Bill > SB107

This bill establishes a new "community home donation tax credit" for individuals filing New Mexico income tax returns who are not dependents, allowing them to claim a credit for cash donations made to entities operating licensed community homes, which are facilities licensed by the Children, Youth and Families Department (CYFD). The credit is limited to fifty percent of the total cash donations or $2,500, whichever is less, and can be claimed in the year the donation is made, with claims processed in the order received. To qualify, taxpayers must provide satisfactory evidence of the donation, proof that the recipient entity held a valid community home license from the CYFD at the time of donation, and any other required information. However, the total credit allowed for donations to a specific entity in a calendar year is capped based on the number of "residential care days" provided by that entity, where a residential care day is a 24-hour period of care for a child, or multiple days if more than one child receives care during that period. Any excess credit beyond the taxpayer's income tax liability will be refunded, and married individuals filing separately can split the credit. Business entities taxed as partnerships can also allocate the credit among their owners based on ownership interest, provided the total claimed by the entity does not exceed the allowable amount. This act applies to taxable years beginning on or after January 1, 2016.