Credit for Electronic Identification Card Reader

New Mexico has a one-time income tax credit for businesses that purchase electronic identification card readers. A business may claim this credit on a New Mexico personal income tax return or corporate income and franchise tax return if:

The business is licensed to sell cigarettes, tobacco products or alcoholic beverages, and
The business has purchased and is using equipment that electronically reads identification cards to verify age.

The credit amount is $300 for each business location using electronic identification card readers. A partnership or other business association of which the taxpayer is a member may claim a credit in proportion to the taxpayers interest in the partnership or association.

The total credit claimed by all members of the partnership or association may not exceed three hundred ($300) dollars for each business location.

A husband and wife filing separate returns may each claim half the allowable credit amount.

Claim this non-refundable credit in the tax year the equipment was purchased and put into use. You cannot carry excess amounts forward or back into another tax year.

To claim the credit, complete and notarize Form RPD-41246, Income Tax Credit for Electronic Identification Card Reader, Purchase and Use Statement. Enter the amount of credit on Line 23 of Schedule PIT-ADJ. Submit the statement and the PIT-ADJ with the 2005 PIT- 1 return. When the credit ($300) is split among spouses, owners, partners, or other business associations, each claimant must show the division of the total credit ($300 per business location) on page 2 of form RPD-41246.

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