44th legislature - STATE OF NEW MEXICO - second session, 2000

RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT FOR CERTAIN MOTOR VEHICLE INSURANCE PREMIUMS PAID.

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] TAX CREDIT--MOTOR VEHICLE INSURANCE PREMIUMS PAID.--

A. A taxpayer who files an individual New Mexico income tax return and is not a dependent of another taxpayer may claim a credit for motor vehicle insurance premiums paid during the taxable year for coverage for the taxpayer, the taxpayer's spouse or a dependent as necessary to comply with the provisions of the Mandatory Financial Responsibility Act. The credit may be claimed in an amount equal to one-half of the premiums paid during the taxable year, not to exceed one hundred dollars ($100).

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 credit provided in this section that would have been allowed on a joint return.

C. The credit provided in this section may only be deducted from the taxpayer's New Mexico income tax liability for the taxable year."

Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2000.