SENATE BILL 33

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Joseph J. Carraro

AN ACT

RELATING TO TAXATION; CREATING AN INCOME TAX CREDIT FOR DONATIONS TO THE NEW MEXICO MILITARY INSTITUTE SCHOLARSHIP FUND; CREATING THE NEW MEXICO MILITARY INSTITUTE SCHOLARSHIP FUND; 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] NEW MEXICO MILITARY INSTITUTE SCHOLARSHIP DONATION CREDIT.--

          A. A taxpayer who files a New Mexico income tax return, who is not a dependent of another taxpayer and who makes a donation to the New Mexico military institute scholarship fund may claim a credit in an amount not to exceed one-half of the donation made during the taxable year for which the return is filed. The tax credit shall be known as the "New Mexico military institute scholarship donation credit". The total value of New Mexico military institute scholarship donation credits permitted by the department shall not exceed two hundred fifty thousand dollars ($250,000) for a taxable year.

          B. To claim the New Mexico military institute scholarship donation credit, a taxpayer shall submit to the department the certificate of eligibility issued by the New Mexico military institute pursuant to Subsection C of this section and any other information the department may require to determine the amount of the tax credit due the taxpayer.

          C. A taxpayer may request a certificate of eligibility for the New Mexico military institute scholarship donation credit from the New Mexico military institute in an amount not to exceed one-half of a donation made by the taxpayer to the New Mexico military institute scholarship fund during the taxable year. The taxpayer shall submit with the request proof satisfactory to the institute of the donation. If the sum of the taxpayer's claim and the total value of certificates of eligibility issued by the New Mexico military institute for the taxable year does not exceed two hundred fifty thousand dollars ($250,000), the New Mexico military institute shall issue to the taxpayer a certificate of eligibility in an amount equal to the taxpayer's claim. If the sum of the taxpayer's claim and the total value of the certificates of eligibility issued by the New Mexico military institute for the taxable year exceeds two hundred fifty thousand dollars ($250,000), the institute shall issue to the taxpayer a certificate of eligibility equal to two hundred fifty thousand dollars ($250,000) minus the total value of the certificates of eligibility issued by the institute for the taxable year. Requests for certificates of eligibility shall be considered in the order received.

          D. The New Mexico military institute scholarship donation credit shall not be allowed for a contribution that is included in the taxpayer's itemized deductions, as defined in Section 63 of the Internal Revenue Code, for the taxable year.

          E. 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 New Mexico military institute scholarship donation credit that would have been allowed on a joint return.

          F. The New Mexico military institute scholarship donation credit provided in this section may only be deducted from the taxpayer's New Mexico income tax liability for the taxable year in which the contribution is made."

     Section 2. [NEW MATERIAL] NEW MEXICO MILITARY INSTITUTE SCHOLARSHIP FUND.--The "New Mexico military institute scholarship fund" is created in the state treasury. The fund shall consist of appropriations, gifts, grants, donations and bequests. Money in the fund is appropriated to the board of regents of the New Mexico military institute to provide scholarships to students under the age of eighteen with preference given to students who have a parent or legal guardian imprisoned in a New Mexico correctional facility. Money in the fund shall not revert to the general fund at the end of a fiscal year.

     Section 3. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2005.

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