Bill > HB12

This bill proposes to amend existing New Mexico law regarding deductions for net capital gain income. Specifically, it removes the current provision that allows taxpayers to deduct the greater of their net capital gain income up to $1,000 or a progressively increasing percentage of their net capital gain income, which was set to reach fifty percent for taxable years beginning on or after January 1, 2007. Instead, the bill will allow married individuals filing separate returns to each claim half of the deduction that would have been allowed on a joint return, and it clarifies that a taxpayer cannot claim this deduction if they have already claimed a specific credit provided in another section of law. The term "net capital gain" is defined as it is in the Internal Revenue Code. These changes are set to apply to taxable years beginning on or after January 1, 2016.