0001|                        SENATE BILL 395
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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|                        JANICE D. PASTER
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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|     
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0011|                             AN ACT
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0012|     RELATING TO TAXATION; ENACTING AN INCOME TAX CREDIT FOR EXPENSES
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0013|     INCURRED FOR DEPENDENT ADULT DAYCARE OR FOR PROVIDING CERTAIN
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0014|     ADULT DEPENDENT CARE.
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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|       "[<u>NEW MATERIAL</u>]  CREDIT FOR EXPENSES FOR DEPENDENT ADULT
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0020|     DAYCARE OR FOR PROVIDING CERTAIN ADULT DEPENDENT CARE.--
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0021|            A.  As used in this section:
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0022|                 (1)  "caregiver" means a corporation or an
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0023|     individual eighteen years of age or older that receives
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0024|     compensation from a resident for providing direct care and
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0025|     supervision to a qualifying dependent of the resident for less
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0001|     than twenty-four hours daily;
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0002|                 (2)  "cost of maintaining a household" means
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0003|     actual expenses incurred for the mutual benefit of the occupants
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0004|     of a dwelling by reason of the dwelling's operation as the
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0005|     principal place of abode for those occupants, including property
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0006|     taxes, mortgage interest, rent, utility charges, upkeep and
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0007|     repairs, property insurance and food consumed on the premises. 
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0008|     "Cost of maintaining a household" does not include expenses
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0009|     otherwise incurred, including the cost of clothing, education,
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0010|     medical treatment, vacations, life insurance, transportation and
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0011|     mortgages;
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0012|                 (3)  "dependent" means "dependent" as defined by
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0013|     Section 152 of the Internal Revenue Code, but also includes any
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0014|     minor child or stepchild of the resident who would be a
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0015|     dependent for federal income tax purposes if the public
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0016|     assistance contributing to the support of the child or stepchild
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0017|     was considered to have been contributed by the resident;
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0018|                 (4)  "incapable of self-care" means that a
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0019|     licensed physician has certified that an individual is
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0020|     incapable, due to physical or mental handicap, of dressing,
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0021|     cleaning or feeding himself or requires the full-time attention
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0022|     of another individual for his own safety or the safety of
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0023|     others; and
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0024|                 (5)  "qualifying dependent" means a person who
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0025|     is incapable of self-care and is either a resident's dependent
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0001|     fifteen years of age or older at the end of the taxable year or
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0002|     a resident's spouse.
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0003|            B.  A resident who files an individual New Mexico
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0004|     income tax return and who is not a dependent of another taxpayer
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0005|     may claim a credit either for dependent adult daycare expenses
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0006|     incurred and paid to a caregiver in New Mexico during the
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0007|     taxable year by the resident or for providing adult daycare to a
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0008|     qualifying dependent in the resident's home during the taxable
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0009|     year if the resident:
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0010|                 (1)  singly or together with a spouse furnishes
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0011|     over half the cost of maintaining the household for one or more
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0012|     qualifying dependents for any period in the taxable year for
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0013|     which the credit is claimed;
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0014|                 (2)  either compensates a caregiver for daycare
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0015|     for a qualifying dependent or is both not employed for all or a
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0016|     portion of the taxable year and during that period cares for a
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0017|     qualifying dependent in the resident's home; and
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0018|                 (3)  has a modified gross income of not more
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0019|     than twenty thousand dollars ($20,000) if filing as a single
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0020|     individual or head of household and not more than thirty-five
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0021|     thousand dollars ($35,000) if filing as a married individual.
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0022|            C.  The credit provided for in this section shall be:
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0023|                 (1)  six hundred dollars ($600) for each
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0024|     qualifying dependent or a total of one thousand two hundred
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0025|     dollars ($1,200) for all qualifying dependents for a taxable
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0001|     year, if the taxpayer qualifies for the credit by providing care
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0002|     for a qualifying dependent in the resident's home for one-half
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0003|     or more of the taxable year;
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0004|                 (2)  three hundred dollars ($300) for each
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0005|     qualifying dependent or a total of six hundred dollars ($600)
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0006|     for all qualifying dependents for a taxable year, if the
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0007|     taxpayer qualifies for the credit by providing care for a
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0008|     qualifying dependent in the resident's home for less than one-half of the taxable year; or
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0009|                 (3)  forty percent of the actual compensation
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0010|     paid to a caregiver by the resident for a qualifying dependent
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0011|     not to exceed six hundred dollars ($600) for each qualifying
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0012|     dependent or a total of one thousand two hundred dollars
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0013|     ($1,200) for all qualifying dependents for a taxable year.  For
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0014|     the purpose of computing the credit in this paragraph, actual
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0015|     compensation shall not exceed eight dollars ($8.00) per day for
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0016|     each qualifying dependent.
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0017|            D.  A taxpayer who is eligible for a credit pursuant
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0018|     to more than one paragraph under Subsection C of this section
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0019|     shall claim the credit only pursuant to the paragraph that
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0020|     provides the greater credit.         
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0021|            E.  The caregiver shall furnish the resident with a
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0022|     signed statement of compensation paid by the resident to the
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0023|     caregiver for daycare services.  Such statements shall specify
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0024|     the dates and the total number of days for which payment has
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0025|     been made.
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0001|            F.  If the resident taxpayer has a federal tax
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0002|     liability, the taxpayer shall claim from the state not more than
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0003|     the difference between the amount of the dependent adult daycare
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0004|     credit for which he is eligible and the federal dependent care
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0005|     credit he is able to deduct from federal tax liability for the
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0006|     same taxable year for the same qualifying dependent.
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0007|            G.  The credit provided for in this section may be
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0008|     deducted from the taxpayer's New Mexico income tax liability for
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0009|     the taxable year.  If the credit exceeds the taxpayer's income
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0010|     tax liability, the excess shall be refunded to the taxpayer.
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0011|            H.  A husband and wife maintaining a household for
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0012|     one or more qualifying dependents and filing separate returns
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0013|     for a taxable year for which they could have filed a joint
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0014|     return:
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0015|                 (1)  may each claim only one-half of the credit
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0016|     that would have been claimed on a joint return; and
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0017|                 (2)  are eligible for the credit provided in
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0018|     this section only if their joint modified gross income is not
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0019|     more than thirty-five thousand dollars ($35,000).
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0020|            I.  The taxpayer claiming the credit pursuant to this
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0021|     section shall submit with the application a copy of the written
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0022|     certification from a licensed physician that the qualifying
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0023|     dependent is in the physician's opinion incapable of self-care
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0024|     as that term is defined in this section."
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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, 1996.
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0002|                                    
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0003|   
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0004|                    FORTY-SECOND LEGISLATURE
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0005|                      SECOND SESSION, 1996
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0006|   
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0007|   
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0008|                                              JANUARY 29, 1996
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0009|   
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0010|   Mr. President:
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0011|   

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0012|     Your COMMITTEES' COMMITTEE, to whom has been referred
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0013|   
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0014|                           SENATE BILL 395
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0015|   
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0016|   has had it under consideration and finds same to be GERMANE, PURSUANT
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0017|   TO CONSTITUIONAL PROVISIONS, and thence referred to the WAYS AND
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0018|   MEANS COMMITTEE.
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0019|   
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0020|                              Respectfully submitted,
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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|                              __________________________________
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0001|                              SENATOR MANNY M. ARAGON, Chairman 
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0002|   
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0003|   
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0004|   
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0005|   Adopted_______________________ Not Adopted_______________________
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0006|             (Chief Clerk)                        (Chief Clerk)
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0007|   
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0008|   
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0009|                     Date ________________________
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0010|   
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0011|   
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0012|   
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0013|     S0395CC1
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0014|   
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0015|                      FORTY-SECOND LEGISLATURE             SB 395/a
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0016|                        SECOND SESSION, 1996
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0017|   
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0018|   
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0019|                                                   February 9, 1996
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0020|   
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0021|   Mr. President:
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0022|   
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0023|     Your WAYS AND MEANS COMMITTEE, to whom has been referred
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0024|   
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0025|                           SENATE BILL 395
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0001|   
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0002|   has had it under consideration and reports same with recommendation that
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0003|   it DO PASS, amended as follows:
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0004|   
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0005|     1.  On page 2, line 12, strike the comma and the remainder of the
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0006|   line, strike lines 13 through 16 and insert in lieu thereof a semicolon.
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0007|   
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0008|     2.  On page 2, line 22, after "others" insert ", but does not
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0009|   include such incapacity resulting from a short-term injury or illness".
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0010|   
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0011|     3.  On page 3, line 17, strike "a modified" and insert in lieu
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0012|   thereof "an adjusted".
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0013|   
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0014|     4.  On page 3, strike likes 22 through 25 and on page 4, strike
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0015|   lines 1 through 8 and insert in lieu thereof:
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0016|   
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0017|         "(1)  if the taxpayer qualifies for the credit by
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0018|   providing care for a qualifying dependent in the taxpayer's home for
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0019|   one-half or more of the taxable year, an amount equal to eight dollars
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0020|   ($8.00) for each day of care provided, not to exceed six hundred dollars
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0021|   ($600) for each qualifying dependent or a total of one thousand two
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0022|   hundred dollars ($1,200) for all qualifying dependents for the taxable
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0023|   year;
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0024|   
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0025|         (2)  if the taxpayer qualifies for the credit by providing
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0001|   care for a qualifying dependent in the taxpayer's home for less than
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0002|   one-half of the taxable year, an amount equal to eight dollars ($8.00)
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0003|   for each day of care provided, not to exceed three hundred dollars
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0004|   ($300) for each qualifying dependent or a total of six hundred dollars
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0005|     ($600) for all qualifying dependents for the taxable year; or".    5.  Renumber succeeding paragraphs accordingly.
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0006|   
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0007|     6.  On page 5, line 18, strike "modified" and insert in lieu
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0008|   thereof "adjusted".,   
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0009|   
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0010|   and thence referred to the FINANCE COMMITTEE. 
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0011|         
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0012|                  Respectfully submitted,
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0013|   
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0014|   
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0015|   
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0016|                  __________________________________
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0017|                  TITO D. CHAVEZ, Chairman 
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0018|   
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0019|   
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0020|   
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0021|   Adopted_______________________ Not Adopted_______________________
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0022|             (Chief Clerk)                          (Chief Clerk)
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0023|   
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0024|   
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0025|                     Date ________________________
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0001|   
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0002|   
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0003|   The roll call vote was <u> 3 </u> For <u> 2 </u> Against
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0004|   Yes:  3
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0005|   No:     Chavez, Weiner
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0006|   Excused:   Rawson, Riley, Rhodes
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0007|   Absent: None
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0008|   
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0009|   
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0010|   
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0011|   
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0012|   
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0013|   S0395WM1                                             .111764.1/a
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