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

RELATING TO TAXATION; PROVIDING A TAX CREDIT FOR EMPLOYER VEHICLES USED TO TRANSPORT EMPLOYEES EARNING LESS THAN TWENTY THOUSAND DOLLARS ($20,000) PER YEAR; ENACTING SECTIONS OF THE NMSA 1978.

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] EMPLOYEE TRANSPORTATION TAX CREDIT.--

A. An employer who is a taxpayer filing an income tax return pursuant to the Income Tax Act may claim a credit against the taxpayer's income tax liability in an amount equal to the actual mileage accrued providing transportation for employees to and from work with the taxpayer at the internal revenue standard mileage rate for transportation provided to the taxpayer's employees who earn less than twenty thousand dollars ($20,000) per year from that taxpayer. The tax credit created in this subsection may be cited as the "employee transportation tax credit".

B. The taxpayer claiming a tax credit pursuant to this section shall provide to the department actual odometer readings for the miles that a vehicle was in use transporting eligible employees and other verification as required by the department of the mileage accrued in transporting employees to and from work.

C. Nothing in this section creates a liability on the part of a taxpayer to an employee for wages or other compensation:

(1) for the time an employee spends in transit to or from his place of employment in a vehicle provided by the taxpayer; or

(2) for the time an employee may possess a vehicle provided to the employee by the taxpayer."

Section 2. A new section of the Corporate Income and Franchise Tax Act is enacted to read:

"[NEW MATERIAL] CORPORATE EMPLOYEE TRANSPORTATION TAX CREDIT.--

A. A taxpayer filing a tax return pursuant to the Corporate Income and Franchise Tax Act may claim a credit against the taxpayer's corporate income tax liability in an amount equal to the actual mileage accrued providing transportation for employees to and from work with the taxpayer at the internal revenue standard mileage rate for transportation provided to the taxpayer's employees who earn less than twenty thousand dollars ($20,000) per year from that taxpayer. The tax credit created in this subsection may be cited as the "corporate employee transportation tax credit".

B. The taxpayer claiming a tax credit pursuant to this section shall provide to the department actual odometer readings for the miles that a vehicle was in use transporting eligible employees and other verification as required by the department of the mileage accrued in transporting employees to and from work to the department.

C. Nothing in this section creates a liability on the part of a taxpayer to an employee for wages or other compensation:

(1) for the time an employee spends in transit to or from his place of employment in a vehicle provided by the taxpayer; or

(2) for the time an employee may possess a vehicle provided to the employee by the taxpayer."

Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2001.