44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO TAXATION; ENACTING SECTIONS OF THE INCOME TAX ACT TO PROVIDE A TAX CREDIT FOR MARRIED TAXPAYERS AND A DEDUCTION FOR CERTAIN CAPITAL GAIN INCOME.

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] MARRIED TAXPAYERS--INCOME TAX CREDIT.--Any taxpayer who files an individual New Mexico income tax return, who is not a dependent of another individual and who is a married individual or a surviving spouse filing a joint return may claim a credit in the amount of one hundred dollars ($100). A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim a credit in the amount of fifty dollars ($50.00). The credit provided in this section may only be deducted from the taxpayer's income tax liability. Taxpayers having income both within and without this state shall apportion this credit in accordance with rules of the secretary."

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

"[NEW MATERIAL] DEDUCTION--NET CAPITAL GAIN INCOME.--A taxpayer may claim a deduction from net income in an amount equal to the taxpayer's net capital gain income for the taxable year for which the deduction is being claimed, but not to exceed one thousand five hundred dollars ($1,500). 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 deduction provided by this section that would have been allowed on the joint return."

Section 3. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 1999.