0001|                            HOUSE BILL 264
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0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003|                            INTRODUCED BY
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0004|                              TED HOBBS
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0005|     
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0006|                                   
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0007|     
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0008|     
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO TAXATION; PROVIDING INCOME TAX CREDITS FOR
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0012|     EMPLOYMENT OF YOUTH PARTICIPATING IN CERTIFIED SCHOOL-TO-WORK
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0013|     PROGRAMS.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          Section 1.  A new section of the Income Tax Act is enacted
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0017|     to read:
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0018|          "[<u>NEW MATERIAL</u>]  JOB MENTORSHIP TAX CREDIT.--
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0019|               A.  To encourage New Mexico businesses to hire youth
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0020|     participating in certified school-to-work programs, any
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0021|     taxpayer who is a New Mexico business, who files an individual
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0022|     New Mexico income tax return and who is not a dependent of
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0023|     another individual may claim a credit in an amount equal to
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0024|     fifty percent of gross wages paid to qualified students who are
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0025|     participants in a certified school-to-work program and who are
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0001|     employed by the taxpayer during the taxable year for which the
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0002|     return is filed.  The tax credit may be known as the "job
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0003|     mentorship tax credit".
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0004|               B.  A taxpayer may claim the credit provided in this
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0005|     section for each taxable year in which the taxpayer employs one
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0006|     or more qualified students who are participants in a certified
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0007|     school-to-work program.  The maximum aggregate credit allowable
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0008|     shall not exceed fifty percent of the gross wages paid to not
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0009|     more than ten qualified students employed by the taxpayer for
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0010|     up to three hundred twenty hours of employment of each
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0011|     qualified student in each taxable year for a maximum of three
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0012|     taxable years for each qualified student.
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0013|               C.  The number of qualified students whose
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0014|     employment qualifies for a job mentorship tax credit shall be
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0015|     limited to a pilot program of one thousand qualified students. 
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0016|     To claim the credit under this section, the taxpayer must
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0017|     submit with his claim evidence satisfactory to the secretary
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0018|     that the superintendent of public instruction has certified
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0019|     that the employees are qualified students who are participants
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0020|     in the pilot program and that the students were employed by the
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0021|     taxpayer during the taxable year for which the credit is
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0022|     claimed.
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0023|               D.  The credit provided under this section may only
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0024|     be deducted from the taxpayer's New Mexico income tax liability
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0025|     for the taxable year.  Any portion of the maximum tax credit
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0001|     provided by this section that remains unused at the end of the
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0002|     taxpayer's taxable year may be carried forward for three
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0003|     consecutive taxable years; provided, the total tax credits
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0004|     claimed under this section shall not exceed the maximum
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0005|     allowable under Subsection B of this section.
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0006|               E.  A husband and wife who file separate returns for
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0007|     a taxable year in which they could have filed a joint return
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0008|     may each claim only one-half of the credit that would have been
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0009|     allowed on a joint return.
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0010|               F.  A taxpayer who otherwise qualifies and claims a
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0011|     job mentorship tax credit for employment of qualified students
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0012|     by a partnership or other business association of which the
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0013|     taxpayer is a member may claim a credit only in proportion to
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0014|     his interest in the partnership or association.  The total
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0015|     credit claimed by all members of the partnership or association
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0016|     shall not exceed the maximum tax credit allowable under
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0017|     Subsection B of this section.
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0018|               G.  As used in this section:
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0019|                    (1)  "certified school-to-work program" means a
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0020|     summer employment program certified by the state department of
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0021|     public education as a school-to-work program designed for
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0022|     secondary school students to create academic and career goals
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0023|     and objectives and find employment in a job meeting those goals
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0024|     and objectives;
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0025|                    (2)  "New Mexico business" means a partnership,
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0001|     limited partnership, limited liability company or sole
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0002|     proprietorship that carries on a trade or business in New
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0003|     Mexico and that employs in New Mexico less than three hundred
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0004|     full-time employees at any one time during the taxable year;
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0005|     and
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0006|                    (3)  "qualified student" means an individual
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0007|     who is at least fourteen years of age but not more than twenty-
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0008|     one years of age who is attending full time an accredited New
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0009|     Mexico secondary school and who is a participant in a certified
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0010|     school-to-work program."
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0011|          Section 2.  A new section of the Corporation Income and
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0012|     Franchise Tax Act is enacted to read:
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0013|          "[<u>NEW MATERIAL</u>]  JOB MENTORSHIP TAX CREDIT.--
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0014|               A.  To encourage New Mexico businesses to hire youth
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0015|     participating in certified school-to-work programs, any
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0016|     taxpayer who is a New Mexico business and who files a corporate
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0017|     income tax return may claim a credit in an amount equal to
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0018|     fifty percent of gross wages paid to qualified students who are
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0019|     participants in a certified school-to-work program and who are
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0020|     employed by the taxpayer during the taxable year for which the
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0021|     return is filed.  The tax credit may be known as the "job
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0022|     mentorship tax credit".
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0023|               B.  A taxpayer may claim the credit provided in this
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0024|     section for each taxable year in which the taxpayer employs one
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0025|     or more qualified students who are participants in a certified
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0001|     school-to-work program.  The maximum aggregate credit allowable
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0002|     shall not exceed fifty percent of the gross wages paid to not
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0003|     more than ten qualified students employed by the taxpayer for
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0004|     up to three hundred twenty hours of employment of each
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0005|     qualified student in each taxable year for a maximum of three
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0006|     taxable years for each qualified student.
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0007|               C.  The number of qualified students whose
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0008|     employment qualifies for a job mentorship tax credit shall be
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0009|     limited to a pilot program of one thousand qualified students. 
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0010|     To claim the credit under this section, the taxpayer must
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0011|     submit with his claim evidence satisfactory to the secretary
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0012|     that the superintendent of public instruction has certified
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0013|     that the employees are qualified students who are participants
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0014|     in the pilot program and that the students were employed by the
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0015|     taxpayer during the taxable year for which the credit is
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0016|     claimed.
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0017|               D.  The credit provided under this section may only
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0018|     be deducted from the taxpayer's corporate income tax liability
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0019|     for the taxable year.  Any portion of the maximum tax credit
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0020|     provided by this section that remains unused at the end of the
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0021|     taxpayer's taxable year may be carried forward for three
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0022|     consecutive taxable years; provided, the total tax credits
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0023|     claimed under this section shall not exceed the maximum
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0024|     allowable under Subsection B of this section.
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0025|               E.  As used in this section:
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0001|                    (1)  "certified school-to-work program" means a
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0002|     summer employment program certified by the state department of
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0003|     public education as a school-to-work program designed for
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0004|     secondary school students to create academic and career goals
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0005|     and objectives and find employment in a job meeting those goals
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0006|     and objectives;
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0007|                    (2)  "New Mexico business" means a corporation,
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0008|     partnership, limited partnership or limited liability company
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0009|     that carries on a trade or business in New Mexico and that
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0010|     employs in New Mexico less than three hundred full-time
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0011|     employees during the taxable year; and            
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0012|                    (3)  "qualified student" means an individual
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0013|     who is at least fourteen years of age but not more than twenty-
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0014|     one years of age who is attending full time an accredited New
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0015|     Mexico secondary school and who is a participant in a certified
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0016|     school-to-work program."
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0017|          Section 3.  APPLICABILITY.--The provisions of this act
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0018|     apply to taxable years beginning on or after January 1, 1997.
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0019|                            - 6 -                              
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0020|                     State of New Mexico
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0021|                   House of Representatives
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0022|                               
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0023|                   FORTY-THIRD LEGISLATURE
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0024|                     FIRST SESSION, 1997
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0025|                               
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0001|                               
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0002|                      February 28, 1997
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0003|                               
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0004|                               
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0005|                         Mr. Speaker:
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0006|                               
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0007|     Your EDUCATION COMMITTEE, to whom has been referred
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0008|                               
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0009|                        HOUSE BILL 264
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0010|                               
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0011|     has had it under consideration and reports same with
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0012|     recommendation that it DO PASS, amended as follows:
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0013|                               
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0014|  1.  On page 1, line 21, after "is" insert "the owner of".
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0015|                               
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0016| 2.  On page 2, line 4, after "taxpayer" insert "who is the owner
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0017|                  of a New Mexico business".
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0018|                               
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0019| 3.  On page 2, line 5, strike "taxpayer" and insert in lieu
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0020|                     thereof "business".
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0021|                               
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0022| 4.  On page 2, line 14, after "credit" insert "pursuant to this
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0023|              section or Section 2 of this act".
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0024|                               
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0025| 5.  On page 2, line 17, after "claim" strike the remainder of the
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0001|  line, strike all of lines 18 through 22 and insert in lieu
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0002|                           thereof:
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0003|                               
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0004| "certification from the superintendent of public instruction, in
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0005| a manner and form determined by the secretary, that the employees
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0006| for whom the credit is being claimed are qualified students who
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0007| are participants in the pilot program and information required by
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0008| the secretary with respect to the students' employment by the
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0009|   taxpayer during the taxable year for which the credit is
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0010|                         claimed.". 
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0011| 6.  On page 3, line 12, after "partnership" insert ", limited
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0012|   partnership, limited liability company, S corporation".
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0013|                               
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0014| 7.  On page 3, line 14, after "partnership" insert ", limited
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0015|   partnership, limited liability company, S corporation".
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0016|                               
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0017| 8.  On page 3, line 15, strike "partnership or association" and
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0018|              insert in lieu thereof "business".
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0019|                               
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0020| 9.  On page 4, line 1, after "company" insert "treated as a
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0021| partnership for federal income tax purposes, S corporation".
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0022|                               
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0023| 10.  On page 5, line 7, after "credit" insert "pursuant to this
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0024|              section or Section 1 of this act".
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0025|                               
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0001| 11.  On page 5, line 10, after "claim", strike the remainder of
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0002| the line, strike all of lines 11 through 15 and insert in lieu
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0003|                           thereof:
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0004|                               
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0005| "certification from the superintendent of public instruction, in
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0006| a manner and form determined by the secretary, that the employees
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0007| for whom the credit is being claimed are qualified students who
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0008| are participants in the pilot program and information required by
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0009| the secretary with respect to the students' employment by the
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0010|   taxpayer during the taxable year for which the credit is
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0011|                         claimed.". 
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0012|                               
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0013| 12.  On page 6, line 6, strike the comma and strike all of line
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0014|                              7.
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0015|                               
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0016| 13.On page 6, between lines 15 and 16, insert the following new
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0017|                           section:
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0018|                               
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0019| "Section 3.  DELAYED REPEAL.--Sections 1 and 2 of this act are
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0020|             repealed effective January 1, 1999."
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0021|                               
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0022|       14.Renumber the succeeding section accordingly.,
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0023|                               
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0024|       and thence referred to the TAXATION AND REVENUE
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0025|                          COMMITTEE.
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0001|                               
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0002|                   Respectfully submitted,
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0003|                               
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0004|                               
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0005|                               
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0006|              <u>                                 
</u>    |
<u></u>0007| <u>                 </u>Samuel F. Vigil, Chairman
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0008|                               
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0009|                               
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0010| Adopted <u>                    </u>Not Adopted <u>                     
</u>    |
<u></u>0011| <u>                             </u>
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0012|                 (Chief Clerk) (Chief Clerk)
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0013|                               
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0014|                     Date <u>            </u>
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0015|                               
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0016|        The roll call vote was<u> 12 </u> For<u> 0 </u> Against
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0017|                            Yes:12
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0018|                        Excused:Nicely
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0019|                         Absent:None
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0020|                               
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0021|                               
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0022|                          .117804.1
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0023|                  G:\BILLTEXT\BILLW_97\H0264                    State of New Mexico
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0024|                   House of Representatives
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0025|                               
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0001|                   FORTY-THIRD LEGISLATURE
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0002|                     FIRST SESSION, 1997
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0003|                               
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0004|                               
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0005|                        March 12, 1997
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0006|                               
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0007|                               
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0008|                         Mr. Speaker:
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0009|                               
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0010|    Your TAXATION AND REVENUE COMMITTEE, to whom has been
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0011|                           referred
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0012|                               
    |
0013|                  HOUSE BILL 264, as amended
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0014|                               
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0015|     has had it under consideration and reports same with
    |
0016|     recommendation that it DO PASS, amended as follows:
    |
0017|                               
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0018|      1.  Strike House Education Committee Amendment 13.
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0019|                               
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0020| 2.  On page 2, line 12, after the period insert "In no event
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0021| shall a taxpayer claim a credit in excess of twelve thousand
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0022|  dollars ($12,000) in any taxable year.  The employer shall
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0023| certify that hiring the qualified student does not displace or
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0024|                replace a current employee.".
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0025|                               
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0001| 3.  On page 2, line 15, after the period insert "The department
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0002|   shall allocate annually to the superintendent of public
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0003| instruction one thousand certificates, which shall be distributed
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0004| by the superintendent to administrators of qualifying school-to-
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0005| work programs.  The certificates when properly executed shall
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0006| serve as evidence of the taxpayer's eligibility for the job
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0007| mentorship tax credit.  The maximum number of certificates that
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0008| may be issued to a single school-to-work program administrator is
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0009| equal to the number of qualified school-to-work participants in
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0010|   that program on May 1 of the current calendar year.  The
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0011| certificates shall be issued in the order in which they are
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0012|                         requested.".
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0013|                               
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0014| 4.  On page 5, line 5, after the period insert "In no event shall
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0015| a taxpayer claim a credit in excess of twelve thousand dollars
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0016| ($12,000) in any taxable year.  The employer shall certify that 
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0017| hiring the qualified student does not displace or replace a
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0018|                     current employee.".
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0019|                               
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0020| 5.  On page 5, line 8, after the period insert "The department
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0021|   shall allocate annually to the superintendent of public
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0022| instruction one thousand certificates, which shall be distributed
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0023| by the superintendent to administrators of qualifying school-to-
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0024| work programs.  The certificates when properly executed shall
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0025| serve as evidence of the taxpayer's eligibility for the job
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0001| mentorship tax credit.  The maximum number of certificates that
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0002| may be issued to a single school-to-work program administrator is
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0003| equal to the number of qualified school-to-work participants in
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0004|   that program on May 1 of the current calendar year.  The
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0005| certificates shall be issued in the order in which they are
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0006|                         requested.".
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0007|                               
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0008| 6.  On page 6, between lines 15 and 16, insert the following
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0009|                          sections:
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0010|                               
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0011| "Section 3.  TEMPORARY PROVISION--EXHAUSTION OF CREDIT.--If an
    |
0012| income tax or corporate income tax taxpayer has been allowed a
    |
0013| credit pursuant to Section 1 or 2 of this act and any portion of
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0014|  the credit allowed is unused on the date the sections are
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0015| repealed, the unused amount may be carried forward regardless of
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0016| the repeal to any taxable year within the three consecutive
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0017| taxable years following the first taxable year for which the
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0018|                      claim was allowed.
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0019|                               
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0020| Section 4.  DELAYED REPEAL.--Sections 1 and 2 of this act are
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0021|            repealed effective January 1, 1999.".
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0022|                               
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0023|      7.  Renumber the succeeding section accordingly.,
    |
0024|                               
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0025|    and thence referred to the APPROPRIATIONS AND FINANCE 
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0001|                          COMMITTEE.
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0002|                               
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0003|                   Respectfully submitted,
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0004|                               
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0005|                               
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0006|                               
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0007|              <u>                                 
</u>    |
<u></u>0008| <u>                 </u>Jerry W. Sandel, Chairman
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0009|                               
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0010|                               
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0011| Adopted <u>                    </u>Not Adopted <u>                     
</u>    |
<u></u>0012| <u>                             </u>
    |
0013|                 (Chief Clerk) (Chief Clerk)
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0014|                               
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0015|                     Date <u>            </u>
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0016|                               
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0017|        The roll call vote was<u> 10 </u> For<u> 0 </u> Against
    |
0018|                            Yes:10
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0019|              Excused:Gubbels, Lovejoy, Parsons
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0020|                         Absent:None
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0021|                               
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0022|                               
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0023|                          .118730.1
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0024|                  G:\BILLTEXT\BILLW_97\H0264                    State of New Mexico
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0025|                   House of Representatives
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0001|                               
    |
0002|                   FORTY-THIRD LEGISLATURE
    |
0003|                     FIRST SESSION, 1997
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0004|                               
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0005|                               
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0006|                        March 14, 1997
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0007|                               
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0008|                               
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0009|                         Mr. Speaker:
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0010|                               
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0011|      Your APPROPRIATIONS AND FINANCE COMMITTEE, to whom
    |
0012|                      has been referred
    |
0013|                               
    |
0014|                  HOUSE BILL 264, as amended
    |

0015|                               
    |
0016|   has had it under consideration and reports same with
    |
0017|   recommendation that it DO PASS.
    |
0018|   
    |
0019|                                 Respectfully submitted,
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0020|   
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0021|   
    |
0022|   
    |
0023|                                 <u>                                
</u>    |
<u></u>0024| <u>  
</u>    |
<u></u>0025| <u>                                </u>                             Max Coll, Chairman
    |
0001|   
    |
0002|   
    |
0003|   Adopted <u>                    </u>     Not Adopted <u>                    
</u>    |
<u></u>0004| <u>   </u>
    |
0005|             (Chief Clerk)                       (Chief Clerk)
    |
0006|   
    |
0007|                        Date <u>            </u>
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0008|   
    |
0009|   The roll call vote was<u> 13 </u> For<u> 0 </u> Against
    |
0010|   Yes:      13
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0011|             Excused:  Abeyta, Bird, Salazar, Watchman
    |
0012|             Absent:   None
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0013|   
    |
0014|   
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0015|   G:\BILLTEXT\BILLW_97\H0264  
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0016|   
    |
0017|                      FORTY-THIRD LEGISLATURE
    |
0018|                        FIRST SESSION, 1997
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0019|   
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0020|   
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0021|                                                  March 19, 1997
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0022|   
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0023|   Mr. President:
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0024|   
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0025|       Your WAYS AND MEANS COMMITTEE, to whom has been
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0001|   referred
    |
0002|   
    |
0003|                     HOUSE BILL 264, as amended
    |
0004|   
    |
0005|   has had it under consideration and reports same with
    |
0006|   recommendation that it DO PASS, and thence referred to the
    |
0007|   FINANCE COMMITTEE.
    |
0008|   
    |
0009|                                Respectfully submitted,
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0010|   
    |
0011|   
    |
0012|   
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0013|                                
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0014|   __________________________________
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0015|                                Carlos R. Cisneros, Chairman 
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0016|   
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0017|   
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0018|   
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0019|   Adopted_______________________   Not
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0020|   Adopted_______________________
    |
0021|             (Chief Clerk)                          (Chief Clerk)
    |
0022|   
    |
0023|   
    |
0024|                     Date ________________________
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0025|   
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0001|   
    |
0002|   The roll call vote was <u> 7 </u> For <u> 0 </u> Against
    |
0003|           Yes:    7
    |
0004|           No:     0
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0005|                Excused:     Duran, McSorley
    |
0006|           Absent: None
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0007|   
    |
0008|   
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0009|   H0264WM1
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0010|   
    |
0011|     
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0012|   
    |
0013|                      FORTY-THIRD LEGISLATURE
    |
0014|                        FIRST SESSION, 1997
    |
0015|   
    |
0016|   
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0017|                                                  March 20, 1997
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0018|   
    |
0019|   Mr. President:
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0020|   
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0021|       Your FINANCE COMMITTEE, to whom has been referred
    |
0022|   
    |
0023|                     HOUSE BILL 264, as amended
    |
0024|   
    |
0025|   has had it under consideration and reports same with
    |
0001|   recommendation that it DO PASS.
    |
0002|   
    |
0003|                                Respectfully submitted,
    |
0004|   
    |
0005|   
    |
0006|   
    |
0007|                                
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0008|   __________________________________
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0009|                                Ben D. Altamirano, Chairman 
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0010|   
    |
0011|   
    |
0012|   
    |
0013|   Adopted_______________________   Not
    |
0014|   Adopted_______________________
    |
0015|             (Chief Clerk)                          (Chief Clerk)
    |
0016|   
    |
0017|   
    |
0018|   
    |
0019|                     Date ________________________
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0020|   
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0021|   
    |
0022|   The roll call vote was <u> 6 </u> For <u> 0 </u> Against
    |
0023|           Yes:    6
    |
0024|           No:     None
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0025|                Excused:     Aragon, Carraro, Eisenstadt, Ingle, McKibben
    |
0001|           Absent: None
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0002|   
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0003|   
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0004|   H0264FC1
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0005|   
    |