45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO TAXATION; ENACTING A SECTION OF THE INCOME TAX ACT TO PROVIDE A ONE-TIME NON-REFUNDABLE 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] ONE-TIME TAX CREDIT.--

A. A resident who files an individual New Mexico income tax return for the taxable year beginning in 2001 and who is not a dependent of another taxpayer may claim a credit for taxes paid in an amount equal to five percent of the resident's New Mexico income tax liability for the taxable year.

B. 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 amount of the credit that would have been allowed on a joint return.

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

D. As used in this section, "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code."

Section 2. DELAYED REPEAL.--Section 1 of this act is repealed effective January 1, 2005.

Section 3. APPLICABILITY.--The provisions of this act apply to taxable years beginning in 2001.