HOUSE BILL 212
53rd legislature - STATE OF NEW MEXICO - second session, 2018
INTRODUCED BY
Rebecca Dow
AN ACT
RELATING TO TAXATION; CREATING THE FAMILY-FRIENDLY WORKPLACE TAX CREDIT IN THE INCOME TAX ACT AND THE CORPORATE INCOME TAX ACT.
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] FAMILY-FRIENDLY WORKPLACE INCOME TAX CREDIT.--
A. For taxable years beginning on or after January 1, 2018 and ending on or before December 31, 2027, a taxpayer who is not a dependent of another taxpayer, who has fifty or fewer permanent full-time or permanent part-time employees in New Mexico, who, during the taxable year, has received the highest level of recognition by a New Mexico statewide project developed to recognize companies that have adopted policies, including those concerning paid leave, health support, work schedules and economic support, considered family-friendly and who meets the requirements of this section may claim a credit in the amount of one thousand dollars ($1,000) per permanent full-time employee employed by the employer for at least twenty-six weeks and five hundred dollars ($500) per permanent part-time employee employed by the employer for at least twenty-six weeks against the taxpayer's tax liability imposed by the Income Tax Act. The credit provided by this section may be referred to as the "family-friendly workplace income tax credit".
B. The purpose of the family-friendly workplace income tax credit is to promote the adoption among employers of policies, including those concerning paid leave, health support, work schedules and economic support, considered family-friendly.
C. A taxpayer shall claim the family-friendly workplace income tax credit on forms and in the manner prescribed by the department.
D. That portion of a family-friendly workplace income tax credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed shall not be refunded or transferred but may be carried forward for a maximum of five 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 no more than one-half of the family-friendly workplace income tax credit that could have been claimed on a joint return.
F. A taxpayer who is an owner or a co-owner of a business entity that is treated as a pass-through entity for federal income tax purposes, including a partner in a partnership, a member of a limited liability company and a shareholder of an S corporation as defined in Section 1361 of the Internal Revenue Code, may claim the family-friendly workplace income tax credit in proportion to the taxpayer's ownership interest in the business entity if:
(1) the business entity has or the business entity and one or more other business entities in which the taxpayer owns an interest have met all of the requirements to be eligible for the credit; and
(2) the total credit amount claimed by all owners of the business entity or business entities does not exceed the amount allowed by Subsection A of this section.
G. A taxpayer allowed a family-friendly workplace income tax credit 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 family-friendly workplace income tax credit that includes the number of taxpayers approved by the department to receive the credit, the aggregate amount of credits claimed and any other information necessary to evaluate the effectiveness of the credit. The department shall present the report to the revenue stabilization and tax policy committee, the legislative finance committee and the legislative health and human services 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] FAMILY-FRIENDLY WORKPLACE CORPORATE INCOME TAX CREDIT.--
A. For taxable years beginning on or after January 1, 2018 and ending on or before December 31, 2027, a taxpayer that is not a dependent of another taxpayer, that has fifty or fewer permanent full-time or permanent part-time employees in New Mexico, that, during the taxable year, has received the highest level of recognition by a New Mexico statewide project developed to recognize companies that have adopted policies, including those concerning paid leave, health support, work schedules and economic support, considered family-friendly and that meets the requirements of this section may claim a credit in the amount of one thousand dollars ($1,000) per permanent full-time employee employed by the employer for at least twenty-six weeks and five hundred dollars ($500) per permanent part-time employee employed by the employer for at least twenty-six weeks against the taxpayer's tax liability imposed by the Corporate Income Tax Act. The credit provided by this section may be referred to as the "family-friendly workplace corporate income tax credit".
B. The purpose of the family-friendly workplace corporate income tax credit is to promote the adoption among employers of policies, including those concerning paid leave, health support, work schedules and economic support, considered family-friendly.
C. A taxpayer shall claim the family-friendly workplace corporate income tax credit on forms and in the manner prescribed by the department.
D. That portion of a family-friendly workplace corporate income tax credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed shall not be refunded or transferred but may be carried forward for a maximum of five consecutive taxable years.
E. A taxpayer allowed a family-friendly workplace corporate income tax credit 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 family-friendly workplace corporate income tax credit that includes the number of taxpayers approved by the department to receive the credit, the aggregate amount of credits claimed and any other information necessary to evaluate the effectiveness of the credit. The department shall present the report to the revenue stabilization and tax policy committee, the legislative finance committee and the legislative health and human services 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."
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