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

RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT AND A CORPORATE INCOME TAX CREDIT FOR CERTAIN QUALIFIED EDUCATIONAL EXPENDITURES.

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] CREDIT--EDUCATIONAL EXPENDITURES.--

A. A taxpayer who files an individual New Mexico income tax return and who is not a dependent of another individual may claim a credit not to exceed five hundred dollars ($500) in an amount equal to qualified educational expenditures made by the taxpayer in the taxable year for which the credit is claimed. The credit may be claimed for each taxable year in which the taxpayer makes qualified educational expenditures.

B. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the credit that would have been allowed on a joint return.

C. The credit provided in this section may only be deducted from the taxpayer's income tax liability.

D. As used in this section, "qualified educational expenditures" means payments made for tuition, fees, academic tutoring or special needs services in connection with the enrollment or attendance of an elementary or secondary school student at a public, private or religious school in New Mexico or the contribution of computer equipment or software to any public, private or religious elementary or secondary school in New Mexico if the school or other person providing the services, if applicable, certifies the amount and purpose of the payments."

Section 2. A new section of the Corporate Income and Franchise Tax Act is enacted to read:

"[NEW MATERIAL] CREDIT--EDUCATIONAL EXPENDITURES.--

A. A taxpayer who files a corporate income tax return may claim a credit not to exceed five hundred dollars ($500) in an amount equal to qualified educational expenditures made by the taxpayer in the taxable year for which the credit is claimed. The credit may be claimed for each taxable year in which the taxpayer makes qualified educational expenditures.

B. The credit provided in this section may only be deducted from the taxpayer's corporate income tax liability.

C. As used in this section, "qualified educational expenditures" means payments made for tuition, fees, academic tutoring or special needs services in connection with the enrollment or attendance of an elementary or secondary school student at a public, private or religious school in New Mexico or the contribution of computer equipment or software to any public, private or religious elementary or secondary school in New Mexico if the school or other person providing the services, if applicable, certifies the amount and purpose of the payments."

Section 3. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2000.