SENATE BILL 436

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

INTRODUCED BY

Timothy Z. Jennings

AN ACT

RELATING TO TAXATION; CREATING INCOME TAX AND CORPORATE INCOME TAX CREDITS FOR EXPENSES PAID TO LICENSED NURSING HOMES, LICENSED INTERMEDIATE CARE FACILITIES FOR THE MENTALLY RETARDED AND LICENSED RESIDENTIAL TREATMENT CENTERS.

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] INCOME TAX--CREDIT FOR NURSING HOME EXPENSES.--

          A. A taxpayer who files an individual New Mexico income tax return and who is not a dependent of another taxpayer may claim a credit for expenses that the taxpayer incurred and paid to a licensed nursing home, licensed intermediate care facility for the mentally retarded or licensed residential treatment center during the taxable year. The credit shall not exceed ten dollars ($10.00) for each day that expenses for services from the licensed nursing home, licensed intermediate care facility for the mentally retarded or licensed residential treatment center accrued against the taxpayer.

          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. The credit provided in this section may only be deducted from the taxpayer's income tax liability. Any portion of the tax credit provided by this section that remains unused at the end of a taxable year may be carried forward for four consecutive years."

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

     "[NEW MATERIAL] CORPORATE INCOME TAX--CREDIT FOR NURSING HOME EXPENSES.--

          A. A taxpayer who files a corporate income tax return may claim a credit for expenses that the taxpayer incurred and paid to a licensed nursing home, licensed intermediate care facility for the mentally retarded or licensed residential treatment center during the taxable year. The credit shall not exceed ten dollars ($10.00) for each day that expenses for services from a licensed nursing home, licensed intermediate care facility for the mentally retarded or licensed residential treatment center accrued against the taxpayer.

          B. The credit provided in this section may only be deducted from the taxpayer's corporate income tax liability. Any portion of the tax credit provided by this section that remains unused at the end of a taxable year may be carried forward for four consecutive years."

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

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