0001| HOUSE BILL 264 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| TED HOBBS | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO TAXATION; PROVIDING INCOME TAX CREDITS FOR | 0012| EMPLOYMENT OF YOUTH PARTICIPATING IN CERTIFIED SCHOOL-TO-WORK | 0013| PROGRAMS. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. A new section of the Income Tax Act is enacted | 0017| to read: | 0018| "[NEW MATERIAL] JOB MENTORSHIP TAX CREDIT.-- | 0019| A. To encourage New Mexico businesses to hire youth | 0020| participating in certified school-to-work programs, any | 0021| taxpayer who is a New Mexico business, who files an individual | 0022| New Mexico income tax return and who is not a dependent of | 0023| another individual may claim a credit in an amount equal to | 0024| fifty percent of gross wages paid to qualified students who are | 0025| participants in a certified school-to-work program and who are | 0001| employed by the taxpayer during the taxable year for which the | 0002| return is filed. The tax credit may be known as the "job | 0003| mentorship tax credit". | 0004| B. A taxpayer may claim the credit provided in this | 0005| section for each taxable year in which the taxpayer employs one | 0006| or more qualified students who are participants in a certified | 0007| school-to-work program. The maximum aggregate credit allowable | 0008| shall not exceed fifty percent of the gross wages paid to not | 0009| more than ten qualified students employed by the taxpayer for | 0010| up to three hundred twenty hours of employment of each | 0011| qualified student in each taxable year for a maximum of three | 0012| taxable years for each qualified student. | 0013| C. The number of qualified students whose | 0014| employment qualifies for a job mentorship tax credit shall be | 0015| limited to a pilot program of one thousand qualified students. | 0016| To claim the credit under this section, the taxpayer must | 0017| submit with his claim evidence satisfactory to the secretary | 0018| that the superintendent of public instruction has certified | 0019| that the employees are qualified students who are participants | 0020| in the pilot program and that the students were employed by the | 0021| taxpayer during the taxable year for which the credit is | 0022| claimed. | 0023| D. The credit provided under this section may only | 0024| be deducted from the taxpayer's New Mexico income tax liability | 0025| for the taxable year. Any portion of the maximum tax credit | 0001| provided by this section that remains unused at the end of the | 0002| taxpayer's taxable year may be carried forward for three | 0003| consecutive taxable years; provided, the total tax credits | 0004| claimed under this section shall not exceed the maximum | 0005| allowable under Subsection B of this section. | 0006| E. A husband and wife who file separate returns for | 0007| a taxable year in which they could have filed a joint return | 0008| may each claim only one-half of the credit that would have been | 0009| allowed on a joint return. | 0010| F. A taxpayer who otherwise qualifies and claims a | 0011| job mentorship tax credit for employment of qualified students | 0012| by a partnership or other business association of which the | 0013| taxpayer is a member may claim a credit only in proportion to | 0014| his interest in the partnership or association. The total | 0015| credit claimed by all members of the partnership or association | 0016| shall not exceed the maximum tax credit allowable under | 0017| Subsection B of this section. | 0018| G. As used in this section: | 0019| (1) "certified school-to-work program" means a | 0020| summer employment program certified by the state department of | 0021| public education as a school-to-work program designed for | 0022| secondary school students to create academic and career goals | 0023| and objectives and find employment in a job meeting those goals | 0024| and objectives; | 0025| (2) "New Mexico business" means a partnership, | 0001| limited partnership, limited liability company or sole | 0002| proprietorship that carries on a trade or business in New | 0003| Mexico and that employs in New Mexico less than three hundred | 0004| full-time employees at any one time during the taxable year; | 0005| and | 0006| (3) "qualified student" means an individual | 0007| who is at least fourteen years of age but not more than twenty- | 0008| one years of age who is attending full time an accredited New | 0009| Mexico secondary school and who is a participant in a certified | 0010| school-to-work program." | 0011| Section 2. A new section of the Corporation Income and | 0012| Franchise Tax Act is enacted to read: | 0013| "[NEW MATERIAL] JOB MENTORSHIP TAX CREDIT.-- | 0014| A. To encourage New Mexico businesses to hire youth | 0015| participating in certified school-to-work programs, any | 0016| taxpayer who is a New Mexico business and who files a corporate | 0017| income tax return may claim a credit in an amount equal to | 0018| fifty percent of gross wages paid to qualified students who are | 0019| participants in a certified school-to-work program and who are | 0020| employed by the taxpayer during the taxable year for which the | 0021| return is filed. The tax credit may be known as the "job | 0022| mentorship tax credit". | 0023| B. A taxpayer may claim the credit provided in this | 0024| section for each taxable year in which the taxpayer employs one | 0025| or more qualified students who are participants in a certified | 0001| school-to-work program. The maximum aggregate credit allowable | 0002| shall not exceed fifty percent of the gross wages paid to not | 0003| more than ten qualified students employed by the taxpayer for | 0004| up to three hundred twenty hours of employment of each | 0005| qualified student in each taxable year for a maximum of three | 0006| taxable years for each qualified student. | 0007| C. The number of qualified students whose | 0008| employment qualifies for a job mentorship tax credit shall be | 0009| limited to a pilot program of one thousand qualified students. | 0010| To claim the credit under this section, the taxpayer must | 0011| submit with his claim evidence satisfactory to the secretary | 0012| that the superintendent of public instruction has certified | 0013| that the employees are qualified students who are participants | 0014| in the pilot program and that the students were employed by the | 0015| taxpayer during the taxable year for which the credit is | 0016| claimed. | 0017| D. The credit provided under this section may only | 0018| be deducted from the taxpayer's corporate income tax liability | 0019| for the taxable year. Any portion of the maximum tax credit | 0020| provided by this section that remains unused at the end of the | 0021| taxpayer's taxable year may be carried forward for three | 0022| consecutive taxable years; provided, the total tax credits | 0023| claimed under this section shall not exceed the maximum | 0024| allowable under Subsection B of this section. | 0025| E. As used in this section: | 0001| (1) "certified school-to-work program" means a | 0002| summer employment program certified by the state department of | 0003| public education as a school-to-work program designed for | 0004| secondary school students to create academic and career goals | 0005| and objectives and find employment in a job meeting those goals | 0006| and objectives; | 0007| (2) "New Mexico business" means a corporation, | 0008| partnership, limited partnership or limited liability company | 0009| that carries on a trade or business in New Mexico and that | 0010| employs in New Mexico less than three hundred full-time | 0011| employees during the taxable year; and | 0012| (3) "qualified student" means an individual | 0013| who is at least fourteen years of age but not more than twenty- | 0014| one years of age who is attending full time an accredited New | 0015| Mexico secondary school and who is a participant in a certified | 0016| school-to-work program." | 0017| Section 3. APPLICABILITY.--The provisions of this act | 0018| apply to taxable years beginning on or after January 1, 1997. | 0019| - 6 - | 0020| State of New Mexico | 0021| House of Representatives | 0022| | 0023| FORTY-THIRD LEGISLATURE | 0024| FIRST SESSION, 1997 | 0025| | 0001| | 0002| February 28, 1997 | 0003| | 0004| | 0005| Mr. Speaker: | 0006| | 0007| Your EDUCATION COMMITTEE, to whom has been referred | 0008| | 0009| HOUSE BILL 264 | 0010| | 0011| has had it under consideration and reports same with | 0012| recommendation that it DO PASS, amended as follows: | 0013| | 0014| 1. On page 1, line 21, after "is" insert "the owner of". | 0015| | 0016| 2. On page 2, line 4, after "taxpayer" insert "who is the owner | 0017| of a New Mexico business". | 0018| | 0019| 3. On page 2, line 5, strike "taxpayer" and insert in lieu | 0020| thereof "business". | 0021| | 0022| 4. On page 2, line 14, after "credit" insert "pursuant to this | 0023| section or Section 2 of this act". | 0024| | 0025| 5. On page 2, line 17, after "claim" strike the remainder of the | 0001| line, strike all of lines 18 through 22 and insert in lieu | 0002| thereof: | 0003| | 0004| "certification from the superintendent of public instruction, in | 0005| a manner and form determined by the secretary, that the employees | 0006| for whom the credit is being claimed are qualified students who | 0007| are participants in the pilot program and information required by | 0008| the secretary with respect to the students' employment by the | 0009| taxpayer during the taxable year for which the credit is | 0010| claimed.". | 0011| 6. On page 3, line 12, after "partnership" insert ", limited | 0012| partnership, limited liability company, S corporation". | 0013| | 0014| 7. On page 3, line 14, after "partnership" insert ", limited | 0015| partnership, limited liability company, S corporation". | 0016| | 0017| 8. On page 3, line 15, strike "partnership or association" and | 0018| insert in lieu thereof "business". | 0019| | 0020| 9. On page 4, line 1, after "company" insert "treated as a | 0021| partnership for federal income tax purposes, S corporation". | 0022| | 0023| 10. On page 5, line 7, after "credit" insert "pursuant to this | 0024| section or Section 1 of this act". | 0025| | 0001| 11. On page 5, line 10, after "claim", strike the remainder of | 0002| the line, strike all of lines 11 through 15 and insert in lieu | 0003| thereof: | 0004| | 0005| "certification from the superintendent of public instruction, in | 0006| a manner and form determined by the secretary, that the employees | 0007| for whom the credit is being claimed are qualified students who | 0008| are participants in the pilot program and information required by | 0009| the secretary with respect to the students' employment by the | 0010| taxpayer during the taxable year for which the credit is | 0011| claimed.". | 0012| | 0013| 12. On page 6, line 6, strike the comma and strike all of line | 0014| 7. | 0015| | 0016| 13.On page 6, between lines 15 and 16, insert the following new | 0017| section: | 0018| | 0019| "Section 3. DELAYED REPEAL.--Sections 1 and 2 of this act are | 0020| repealed effective January 1, 1999." | 0021| | 0022| 14.Renumber the succeeding section accordingly., | 0023| | 0024| and thence referred to the TAXATION AND REVENUE | 0025| COMMITTEE. | 0001| | 0002| Respectfully submitted, | 0003| | 0004| | 0005| | 0006| | 0007| Samuel F. Vigil, Chairman | 0008| | 0009| | 0010| Adopted Not Adopted | 0011| | 0012| (Chief Clerk) (Chief Clerk) | 0013| | 0014| Date | 0015| | 0016| The roll call vote was 12 For 0 Against | 0017| Yes:12 | 0018| Excused:Nicely | 0019| Absent:None | 0020| | 0021| | 0022| .117804.1 | 0023| G:\BILLTEXT\BILLW_97\H0264 State of New Mexico | 0024| House of Representatives | 0025| | 0001| FORTY-THIRD LEGISLATURE | 0002| FIRST SESSION, 1997 | 0003| | 0004| | 0005| March 12, 1997 | 0006| | 0007| | 0008| Mr. Speaker: | 0009| | 0010| Your TAXATION AND REVENUE COMMITTEE, to whom has been | 0011| referred | 0012| | 0013| HOUSE BILL 264, as amended | 0014| | 0015| has had it under consideration and reports same with | 0016| recommendation that it DO PASS, amended as follows: | 0017| | 0018| 1. Strike House Education Committee Amendment 13. | 0019| | 0020| 2. On page 2, line 12, after the period insert "In no event | 0021| shall a taxpayer claim a credit in excess of twelve thousand | 0022| dollars ($12,000) in any taxable year. The employer shall | 0023| certify that hiring the qualified student does not displace or | 0024| replace a current employee.". | 0025| | 0001| 3. On page 2, line 15, after the period insert "The department | 0002| shall allocate annually to the superintendent of public | 0003| instruction one thousand certificates, which shall be distributed | 0004| by the superintendent to administrators of qualifying school-to- | 0005| work programs. The certificates when properly executed shall | 0006| serve as evidence of the taxpayer's eligibility for the job | 0007| mentorship tax credit. The maximum number of certificates that | 0008| may be issued to a single school-to-work program administrator is | 0009| equal to the number of qualified school-to-work participants in | 0010| that program on May 1 of the current calendar year. The | 0011| certificates shall be issued in the order in which they are | 0012| requested.". | 0013| | 0014| 4. On page 5, line 5, after the period insert "In no event shall | 0015| a taxpayer claim a credit in excess of twelve thousand dollars | 0016| ($12,000) in any taxable year. The employer shall certify that | 0017| hiring the qualified student does not displace or replace a | 0018| current employee.". | 0019| | 0020| 5. On page 5, line 8, after the period insert "The department | 0021| shall allocate annually to the superintendent of public | 0022| instruction one thousand certificates, which shall be distributed | 0023| by the superintendent to administrators of qualifying school-to- | 0024| work programs. The certificates when properly executed shall | 0025| serve as evidence of the taxpayer's eligibility for the job | 0001| mentorship tax credit. The maximum number of certificates that | 0002| may be issued to a single school-to-work program administrator is | 0003| equal to the number of qualified school-to-work participants in | 0004| that program on May 1 of the current calendar year. The | 0005| certificates shall be issued in the order in which they are | 0006| requested.". | 0007| | 0008| 6. On page 6, between lines 15 and 16, insert the following | 0009| sections: | 0010| | 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 | 0014| the credit allowed is unused on the date the sections are | 0015| repealed, the unused amount may be carried forward regardless of | 0016| the repeal to any taxable year within the three consecutive | 0017| taxable years following the first taxable year for which the | 0018| claim was allowed. | 0019| | 0020| Section 4. DELAYED REPEAL.--Sections 1 and 2 of this act are | 0021| repealed effective January 1, 1999.". | 0022| | 0023| 7. Renumber the succeeding section accordingly., | 0024| | 0025| and thence referred to the APPROPRIATIONS AND FINANCE | 0001| COMMITTEE. | 0002| | 0003| Respectfully submitted, | 0004| | 0005| | 0006| | 0007| | 0008| Jerry W. Sandel, Chairman | 0009| | 0010| | 0011| Adopted Not Adopted | 0012| | 0013| (Chief Clerk) (Chief Clerk) | 0014| | 0015| Date | 0016| | 0017| The roll call vote was 10 For 0 Against | 0018| Yes:10 | 0019| Excused:Gubbels, Lovejoy, Parsons | 0020| Absent:None | 0021| | 0022| | 0023| .118730.1 | 0024| G:\BILLTEXT\BILLW_97\H0264 State of New Mexico | 0025| House of Representatives | 0001| | 0002| FORTY-THIRD LEGISLATURE | 0003| FIRST SESSION, 1997 | 0004| | 0005| | 0006| March 14, 1997 | 0007| | 0008| | 0009| Mr. Speaker: | 0010| | 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, | 0020| | 0021| | 0022| | 0023| | 0024| | 0025| Max Coll, Chairman | 0001| | 0002| | 0003| Adopted Not Adopted | 0004| | 0005| (Chief Clerk) (Chief Clerk) | 0006| | 0007| Date | 0008| | 0009| The roll call vote was 13 For 0 Against | 0010| Yes: 13 | 0011| Excused: Abeyta, Bird, Salazar, Watchman | 0012| Absent: None | 0013| | 0014| | 0015| G:\BILLTEXT\BILLW_97\H0264 | 0016| | 0017| FORTY-THIRD LEGISLATURE | 0018| FIRST SESSION, 1997 | 0019| | 0020| | 0021| March 19, 1997 | 0022| | 0023| Mr. President: | 0024| | 0025| Your WAYS AND MEANS COMMITTEE, to whom has been | 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, | 0010| | 0011| | 0012| | 0013| | 0014| __________________________________ | 0015| Carlos R. Cisneros, Chairman | 0016| | 0017| | 0018| | 0019| Adopted_______________________ Not | 0020| Adopted_______________________ | 0021| (Chief Clerk) (Chief Clerk) | 0022| | 0023| | 0024| Date ________________________ | 0025| | 0001| | 0002| The roll call vote was 7 For 0 Against | 0003| Yes: 7 | 0004| No: 0 | 0005| Excused: Duran, McSorley | 0006| Absent: None | 0007| | 0008| | 0009| H0264WM1 | 0010| | 0011| | 0012| | 0013| FORTY-THIRD LEGISLATURE | 0014| FIRST SESSION, 1997 | 0015| | 0016| | 0017| March 20, 1997 | 0018| | 0019| Mr. President: | 0020| | 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| | 0008| __________________________________ | 0009| Ben D. Altamirano, Chairman | 0010| | 0011| | 0012| | 0013| Adopted_______________________ Not | 0014| Adopted_______________________ | 0015| (Chief Clerk) (Chief Clerk) | 0016| | 0017| | 0018| | 0019| Date ________________________ | 0020| | 0021| | 0022| The roll call vote was 6 For 0 Against | 0023| Yes: 6 | 0024| No: None | 0025| Excused: Aragon, Carraro, Eisenstadt, Ingle, McKibben | 0001| Absent: None | 0002| | 0003| | 0004| H0264FC1 | 0005| |