SENATE BILL 603

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Pete Campos

AN ACT

RELATING TO TAXATION; PROVIDING FOR AN INCOME TAX DEDUCTION FOR TUITION PAYMENTS MADE TO A PRIVATE NONPROFIT ELEMENTARY OR SECONDARY SCHOOL.

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] DEDUCTION--TUITION PAYMENTS MADE TO A PRIVATE NONPROFIT ELEMENTARY OR SECONDARY SCHOOL.--

          A. A taxpayer may claim a deduction from net income in an amount not to exceed five hundred dollars ($500) for the payment of tuition for the taxpayer's dependent to attend full time a private nonprofit elementary or secondary school incurred during the taxable year for which the deduction is being claimed. 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 deduction provided for in this section that would have been allowed on the joint return. Taxpayers having income both within and without this state shall apportion this deduction in accordance with rules of the secretary.

          B. For the purposes of this section:

                (1) "dependent" means a qualifying child as defined in Section 152 of the Internal Revenue Code of 1986 who is at least five years of age prior to 12:01 a.m. on September 1 of the school year and who has not received a high school diploma or reached the age of eighteen; provided that a maximum age of twenty-one shall be used for a qualifying child who is classified as a special education student;

                (2) "private nonprofit elementary or secondary school" means an elementary or secondary school that has been granted tax-exempt status by the internal revenue service pursuant to Section 501(c)(3) or Section 170(c) of the Internal Revenue Code of 1986 and that is accredited by the public education department; and

                (3) "tuition" means the amount of money charged to students for instructional services, which may be charged per term, per course or per credit. "Tuition" does not include required general or other fees."

     Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2010.

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