0001| SENATE BILL 86
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| ELIZABETH T. STEFANICS
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0007|
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0008|
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0009|
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0010|
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0011| AN ACT
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0012| RELATING TO TAXATION; PROVIDING A TAX CREDIT FOR SMALL
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0013| BUSINESSES THAT PAY SEVENTY-FIVE PERCENT OF EMPLOYEE HEALTH
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0014| INSURANCE PREMIUMS.
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0015|
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0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017| Section 1. A new section of the Income Tax Act is enacted
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0018| to read:
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0019| "[NEW MATERIAL] CREDIT--EMPLOYEE HEALTH INSURANCE
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0020| PREMIUMS PAID BY SMALL BUSINESS EMPLOYERS.--
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0021| A. Any taxpayer who files an individual New Mexico
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0022| income tax return, who is engaged in a small business and who
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0023| paid at least seventy-five percent of the health insurance
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0024| premiums for one or more employees of the taxpayer in the
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0025| taxable year for which the return is filed may claim a credit in
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0001| an amount equal to ten percent of the aggregate amount of such
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0002| premiums paid by the taxpayer in the taxable year.
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0003| B. A husband and wife who file separate returns for
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0004| a taxable year in which they could have filed a joint return may
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0005| each claim only one-half of the credit pursuant to Subsection A
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0006| of this section that would have been allowed on a joint return.
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0007| C. A taxpayer who otherwise qualifies and claims a
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0008| credit pursuant to Subsection A of this section and who is a
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0009| member of a partnership or business association that is the
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0010| employer paying the employee health insurance premiums may claim
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0011| a credit only in proportion to his interest in the partnership
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0012| or association. The total credit claimed by all members of the
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0013| partnership or association shall not exceed an amount equal to
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0014| ten percent of the aggregate amount of qualifying employee
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0015| health insurance premiums paid by the partnership or association
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0016| in the taxable year.
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0017| D. The credit provided in this section may only be
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0018| deducted from the taxpayer's income tax liability for the
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0019| taxable year for which the credit is claimed.
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0020| E. As used in this section:
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0021| (1) "health insurance premium" means "health
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0022| insurance" and "premium" as those terms are defined in the New
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0023| Mexico Insurance Code; and
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0024| (2) "small business" means any individual or
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0025| legal entity employing twenty-five or fewer employees in New
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0001| Mexico who files an income tax return under the Income Tax Act."
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0002| Section 2. A new section of the Corporate Income and
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0003| Franchise Tax Act is enacted to read:
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0004| "[NEW MATERIAL] CREDIT--EMPLOYEE HEALTH INSURANCE
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0005| PREMIUMS PAID BY SMALL BUSINESS EMPLOYER.--
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0006| A. Any taxpayer who files a corporate income tax
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0007| return and who is engaged in a small business and paid at least
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0008| seventy-five percent of the health insurance premiums for one or
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0009| more employees of the taxpayer in the taxable year for which the
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0010| return is filed may claim a credit in an amount equal to ten
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0011| percent of the aggregate amount of such premiums paid by the
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0012| taxpayer in the taxable year.
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0013| B. The credit provided in this section may only be
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0014| deducted from the taxpayer's corporate income tax liability for
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0015| the taxable year for which the credit is claimed.
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0016| C. As used in this section:
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0017| (1) "health insurance premium" means "health
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0018| insurance" and "premium" as those terms are defined in the New
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0019| Mexico Insurance Code; and
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0020| (2) "small business" means any corporation
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0021| employing twenty-five or fewer employees in New Mexico that
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0022| files an income tax return under the Corporate Income and
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0023| Franchise Tax Act."
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0024| Section 3. APPLICABILITY.--The provisions of this act
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0025| apply to taxable years beginning on or after January 1, 1997.
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0001|
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0002|
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0003| FORTY-SECOND LEGISLATURE
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0004| SECOND SESSION, 1996
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0005|
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0006|
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0007| JANUARY 23, 1996
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0008|
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0009| Mr. President:
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0010|
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0011| Your COMMITTEES' COMMITTEE, to whom has been referred
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0012|
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0013| SENATE BILL 86
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0014|
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0015| has had it under consideration and finds same to be GERMANE, PURSUANT
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0016| TO CONSTITUTIONAL PROVISIONS, and thence referred to the WAYS AND
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0017| MEANS COMMITTEE.
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0018|
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0019| Respectfully submitted,
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0020|
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0021|
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0022|
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0023|
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0024| __________________________________
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0025| SENATOR MANNY M. ARAGON, Chairman
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0001|
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0002|
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0003|
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0004| Adopted_______________________ Not Adopted_______________________
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0005| (Chief Clerk) (Chief Clerk)
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0006|
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0007|
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0008| Date ________________________
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0009|
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0010|
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0011|
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0012| S0086CC1
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