44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO TAXATION; PROVIDING AN INCOME TAX CREDIT FOR CONTRIBUTIONS TO PUBLIC SCHOOLS AND PUBLIC POST-SECONDARY EDUCATIONAL INSTITUTIONS IN NEW MEXICO.

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] CREDIT--EDUCATIONAL CONTRIBUTIONS.--

A. To encourage support for public schools and public post-secondary educational institutions in New Mexico, any taxpayer who files an individual New Mexico income tax return and who is not a dependent of another individual may claim a credit not to exceed one hundred dollars ($100) in an amount equal to qualified educational expenditures made by the taxpayer in the taxable year for which the credit is claimed.

The credit may be claimed for each taxable year in which the taxpayer makes qualified educational expenditures.

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.

D. As used in this section, "qualified educational expenditure" means a cash contribution to a public school or public post-secondary educational institution in New Mexico for any instructional or educational purpose for which the school or educational institution is authorized to expend money, including extracurricular activities and provision of merit awards for teachers, professors or other personnel based on established standards or criteria for outstanding teaching or other educational service or contribution deserving of recognition."

Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 1999.