SENATE BILL 107

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

Stuart Ingle

AN ACT

RELATING TO TAXATION; PROVIDING FOR AN INCOME TAX CREDIT FOR CASH DONATIONS TO ENTITIES THAT OPERATE FACILITIES LICENSED BY THE CHILDREN, YOUTH AND FAMILIES DEPARTMENT AS COMMUNITY HOMES.

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] COMMUNITY HOME DONATION TAX CREDIT.--

          A. A taxpayer who files a New Mexico income tax return and is not a dependent of another taxpayer is eligible for a tax credit against the taxpayer's liability pursuant to the Income Tax Act for a cash donation made by the taxpayer to an entity that operates a licensed community home. The credit provided pursuant to this section may be referred to as the "community home donation tax credit".

          B. The community home donation tax credit shall not exceed the lesser of:

                (1) fifty percent of the total amount of cash donations, as provided by Subsection A of this section, that are made by the taxpayer during the taxable year; or

                (2) two thousand five hundred dollars ($2,500).

          C. A taxpayer may claim the community home donation tax credit for the taxable year in which a cash donation to an entity that operates a licensed community home is made. Claims for the tax credit shall be considered in the order received by the department.

          D. Subject to the limitation in Subsection F of this section, the department shall allow the community home donation tax credit if the taxpayer submits:

                (1) evidence satisfactory to the secretary that the taxpayer made a cash donation to an entity that operated a licensed community home during the taxable year for which the tax credit is claimed;

                (2) evidence satisfactory to the secretary that on the date of the donation, the entity held an active, valid community home license issued by the children, youth and families department; and

                (3) any other information that the department may require, in the form it prescribes, to determine the amount of the tax credit due the taxpayer.

          E. The department shall keep a record of the amount, date and recipient of each cash donation for which a community home donation tax credit is allowed.

          F. The department shall not allow a community home donation tax credit pursuant to this section if, on the date of the department's receipt of the taxpayer's claim for credit, the total amount of credits allowed for donations made to the entity during the calendar year of the taxpayer's donation exceeds the product of fifty dollars ($50.00) multiplied by the total number of residential care days attributable to the entity during the same calendar year.

          G. The community home donation tax credit may be deducted only from the taxpayer's income tax liability. If the tax credit exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.

          H. Married individuals who file separate returns for a taxable year in which they could have filed a joint return may each claim one-half of the tax credit that would have been allowed on a joint return.

          I. A taxpayer may be allocated the right to claim a community home donation tax credit in proportion to the taxpayer's ownership interest if the taxpayer owns an interest in a business entity that is taxed for federal income tax purposes as a partnership and that business entity has met all of the requirements to be eligible for the tax credit. The total tax credit claimed by all members of the business entity shall not exceed the allowable tax credit pursuant to this section.

          J. For the purposes of this section:

                (1) "licensed community home" means a facility licensed as a community home by the children, youth and families department; and

                (2) "residential care day" means a twenty-four-hour period during which residential care is provided to a child; provided that if residential care is provided to more than one child within that period, the number of residential care days is equal to the number of children who are provided residential care within that same period."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2016.

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