0001|                           SENATE BILL 247
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                           WILLIAM H. PAYNE
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT FOR
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0012|     CONTRIBUTIONS TO PUBLIC SCHOOLS AND PUBLIC POST-SECONDARY
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0013|     EDUCATIONAL INSTITUTIONS IN NEW MEXICO.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          Section 1.  A new section of the Income Tax Act is
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0017|     enacted to read:
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0018|          "[<u>NEW MATERIAL</u>] CREDIT--EDUCATIONAL CONTRIBUTIONS.--
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0019|               A.  To encourage support for public schools and
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0020|     public post-secondary educational institutions in New Mexico,
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0021|     any taxpayer who files an individual New Mexico income tax
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0022|     return and who is not a dependent of another individual may
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0023|     claim a credit not to exceed one hundred dollars ($100) in an
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0024|     amount equal to qualified educational expenditures made by the
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0025|     taxpayer in the taxable year for which the credit is claimed. 
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<center>- 1 -</center>

0001|     The credit may be claimed for each taxable year in which the
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0002|     taxpayer makes qualified educational expenditures.
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0003|               B.  A husband and wife who file separate returns
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0004|     for a taxable year in which they could have filed a joint
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0005|     return may each claim only one-half of the credit that would
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0006|     have been allowed on a joint return.
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0007|               C.  The credit provided in this section may only be
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0008|     deducted from the taxpayer's income tax liability.
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0009|               D.  As used in this section, "qualified educational
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0010|     expenditure" means a cash contribution to a public school or
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0011|     public post-secondary educational institution in New Mexico
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0012|     for any instructional or educational purpose for which the
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0013|     school or educational institution is authorized to expend
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0014|     money, including extracurricular activities and provision of
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0015|     merit awards for teachers, professors or other personnel based
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0016|     on established standards or criteria for outstanding teaching
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0017|     or other educational service or contribution deserving of
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0018|     recognition."
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0019|          Section 2.  APPLICABILITY.--The provisions of this act
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0020|     apply to taxable years beginning on or after January 1, 1998.
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0021|                              
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