45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT FOR OPERATION OF A HOME SCHOOL.

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] HOME SCHOOL TAX CREDIT.--

A. A taxpayer who files an individual New Mexico income tax return and is not a dependent of another taxpayer may claim a credit for operation of a home school, as that term is defined in the Public School Code, if the taxpayer has registered and operated the home school during the taxable year in accordance with the requirements for operation of a home school in the Public School Code. The credit may be claimed in an amount equal to two hundred fifty dollars ($250) for each dependent of the taxpayer for each full semester the dependent attended the home school during the taxable year, not to exceed five hundred dollars ($500) per taxable year per dependent. The credit provided in this subsection shall be known as the "home school tax credit".

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 home school tax credit that would have been allowed on a joint return.

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

D. Receipt of a tax credit pursuant to this section for operation of a home school does not authorize state involvement or entanglement with religious instruction or other operations of the home school."

Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2002.