HOUSE BILL 382

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Gail Chasey

AN ACT

RELATING TO TAXATION; PROVIDING FOR AN INCOME TAX DEDUCTION FOR AMOUNTS PAID AS PREMIUMS FOR QUALIFIED LONG-TERM CARE INSURANCE CONTRACTS.

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] DEDUCTION--LONG-TERM CARE INSURANCE CONTRACT PREMIUMS.--

          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 individual may claim a deduction from net income for amounts paid in the taxable year as premiums for qualified long-term care insurance contracts for the benefit of the taxpayer. The deduction may not be claimed for amounts that have been included in a claim for a deduction or credit pursuant to the Internal Revenue Code or pursuant to another provision of the Income Tax Act.

          B. For the purposes of this section:

                (1) "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code, as that section may be amended or renumbered; and

                (2) "qualified long-term care insurance contract" means a qualified long-term care insurance contract as defined in Section 7702(B)(b) of the Internal Revenue Code.

         C. 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 deduction that would have been allowed on the joint return."

     Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2008.

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