3.4.14.9

CORPORATE-SUPPORTED DAY CARE CREDIT

1. 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.

2. B. Allowable credit; partial offset.

   1. (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. (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

      [10/16/1984, 9/16/1988, 1/7/1992, 1/15/1997; 3.4.14.9 NMAC - Rn & A, 3 NMAC 4.14.9, 12/14/2000]