HOUSE BILL 201
54th legislature - STATE OF NEW MEXICO - first session, 2019
INTRODUCED BY
Cathrynn N. Brown
AN ACT
RELATING TO TAXATION; CREATING AN OPTIONAL DESIGNATION FOR A PERSONAL INCOME TAX CONTRIBUTION TO COUNTY ROAD FUNDS; CREATING THE COUNTY ROAD FUND DONATION INCOME TAX CREDIT AND THE COUNTY ROAD FUND DONATION CORPORATE INCOME TAX CREDIT.
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] OPTIONAL DESIGNATION OF TAX REFUND CONTRIBUTION--COUNTY ROAD FUNDS.--
A. Any individual whose state income tax liability after application of allowable credits and tax rebates in any year is lower than the amount of money held by the department to the credit of such individual for that tax year may designate any portion of the income tax refund due to the individual to be paid to a county road fund. In the case of a joint return, both individuals shall make such a designation.
B. The department shall revise the state income tax form to allow the designation of such contributions in the following form:
"County Road Fund - Check [ ] if you wish to contribute a part or all of your tax refund to the county road fund of _________ county. Enter here $_________ the amount of your contribution.".
C. The provisions of this section do not apply to income tax refunds subject to interception under the provisions of the Tax Refund Intercept Program Act, and any designation made under the provisions of this section to such refunds is void."
SECTION 2. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] COUNTY ROAD FUND DONATION INCOME TAX CREDIT.--
A. A taxpayer who is not a dependent of another individual and who donates to a county road fund may apply for, and the department may allow, a credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act in an amount not to exceed one million dollars ($1,000,000). The tax credit provided by this section may be referred to as the "county road fund donation income tax credit".
B. A taxpayer may claim a county road fund donation income tax credit for the taxable year in which the taxpayer donates to a county road fund. To receive the tax credit, a taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include evidence that the taxpayer made a donation as required by this section.
C. That portion of a county road fund donation income tax credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed shall not be refundable.
D. Married individuals filing separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the county road fund donation income tax credit that would have been claimed on a joint return.
E. A taxpayer may be allocated the right to claim a county road fund donation income 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 or limited liability company and that business entity has met all of the requirements to be eligible for the credit.
F. A taxpayer allowed a tax credit pursuant to this section shall report the amount of the credit to the department in a manner required by the department.
G. The department shall compile an annual report on the county road fund donation income tax credit that shall include the number of taxpayers approved by the department to receive the credit, the aggregate amount of credits approved and any other information necessary to evaluate the cost of the credit. The department shall compile and present the report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost of the tax credit."
SECTION 3. A new section of the Corporate Income and Franchise Tax Act is enacted to read:
"[NEW MATERIAL] COUNTY ROAD FUND DONATION CORPORATE INCOME TAX CREDIT.--
A. A taxpayer that files a New Mexico corporate income tax return that donates to a county road fund may apply for, and the department may allow, a credit against the taxpayer's tax liability imposed pursuant to the Corporate Income and Franchise Tax Act in an amount not to exceed one million dollars ($1,000,000). The tax credit provided by this section may be referred to as the "county road fund donation corporate income tax credit".
B. A taxpayer may claim a county road fund donation corporate income tax credit for the taxable year in which the taxpayer donates to a county road fund. To receive the tax credit, a taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include evidence that the taxpayer made a donation as required by this section.
C. That portion of a county road fund donation corporate income tax credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed shall not be refundable.
D. A taxpayer allowed a tax credit pursuant to this section shall report the amount of the credit to the department in a manner required by the department.
E. The department shall compile an annual report on the county road fund donation corporate income tax credit that shall include the number of taxpayers approved by the department to receive the credit, the aggregate amount of credits approved and any other information necessary to evaluate the cost of the credit. The department shall compile and present the report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost of the tax credit."
SECTION 4. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2019.
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