Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us). Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

F I S C A L I M P A C T R E P O R T

SPONSOR	Carraro		DATE TYPED	1/26/04		HB
SHORT TITLE		Income Tax Credits for Donations to NM Military Institute				SB	102
					ANALYST		Neel

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY04	FY05	FY04	FY05
	63.0			Recurring	New Mexico Inst. Scholarship

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY04	FY05
	(63.0)	(250.0)	Recurring	General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From:

Taxation and Revenue Department

SUMMARY

Synopsis of Bill

Senate Bill 102 amends statute to enact the “New Mexico Military Institute Scholarship Donation Credit”. The credit is capped at $250 thousand and maybe claimed for 50 percent of the value donated to the New Mexico Military Institute Scholarship fund. The fund is created in the state treasury and is appropriated to the board of regents at NMMI to provided scholarships to students under the age of eighteen who have a parent imprisoned in a New Mexico correctional facility. The corpus of the fund will not revert to the general fund.

SB 102 provides certification of eligibility to be provided by NMMI that includes donated amounts. Donations made under provisions of SB 102 are excluded from a taxpayers itemized deductions as defined in Section 63 of the Internal Revenue Code. A husband and wife that file separately may qualify for one-half of the NMMISDC allowed if they filed jointly.

FISCAL IMPLICATIONS

TRD’s estimate reflects payments for the first six months of tax year 2005, or 25 percent of the full year and an assumption of $500 thousand annual gifts to NMMI thereafter.

POSSIBLE QUESTIONS

Could the NMMISDC be claimed against corporate income taxes?

How is New Mexico Correctional facility defined? Would this include municipal or county facilities?

SN/yr:prr