SENATE BILL 312

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Phil A. Griego

AN ACT

RELATING TO TAXATION; PROVIDING FOR INCOME TAX AND CORPORATE INCOME TAX CREDITS FOR BUSINESSES ADVERSELY AFFECTED BY ROAD CONSTRUCTION PROJECTS.

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] INCOME TAX--CREDIT FOR REDUCTION IN TAXABLE INCOME DUE TO HIGHWAY CONSTRUCTION.--

          A. A taxpayer who files an individual New Mexico income tax return, who is not a dependent of another individual and who is an owner of a New Mexico business may claim, and the department may allow, a tax credit in an amount equal to a reduction in taxable income of the taxpayer from the previous taxable year that occurs as the result of highway construction by the department of transportation within one mile of the taxpayer's business during that taxable year.

          B. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the credit that would have been allowed on a joint return.

          C. A credit provided in this section may only be deducted from the taxpayer's income tax liability for the taxable year."

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

     "[NEW MATERIAL] CORPORATE INCOME TAX--CREDIT FOR REDUCTION IN TAXABLE INCOME DUE TO HIGHWAY CONSTRUCTION.--

          A. A taxpayer that files a corporate income tax return and that is a New Mexico business may claim, and the department may allow, a tax credit in an amount equal to a reduction in taxable income of the taxpayer from the previous taxable year that occurs as the result of highway construction by the department of transportation within one mile of the taxpayer's business during that taxable year.

          B. The credit provided by this section may only be deducted from the taxpayer's corporate income tax liability for the taxable year."

     Section 3. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2005.