SENATE BILL 117

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

INTRODUCED BY

H. Diane Snyder

AN ACT

RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT FOR HOME CARE FOR AN ILL OR DISABLED FAMILY MEMBER OVER THE AGE OF SIXTY-FIVE.

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--HOME CARE EXPENDITURES.--

          A. A New Mexico resident who files an individual New Mexico income tax return may claim, and the department may allow, a tax credit for expenditures by the taxpayer for home care in New Mexico of an ill or disabled person over the age of sixty-five who is a family member of the taxpayer. The tax credit provided by this section shall not exceed fifty percent of the actual home care expenditures of the taxpayer during the taxable year for which the return is filed that are not reimbursed or compensated for by insurance or otherwise.

          B. The credit provided pursuant to this section may be deducted from the taxpayer's New Mexico income tax liability for the taxable year. If the credit exceeds the taxpayer's income tax liability for the taxable year, the excess shall be refunded to the taxpayer.

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

          D. The credit provided pursuant to this section shall not be allowed for a home care expenditure for which a deduction or credit is claimed pursuant to the Internal Revenue Code or another provision of the Income Tax Act.

          E. As used in this section:

                (1) "family member of the taxpayer" means the taxpayer's spouse, parent, stepparent, father-in-law, mother-in-law, grandparent, child, stepchild, brother, sister, stepbrother, stepsister, half-brother, half-sister, uncle, aunt, nephew or niece, whether related by natural birth or adoption;

                (2) "home care" means care provided to a person in the home of that person or in the home of the taxpayer; and

                (3) "home care expenditure" means a direct expenditure for the provision of home care to an ill or disabled person over the age of sixty-five who is a family member of the taxpayer and includes an expenditure for:

                     (a) costs incurred in providing food, clothing and medical care to the person; and

                     (b) extra rent or utilities paid as the result of providing space for the person."

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

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