0001| SENATE BILL 633
|
0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
|
0003| INTRODUCED BY
|
0004| PHILLIP J. MALOOF
|
0005|
|
0006|
|
0007|
|
0008|
|
0009|
|
0010| AN ACT
|
0011| RELATING TO TAXATION; AMENDING A SECTION OF THE INCOME TAX ACT
|
0012| TO EXPAND ELIGIBILITY FOR THE DEPENDENT CHILD DAYCARE CREDIT.
|
0013|
|
0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
|
0015| Section 1. Section 7-2-18.1 NMSA 1978 (being Laws 1981,
|
0016| Chapter 170, Section 1, as amended) is amended to read:
|
0017| "7-2-18.1. CREDIT FOR EXPENSES FOR DEPENDENT CHILD [DAY
|
CARE] DAYCARE NECESSARY TO ENABLE GAINFUL EMPLOYMENT TO
|
0019| PREVENT INDIGENCY.--
|
0020| A. As used in this section:
|
0021| (1) "caregiver" means a corporation or an
|
0022| individual eighteen years of age or over who receives
|
0023| compensation from the resident for providing direct care,
|
0024| supervision and guidance to a qualifying dependent of the
|
0025| resident for less than twenty-four hours daily and includes
|
0001| related individuals of the resident but does not include a
|
0002| dependent of the resident;
|
0003| (2) "cost of maintaining a household" means
|
0004| the expenses incurred for the mutual benefit of the occupants
|
0005| thereof by reason of its operation as the principal place of
|
0006| abode of such occupants, including property taxes, mortgage
|
0007| interest, rent, utility charges, upkeep and repairs, property
|
0008| insurance and food consumed on the premises. "Cost of
|
0009| maintaining a household" shall not include expenses otherwise
|
0010| incurred, including cost of clothing, education, medical
|
0011| treatment, vacations, life insurance, transportation and
|
0012| mortgages;
|
0013| (3) "dependent" means "dependent" as defined
|
0014| by Section 152 of the Internal Revenue Code, as that section
|
0015| may be amended or renumbered, but also includes any minor child
|
0016| or stepchild of the resident who would be a dependent for
|
0017| federal income tax purposes if the public assistance
|
0018| contributing to the support of the child or stepchild was
|
0019| considered to have been contributed by the resident;
|
0020| (4) "disabled person" means a person who has a
|
0021| medically determinable physical or mental impairment, as
|
0022| certified by a licensed physician, that renders such person
|
0023| unable to engage in gainful employment;
|
0024| (5) "gainfully employed" means working for
|
0025| remuneration for others, either full time or part time, or
|
0001| selfemployment in a business or partnership; and
|
0002| (6) "qualifying dependent" means a dependent
|
0003| under the age of fifteen at the end of the taxable year who
|
0004| receives the services of a caregiver.
|
0005| B. Any resident who files an individual New Mexico
|
0006| income tax return and who is not a dependent of another
|
0007| taxpayer may claim a credit for child [day care] daycare
|
0008| expenses incurred and paid to a caregiver in New Mexico during
|
0009| the taxable year by such resident if the resident:
|
0010| (1) singly or together with a spouse furnishes
|
0011| over half the cost of maintaining the household for one or more
|
0012| qualifying dependents for any period in the taxable year for
|
0013| which the credit is claimed;
|
0014| (2) is gainfully employed for any period for
|
0015| which the credit is claimed or, if a joint return is filed,
|
0016| both spouses are gainfully employed or one is disabled for any
|
0017| period for which the credit is claimed;
|
0018| (3) compensates a caregiver for child
|
0019| [day care] daycare for a qualifying dependent to enable
|
0020| such resident together with his spouse, if any and if not
|
0021| disabled, to be gainfully employed;
|
0022| (4) is not a recipient of public assistance
|
0023| under a program of aid to families with dependent children
|
0024| during any period for which the credit provided by this section
|
0025| is claimed; and
|
0001| (5) has a modified gross income, including
|
0002| child support payments, if any, of not more than the annual
|
0003| income that would be derived from earnings at [double] four
|
0004| times the federal minimum wage.
|
0005| C. The credit provided for in this section shall be
|
0006| forty percent of the actual compensation paid to a caregiver by
|
0007| the resident for a qualifying dependent not to exceed four
|
0008| hundred eighty dollars ($480) for each qualifying dependent or
|
0009| a total of one thousand two hundred dollars ($1,200) for all
|
0010| qualifying dependents for a taxable year. For the purposes of
|
0011| computing the credit, actual compensation shall not exceed
|
0012| eight dollars ($8.00) per day for each qualifying dependent.
|
0013| D. The caregiver shall furnish the resident with a
|
0014| signed statement of compensation paid by the resident to the
|
0015| caregiver for [day care] daycare services. Such statements
|
0016| shall specify the dates and the total number of days for which
|
0017| payment has been made.
|
0018| E. If the resident taxpayer has a federal tax
|
0019| liability, the taxpayer shall claim from the state not more
|
0020| than the difference between the amount of the state child care
|
0021| credit for which the taxpayer is eligible and the federal
|
0022| credit for child and dependent care expenses the taxpayer is
|
0023| able to deduct from federal tax liability for the same taxable
|
0024| year; provided, for first year residents only, the amount of
|
0025| the federal credit for child and dependent care expenses may be
|
0001| reduced to an amount equal to the amount of federal credit for
|
0002| child and dependent care expenses the resident is able to
|
0003| deduct from federal tax liability multiplied by the ratio of
|
0004| the number of days of residence in New Mexico during the
|
0005| resident's taxable year to the total number of days in the
|
0006| resident's taxable year.
|
0007| F. The credit provided for in this section may be
|
0008| deducted from the taxpayer's New Mexico income tax liability
|
0009| for the taxable year. If the credit exceeds the taxpayer's
|
0010| income tax liability, the excess shall be refunded to the
|
0011| taxpayer.
|
0012| G. A husband and wife maintaining a household for
|
0013| one or more qualifying dependents and filing separate returns
|
0014| for a taxable year for which they could have filed a joint
|
0015| return:
|
0016| (1) may each claim only one-half of the credit
|
0017| that would have been claimed on a joint return; and
|
0018| (2) are eligible for the credit provided in
|
0019| this section only if their joint modified gross income,
|
0020| including child support payments, if any, is not more than the
|
0021| annual income that would be derived from earnings at [double]
|
0022| four times the federal minimum wage."
|
0023| Section 2. APPLICABILITY.--The provisions of this act
|
0024| apply to taxable years beginning on or after January 1, 1997.
|
0025|
|