New Mexico Administrative Code
Title 3 - TAXATION
Chapter 4 - CORPORATE INCOME TAXES
Part 14 - TAX CREDITS
Section 3.4.14.9 - CORPORATE-SUPPORTED DAY CARE CREDIT
Universal Citation: 3 NM Admin Code 3.4.14.9
Current through Register Vol. 35, No. 18, September 24, 2024
A. Dependent defined. Dependent for purposes of Section 7-2A-14 NMSA 1978 is a child under the age of twelve years who is a dependent as defined in Section 152 of the Internal Revenue Code, as amended or renumbered, and also includes a child of divorced or legally separated parents where the parents meet all the requirements of Section 44A(f)5 of the Internal Revenue Code, as amended or renumbered.
B. Allowable credit; partial offset.
(1) Any
receipts of a corporation from an employee for the use of the child care
facility shall be considered as a reduction of the allowable expenses for
computing the child care credit.
(2) Example: The Spruce corporation receives
from employees a nominal fee for use of the child care facility provided by the
corporation. The total expenses incurred by the corporation in this taxable
year were $12,000. The receipts from the employees amount to $600. Therefore,
the allowable tax credit to the corporation is $3,420 computed as follows:
|
Total expenses incurred |
$ 12,000 |
|
Less: Receipts from employees |
- 600 |
|
Net expenses paid |
$ 11,400 |
|
At 30%, Allowable credit |
$ 3,420 |
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