45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT FOR CERTAIN FAMILY CAREGIVERS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the Income Tax Act is enacted to read:

"[NEW MATERIAL] CREDIT--FAMILY CAREGIVERS.--

A. For gross receipts taxes paid on the expenditures made to care for children of family members who are not dependents, a resident who files an individual New Mexico income tax return and who is not a dependent of another individual may claim a credit in the amount of two hundred dollars ($200) for each child who is not a dependent of the resident for federal income tax purposes, but who is a relative of the resident and is cared for by the resident in the resident's home for more than ten hours each week for at least six months during the taxable year.

B. A husband and wife 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.

C. The tax credit provided 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.

D. As used in this section:

(1) "child" means an individual who is less than eighteen years old;

(2) "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code; and

(3) "relative" means a child who is a resident's grandchild, great-grandchild, stepgrandchild, step great-grandchild, niece or nephew or the son or daughter of a son- or daughter-in-law, brother- or sister-in-law, half-brother, half-sister, stepbrother or stepsister."

Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after July 1, 2001.