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

RELATING TO TAXATION; AMENDING THE INCOME TAX ACT TO PROVIDE A DEDUCTION FROM INCOME FOR AMOUNTS EXPENDED FOR HEALTH INSURANCE PREMIUMS.

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] DEDUCTION--PAYMENTS FOR HEALTH INSURANCE PREMIUMS.--

A. A taxpayer may claim a deduction from net income in an amount equal to payments for individual health insurance premiums made by the taxpayer in the taxable year for which the deduction is being claimed. The deduction may be claimed only for premium payments made for health insurance for the taxpayer or an individual who may be claimed by the taxpayer as a dependent in the taxable year for which the deduction is being claimed. A husband and wife who file separate returns for the taxable year in which they could have filed a joint return may each claim only one-half of the deduction that would have been allowed on the joint return.

B. A taxpayer may not claim the deduction provided in Subsection A of this section for amounts that have been excluded from the taxpayer's adjusted gross income for the taxable year or amounts that have been included in the itemized deductions, as defined in Section 63 of the Internal Revenue Code of 1986 as that section may be amended or renumbered, allowed the taxpayer for the taxable year.

C. For purposes of this section, "health insurance" includes medical, dental, vision and long-term care insurance."

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