SENATE BILL 8

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

INTRODUCED BY

H. Diane Snyder

AN ACT

PROVIDING FOR A CREDIT FOR MIDDLE-INCOME TAXPAYERS TO BE TAKEN AGAINST THE TAXPAYER'S STATE PERSONAL INCOME TAX IN THE AMOUNT OF FIFTY PERCENT OF THE TAXPAYER'S NATURAL GAS AND ELECTRIC BILLS.

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] MIDDLE-INCOME HOME ENERGY TAX CREDIT.--

          A. Except as otherwise provided in Subsection B of this section, a taxpayer who files a New Mexico income tax return, is a full-year or first-year resident of New Mexico, is not a trust, estate or a dependent of another taxpayer and is a customer of a utility company may claim a credit in an amount not to exceed fifty percent of the utility charges paid by the taxpayer during the taxable year for which the return is filed. The credit allowed pursuant to this section may be cited as the "middle-income home energy tax credit".

          B. A claim for the middle-income home energy tax credit provided in this section is not allowed for a resident who was an inmate of a public institution for more than six months during the taxable year for which the return seeking that credit is submitted.

          C. The tax credit allowed in this section may be credited by the department against the taxpayer's New Mexico tax liability. If the taxpayer is liable for interest or penalties on the taxpayer's income tax liability for the taxable year for which the return is submitted, the credit provided by this section may be used to offset all or a portion of the penalty and interest due.

          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 one-half of the credit that would have been allowed on a joint return.

          E. The middle-income home energy tax credit may only be deducted from the taxpayer's income tax liability for the taxable year for which the return is submitted. Any portion of the tax credit that remains unused at the end of a taxpayer's taxable year may not be carried forward.

          F. As used in this section:

                (1) "customer" means a taxpayer of New Mexico that purchases natural gas or electricity from a utility for residential use;

                (2) "dependent" means "dependent" as defined in Section 152 of the Internal Revenue Code;

                (3) "government-owned" means owned by a municipality, county or tribe;

                (4) "taxpayer" means a taxpayer whose adjusted gross income is greater than one hundred fifty percent of the federal poverty level but less than sixty thousand dollars ($60,000) for the taxable year for which the taxpayer's return is filed;

                (5) "tribe" means a federally recognized Indian nation, tribe or pueblo located in whole or in part in New Mexico;

                (6) "utility company" means a business entity that provides natural gas or electricity to residential customers located in New Mexico, which business entity may be privately or cooperatively owned and regulated by the public regulation commission or may be government-owned; and

                (7) "utility charges" means the total the taxpayer has paid to a utility company for use of electricity or natural gas for residential purposes for the taxpayer's primary residence in New Mexico."

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

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