46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT FOR PHYSICIAN-PRESCRIBED WELLNESS PROGRAM EXPENSES.

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] CREDIT FOR WELLNESS PROGRAM EXPENSES.--

A. A taxpayer who is a resident of New Mexico, who files an individual New Mexico income tax return and who is not a dependent of another taxpayer may claim a credit not to exceed four hundred dollars ($400) for qualified wellness program expenses paid during the taxable year for participation in the wellness program by the taxpayer, the taxpayer's spouse or a dependent of the taxpayer if:

(1) the expenses are not reimbursed or compensated for by insurance or otherwise;

(2) the expenses are not included in the taxpayer's itemized deductions, as defined in Section 63 of the Internal Revenue Code, for the taxable year; and

(3) participation in the wellness program has been specifically prescribed by the participant's physician.

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

C. 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 by this section that would have been allowed on a joint return.

D. As used in this section:

(1) "dependent" means dependent as defined in Section 152 of the Internal Revenue Code; and

(2) "qualified wellness program expenses" means amounts paid for cardiac or pulmonary rehabilitation programs; diabetes prevention and control programs; alcohol- and substance-abuse prevention programs; smoking cessation programs; health and fitness club memberships; supervised weight-loss programs; and supervised exercise programs."

Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2003.