HOUSE BILL 435

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Debbie A. Rodella

AN ACT

RELATING TO TAXATION; PERMITTING INCOME TAX AND CORPORATE INCOME TAX CREDITS FOR COMMUTER HIGHWAY TRANSIT SERVICES AND QUALIFIED PARKING SERVICES.

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] CREDITS--COMMUTER HIGHWAY TRANSIT SERVICES--QUALIFIED PARKING.--

          A. A taxpayer who files an individual New Mexico income tax return, who is not a dependent of another individual and who provides a commuter highway transit service may claim a credit in an amount equal to one hundred dollars ($100) for each month that the taxpayer provides the service.

          B. A taxpayer who files an individual New Mexico income tax return, who is not a dependent of another individual and who provides qualified parking may claim a credit in an amount equal to one hundred eighty dollars ($180) for each month that the taxpayer provides qualified parking.

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

          D. 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 credits provided in this section that would have been allowed on a joint return.

          E. A taxpayer who otherwise qualifies and claims a credit pursuant to this section for commuter highway transit services or qualified parking provided by a partnership, limited liability partnership or other business association of which the taxpayer is a member may claim that credit only in proportion to the taxpayer's interest in the partnership, limited liability partnership or association.

          F. For the purposes of this section, "commuter highway transit service" means a service provided for the purpose of transporting employees in connection with travel to and from their places of employment in a vehicle:

                (1) of which eighty percent or more of the mileage is used for the purpose of transporting employees in connection with travel between their homes and places of employment;

                (2) that has a seating capacity of at least six adults; and

                (3) that transports three or more passengers per trip.

          G. For the purposes of this section, "qualified parking" means a parking space provided to an employee on an area from which the employee is transported by a commuter transport service."

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

     "[NEW MATERIAL] CREDITS--COMMUTER HIGHWAY TRANSIT SERVICES--QUALIFIED PARKING.--

          A. A taxpayer that files a corporate income tax return and provides a commuter highway transit service may claim a credit in an amount equal to one hundred dollars ($100) for each month that the taxpayer provides the service.

          B. A taxpayer that files a corporate income tax return and provides qualified parking may claim a credit in an amount equal to one hundred eighty dollars ($180) for each month that the taxpayer provides qualified parking.

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

          D. A taxpayer that otherwise qualifies and claims a credit pursuant to this section for commuter highway transit services or qualified parking provided by a corporation, limited liability corporation, S corporation or other business association may claim that credit only in proportion to the taxpayer's interest in the corporation, limited liability corporation, S corporation or business association.

          E. For the purposes of this section, "commuter highway transit service" means a service provided for the purpose of transporting employees in connection with travel to and from their places of employment in a vehicle:

                (1) of which eighty percent or more of the mileage is used for the purpose of transporting employees in connection with travel between their homes and places of employment;

                (2) that has a seating capacity of at least six adults; and

                (3) that transports three or more passengers per trip.

          F. For the purposes of this section, "qualified parking" means a parking space provided to an employee on an area from which the employee is transported by a commuter transport service."

     Section 3. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2004.

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