pursuant to Section 2 of this 2022 act.

B. For a resident who files an income tax return by May 31, 2022:

(1)     the first tax rebate shall be made as soon as possible, but no later than June 30, 2022, in the following amounts:

(a) five hundred dollars ($500) for heads of household, surviving spouses and married individuals filing joint returns; and

(b) two hundred fifty dollars ($250) for single individuals and married individuals filing separate returns; and

(2)     the second tax rebate shall be made between August 1 and August 30, 2022 in the following amounts:

(a) five hundred dollars ($500) for heads of household, surviving spouses and married individuals filing joint returns; and

(b) two hundred fifty dollars ($250) for single individuals and married individuals filing separate returns.

C. For a resident who files an income tax return for taxable year 2021 after May 31, 2022, rebates shall be made in the amounts and as provided in Subsection B of this section as soon as possible after the return is received; provided that a rebate shall not be allowed for a return filed after May 31, 2023.

D. The rebates provided by this section may be deducted from the taxpayer’s New Mexico income tax liability for taxable year 2021. If the amount of rebate exceeds the taxpayer’s income tax liability, the excess shall be refunded to the taxpayer.

E. The department may require a taxpayer to claim a rebate provided by this section on forms and in a manner required by the department.