46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT FOR CERTAIN TEACHERS.

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] TAX CREDIT--TEACHERS.--

A. A New Mexico public school teacher who files a New Mexico income tax return and who is not a dependent of another may claim a credit of one thousand dollars ($1,000) if the teacher:

(1) has earned a master's degree; and

(2) teaches, resides and owns a home in a high school cluster area in which at least ninety percent of the students attending a school in the cluster area receive a free or reduced-fee lunch.

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

C. For the purposes of this section, "high school cluster area" means an area of a school district that includes a high school and the middle and junior high schools that contain student populations that will primarily be transferred to that high school."

Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2003.