HOUSE BILL 504

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

INTRODUCED BY

Al Park

AN ACT

RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT FOR HIGHER EDUCATION EXPENSES.

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] HIGHER EDUCATION CREDIT.--

          A. A resident who files an individual New Mexico tax return, who is not a dependent of another individual and who paid tuition or fees to a public post-secondary educational institution in New Mexico or a private accredited college in New Mexico on behalf of the resident or a dependent may claim a credit in the amount of five hundred dollars ($500).

          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 credit that would have been allowed on a joint return.

          C. The credit provided in this section may only be deducted from the taxpayer's income tax liability for the taxable year."

     Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2007.

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