0001|                            SENATE BILL 99
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                           MARK L. BOITANO
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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; ENACTING A NEW SECTION OF THE INCOME TAX
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0012|     ACT TO PROVIDE A CREDIT FOR FAMILIES CARING FOR CHILDREN AT
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0013|     HOME.
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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
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0017|     enacted to read:
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0018|          "[<u>NEW MATERIAL</u>] CREDIT FOR CHILD CARE AT HOME.--
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0019|               A.  Any resident who files an individual New Mexico
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0020|     income tax return and who is not a dependent of another
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0021|     taxpayer may claim a credit of three hundred fifty dollars
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0022|     ($350) for caring for one or more dependents at home during
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0023|     the taxable year if:
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0024|                    (1)  the resident or, if a joint return is
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0025|     filed, one spouse, is not gainfully employed for any period of
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0001|     the taxable year for which the credit is claimed; and
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0002|                    (2)  the resident or, if a joint return is
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0003|     filed, the spouse that is not gainfully employed, cares full
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0004|     time for one or more qualifying dependents in the home for all
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0005|     of the taxable year.
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0006|               B.  The credit provided in this section may only be
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0007|     deducted from the taxpayer's New Mexico income tax liability
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0008|     for the taxable year. 
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0009|               C.  A husband and wife maintaining a household for
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0010|     one or more qualifying dependents and filing separate returns
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0011|     for a taxable year for which they could have filed a joint
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0012|     return may each claim only one-half of the credit that would
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0013|     have been claimed on a joint return.
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0014|               D.  As used in this section:
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0015|                    (1)  "dependent" means "dependent" as defined
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0016|     by Section 152 of the Internal Revenue Code of 1986, as that
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0017|     section may be amended or renumbered;
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0018|                    (2)  "gainfully employed"  means working for
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0019|     remuneration for others, either full time or part time, or
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0020|     self-employment in a business, partnership or other legal
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0021|     entity; and
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0022|                    (3)  "qualifying dependent" means a dependent
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0023|     who is twelve years of age or younger at the end of the
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0024|     taxable year."
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0025|          Section 2.  APPLICABILITY.--The provisions of this act
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0001|     apply to taxable years beginning on or after January 1, 1998.
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0002|                              
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