SENATE BILL 927

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Cynthia Nava

AN ACT

RELATING TO TAXATION; AMENDING THE INCOME TAX ACT TO PROVIDE A HIGH-NEEDS SCHOOLS TEACHER TAX CREDIT; MAKING AN APPROPRIATION.

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] HIGH-NEEDS SCHOOLS TEACHER TAX CREDIT--QUALIFYING--AMOUNT.--

          A. A taxpayer who files an individual New Mexico income tax return, who is not a dependent of another individual, who is a qualifying level 2 or 3-A licensed teacher and who teaches in a high-needs school identified annually by the public education department, may claim a credit against the tax liability imposed by the Income Tax Act. The credit provided in this section may be referred to as the "high-needs schools teacher tax credit".

          B. A taxpayer may claim and the department may allow a high-needs schools teacher tax credit in an amount that shall not exceed:

                (1) one thousand five hundred dollars ($1,500) for a qualifying level 2 licensed teacher who has held a level 2 license for at least one-half of the taxable year; or

                (2) two thousand dollars ($2,000) for a qualifying level 3-A licensed teacher who has held a level 3-A license for at least one-half of the taxable year. 

          C. A teacher who teaches in a high-needs school for less than one-half of the full school year shall not be allowed to claim a high-needs schools teacher tax credit. To qualify for:

                (1) the maximum high-needs schools teacher tax credit, a qualifying teacher shall have taught in a high-needs school for the entire school year; or

                (2) one-half of the high-needs schools teacher tax credit, a qualifying teacher shall have taught at a high-needs school for at least one-half of the full school year, but not the full school year as determined or approved by the public education department.

          D. A teacher who qualifies for the high-needs schools teacher tax credit may apply all or a portion of the high-needs schools teacher tax credit against the teacher's personal income liability for the taxable year in which the credit is being claimed, the excess may be carried forward for up to three consecutive tax years.

          E. Each year, the public education department shall determine the criteria on which to base classification of a school as a high-needs school for that taxable year for purposes of this section. The criteria shall include consideration of academic proficiency, the percent of poverty in the school population and other factors to be identified by the public education department. For each taxable year, no more than a combined total of four thousand three hundred level 2 or level 3-A teachers shall be eligible for the high-needs schools teacher tax credit.

          F. The public education department shall furnish annually to the taxation and revenue department a list of level 2 and level 3-A licensed teachers, by name and social security number, who qualify for the high-needs schools teacher tax credit.

          G. As used in this section:

                (1) "high-needs school" means a public primary or secondary school, including charter schools, or a tribal, bureau of Indian affairs or bureau of Indian affairs contract school, identified by the public education department pursuant to this section;

                (2) "level 2 licensed teacher" means a teacher who has a valid level 2 teaching license issued by the public education department; and

                (3) "level 3-A licensed teacher" means a teacher who has a valid level 3-A teaching license issued by the public education department."

     Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2007.

     Section 3. APPROPRIATION.--One hundred thousand dollars ($100,000) is appropriated from the general fund to the public education department for expenditure in fiscal year 2008 to implement the public education department functions associated with implementation of the high-needs schools teacher tax credit. Any unexpended or unencumbered balance remaining at the end fiscal year 2008 shall revert to the general fund.

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