HOUSE BILL 888
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
Thomas A. Garcia
AN ACT
RELATING TO TAXATION; AMENDING THE INCOME TAX ACT; AMENDING THE CORPORATE INCOME AND FRANCHISE TAX ACT; CREATING THE VETERANS EMPLOYMENT TAX CREDIT.
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] MILITARY VETERANS EMPLOYMENT TAX CREDIT.--
A. To encourage New Mexico businesses to hire military veterans, a taxpayer who files an individual New Mexico income tax return, who is not a dependent of another individual and who is the owner of a New Mexico business may claim a credit in an amount equal to three hundred dollars ($300) of the gross wages paid to each qualified military veteran who is employed in New Mexico by the taxpayer during the taxable year for which the return is filed. The tax credit provided by this section may be referred to as the "veterans employment tax credit".
B. A taxpayer who is the owner of a New Mexico business may claim the veterans employment tax credit provided in this section for each taxable year in which the taxpayer employs one or more qualified military veterans, provided that the taxpayer may not claim the veterans employment tax credit for any individual qualified military veteran for more than two calendar years from the date of hire.
C. To claim the veterans employment tax credit, the taxpayer shall submit with respect to each employee for whom the credit is claimed:
(1) information required by the secretary with respect to the employee's employment by the taxpayer during the taxable year for which the credit is claimed; and
(2) information required by the secretary establishing that the employee is a qualified military veteran and was not also employed in the same taxable year by another New Mexico business qualifying for and claiming a veterans employment tax credit for that employee pursuant to this section or the Corporate Income and Franchise Tax Act.
D. The veterans employment tax credit may only be deducted from the taxpayer's corporate income tax liability for the taxable year, except that any portion of the maximum credit provided by this section that remains unused at the end of the taxpayer's taxable year may be carried forward for three consecutive taxable years.
E. As used in this section:
(1) "New Mexico business" means a business that carries on a trade or business in New Mexico; and
(2) "qualified military veteran" means an individual who is hired within one year of receipt of an honorable discharge from a branch of the United States military."
Section 2. A new section of the Corporate Income and Franchise Tax Act is enacted to read:
"[NEW MATERIAL] MILITARY VETERANS EMPLOYMENT TAX CREDIT.--
A. To encourage New Mexico businesses to hire military veterans, a taxpayer that is a New Mexico business and that files a corporate income tax return may claim a credit in an amount equal to three hundred dollars ($300) of the gross wages paid to each qualified military veteran who is employed in New Mexico by the taxpayer during the taxable year for which the return is filed. The tax credit provided by this section may be referred to as the "veterans employment tax credit".
B. A taxpayer may claim the veterans employment tax credit provided in this section for each taxable year in which the taxpayer employs one or more qualified military veterans, provided that the taxpayer may not claim the veterans employment tax credit for any individual qualified military veteran for more than two calendar years from the date of hire.
C. To claim the veterans employment tax credit, the taxpayer shall submit with respect to each employee for whom the credit is claimed:
(1) information required by the secretary with respect to the employee's employment by the taxpayer during the taxable year for which the credit is claimed; and
(2) information required by the secretary establishing that the employee is a qualified military veteran and was not also employed in the same taxable year by another New Mexico business qualifying for and claiming a veterans employment tax credit for that employee pursuant to this section or the Income Tax Act.
D. The veterans employment tax credit may only be deducted from the taxpayer's corporate income tax liability for the taxable year, except that any portion of the maximum credit provided by this section that remains unused at the end of the taxpayer's taxable year may be carried forward for three consecutive taxable years.
E. As used in this section:
(1) "New Mexico business" means a corporation that carries on a trade or business in New Mexico; and
(2) "qualified military veteran" means an individual who is hired within one year of receipt of an honorable discharge from a branch of the United States military."
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