Child Care Corporate Income Tax Credit
New Mexico provides for a corporate income tax credit of up to 30% of the net cost for paying for or directly providing licensed child care for employee children under the age of twelve:
- For a taxpayer that pays a third party for child care during the hours of employment, the credit is 30% of the amount paid net of reimbursements from employees or other sources.
- For a taxpayer that operates a nonprofit licensed child care facility primarily for employee children, the credit is 30% of the cost of operating the facility, net of reimbursements received from employees, federal tax credits or other sources.
Limitations - The credit may only be claimed for the taxable year in which the expenses are incurred, but if not exhausted the excess can carry over for up to three years.
- The credit may not exceed $30,000 in any taxable year
For more information or an analysis of tax incentives for your company, call 800-226-2935 or email us .
Back to top
