HOUSE EDUCATION COMMITTEE SUBSTITUTE FOR

HOUSE BILL 117

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

AN ACT

RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT FOR CERTAIN PUBLIC AND PRIVATE SCHOOL TEACHERS FOR EXPENDITURES FOR APPROPRIATE EDUCATION CLASSROOM SUPPLIES.

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--CERTAIN PUBLIC AND PRIVATE SCHOOL TEACHERS--EXPENSES FOR CLASSROOM SUPPLIES.--

          A. A taxpayer who files an individual or joint New Mexico income tax return who has obtained a valid teaching license from the public education department and who is employed at a public or accredited private school in New Mexico that provides instruction for grades kindergarten through twelve may claim a credit for expenditures for appropriate education classroom supplies that are directly related to student learning in the classroom not to exceed:

                (1) two hundred fifty dollars ($250) if the modified gross income for the taxable year reported on the return does not exceed seventy-one thousand dollars ($71,000);

                (2) two hundred dollars ($200) if the modified gross income for the taxable year reported on the return is more than seventy-one thousand dollars ($71,000) but does not exceed seventy-two thousand dollars ($72,000);

                (3) one hundred fifty dollars ($150) if the modified gross income for the taxable year reported on the return is more than seventy-two thousand dollars ($72,000) but does not exceed seventy-three thousand dollars ($73,000);

                (4) one hundred dollars ($100) if the modified gross income for the taxable year reported on the return is more than seventy-three thousand dollars ($73,000) but does not exceed seventy-four thousand dollars ($74,000); and

                (5) fifty dollars ($50.00) if the modified gross income for the taxable year reported on the return is more than seventy-four thousand dollars ($74,000) but does not exceed seventy-five thousand dollars ($75,000).

          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. Any portion of the tax credit provided by this section that remains unused at the end of the taxpayer's taxable year may be carried forward for four consecutive taxable years."

     Section 2. DELAYED REPEAL.--The provisions of this act are repealed effective January 1, 2012.

     Section 3. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2007.

- 3 -