HOUSE BILL 282

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

Nate Gentry and Mimi Stewart

AN ACT

RELATING TO TAXATION; CREATING THE GENDER PAY EQUITY INCOME TAX CREDIT AND THE GENDER PAY EQUITY CORPORATE INCOME TAX CREDIT.

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] GENDER PAY EQUITY INCOME TAX CREDIT.--

          A. A taxpayer who is not a dependent of another individual, who employs men and women and who provides one hundred percent gender pay equity in the employment of the taxpayer's employees may apply for, and the department may allow, a credit in an amount equal to five thousand dollars ($5,000) against the taxpayer's tax liability imposed pursuant to the Income Tax Act. The tax credit provided by this section may be referred to as the "gender pay equity income tax credit".

          B. To be eligible to claim a gender pay equity income tax credit, the taxpayer shall apply for a certificate of eligibility from the human rights commission that certifies the taxpayer has provided one hundred percent gender pay equity in the employment of the taxpayer's employees in the previous calendar year. The taxpayer shall apply to the commission on forms and in the manner prescribed by the commission. To determine if a taxpayer has provided one hundred percent gender pay equity, the commission shall consider job classifications using categories determined by the commission, the part-time or full-time status of the employees, the total number of hours worked by each employee and the total compensation for each employee in the previous calendar year. If the commission determines that the taxpayer meets the requirements of this section, the commission shall issue a certificate of eligibility to the taxpayer.

          C. A taxpayer may claim a gender pay equity income tax credit within one calendar year of being certified pursuant to Subsection B of this section. To receive a gender pay equity income tax credit, a taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include a certification made pursuant to Subsection B of this section.

          D. That portion of a gender pay equity income tax credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed may be carried forward for a maximum of three consecutive taxable years.

          E. Married individuals filing separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the gender pay equity income tax credit that would have been claimed on a joint return.

          F. A taxpayer may be allocated the right to claim a gender pay equity income tax credit in proportion to the taxpayer's ownership interest if the taxpayer owns an interest in a business entity that is taxed for federal income tax purposes as a partnership and that business entity has met all of the requirements to be eligible for the credit. The total credit claimed by all members of the partnership or by a limited liability company shall not exceed the allowable credit pursuant to Subsection A of this section.

          G. A taxpayer allowed a credit pursuant to this section shall report the amount of the credit to the department in a manner required by the department.

          H. The department shall compile an annual report on the gender pay equity income tax credit that shall include the number of taxpayers approved by the department to receive the credit, the aggregate amount of credits approved and any other information necessary to evaluate the effectiveness of the credit. The department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the credit and whether the credit is performing the purpose for which it was created."

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

     "[NEW MATERIAL] GENDER PAY EQUITY CORPORATE INCOME TAX CREDIT.--

          A. A taxpayer that employs men and women and that provides one hundred percent gender pay equity in the employment of the taxpayer's employees may apply for, and the department may allow, a credit in an amount equal to five thousand dollars ($5,000) against the taxpayer's tax liability imposed pursuant to the Corporate Income and Franchise Tax Act. The tax credit provided by this section may be referred to as the "gender pay equity corporate income tax credit".

          B. To be eligible to claim a gender pay equity corporate income tax credit, the taxpayer shall apply for a certificate of eligibility from the human rights commission that certifies the taxpayer has provided one hundred percent gender pay equity in the employment of the taxpayer's employees in the previous calendar year. The taxpayer shall apply to the commission on forms and in the manner prescribed by the commission. To determine if a taxpayer has provided one hundred percent gender pay equity, the commission shall consider job classifications using categories determined by the commission, the part-time or full-time status of the employees, the total number of hours worked by each employee and the total compensation for each employee in the previous calendar year. If the commission determines that the taxpayer meets the requirements of this section, the commission shall issue a certificate of eligibility to the taxpayer.

          C. A taxpayer may claim a gender pay equity corporate income tax credit within one calendar year of being certified pursuant to Subsection B of this section. To receive a gender pay equity corporate income tax credit, a taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include a certification made pursuant to Subsection B of this section.

          D. That portion of a gender pay equity corporate income tax credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed may be carried forward for a maximum of three consecutive taxable years.

          E. A taxpayer allowed a credit pursuant to this section shall report the amount of the credit to the department in a manner required by the department.

          F. The department shall compile an annual report on the gender pay equity corporate income tax credit that shall include the number of taxpayers approved by the department to receive the credit, the aggregate amount of credits approved and any other information necessary to evaluate the effectiveness of the credit. The department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the credit and whether the credit is performing the purpose for which it was created."

     SECTION 3. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2016.

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