N.M. Admin. Code § 3.4.14.9

Current through Register Vol. 35, No. 20, October 22, 2024

Section 3.4.14.9 - CORPORATE-SUPPORTED DAY CARE CREDIT

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

N.M. Admin. Code § 3.4.14.9

10/16/84, 9/16/88, 1/7/92, 1/15/97; 3.4.14.9 NMAC - Rn & A, 3 NMAC 4.14.9, 12/14/00