44th legislature - STATE OF NEW MEXICO - second session, 2000

RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT TO ASSIST FAMILIES IN MEETING THE COSTS OF EDUCATING THEIR CHILDREN.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the Income Tax Act is enacted to read:

"[NEW MATERIAL] EDUCATION TAX CREDIT.--

A. To help defray the costs incurred by families in educating their children, a resident who files an individual New Mexico income tax return, is not a dependent of another taxpayer and has an adjusted gross income for the taxable year of less than thirty thousand dollars ($30,000) may claim a credit in the amount of fifty dollars ($50.00) for each child who is a dependent of the resident and who is:

(1) claimed as a dependent on the resident's federal income tax return or would have been entitled to be claimed as a dependent on the resident's federal return, if the resident did not file a federal return; and

(2) a school-age person who was enrolled in a public school or private school or attended a home school, as those terms are defined in the Public School Code, for any part of the taxable year.

B. The credit provided in this section may be deducted from the taxpayer's New Mexico income tax liability for the taxable year. If the credit exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.

C. As used in this section, "dependent" means "dependent" as defined in Section 152 of the Internal Revenue Code, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident."

Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2000.