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

RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT FOR EMPLOYERS FOR A PORTION OF THE COST OF PROVIDING PAID FAMILY MEDICAL LEAVE.

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--EMPLOYEE FAMILY MEDICAL LEAVE PAID BY EMPLOYER.--

A. A taxpayer who is an employer and who files an individual New Mexico income tax return may claim a credit in an amount equal to twenty-five percent of the amount paid by the taxpayer in a taxable year for the salary or wage costs incurred in providing paid family medical leave to an employee.

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 that would have been allowed on a joint return.

C. A taxpayer who otherwise qualifies and claims a credit pursuant to Subsection A of this section and is a member of a partnership or business association that is the employer incurring the family medical leave cost may claim a credit only in proportion to the taxpayer's interest in the partnership or association. The total credit claimed by all members of the partnership or association shall not exceed twenty-five percent of the family medical leave cost paid by the partnership or association in the taxable year.

D. The credit provided in this section may only be deducted from the taxpayer's income tax liability for the taxable year for which the credit is claimed.

E. For the purposes of this section, "family medical leave" means leave taken by an employee in connection with:

(1) the birth or adoption of a child of the employee; or

(2) the care of a child, spouse or parent of the employee who has a health condition that:

(a) necessitates inpatient care in a hospital, hospice or residential health care facility; or

(b) requires continuing treatment or continuing supervision by a health care provider."

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

"[NEW MATERIAL] CREDIT--EMPLOYEE FAMILY MEDICAL LEAVE PAID BY EMPLOYER.--

A. A taxpayer that is an employer and that files a corporate income tax return may claim a credit in an amount equal to twenty-five percent of the amount paid by the taxpayer in a taxable year for the salary or wage costs incurred in providing paid family medical leave to an employee.

B. A taxpayer that otherwise qualifies and claims a credit pursuant to Subsection A of this section and is a member of a partnership or business association that is the employer incurring the family medical leave cost may claim a credit only in proportion to the taxpayer's interest in the partnership or association. The total credit claimed by all members of the partnership or association shall not exceed twenty-five percent of the family medical leave cost paid by the partnership or association in the taxable year.

C. The credit provided in this section may only be deducted from the taxpayer's corporate income tax liability for the taxable year for which the credit is claimed.

D. For the purposes of this section, "family medical leave" means leave taken by an employee in connection with:

(1) the birth or adoption of a child of the employee; or

(2) the care of a child, spouse or parent of the employee who has a health condition that:

(a) necessitates inpatient care in a hospital, hospice or residential health care facility; or

(b) requires continuing treatment or continuing supervision by a health care provider."

Section 3. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2003.