Bill > HB444

This bill establishes two new income tax credits for New Mexico taxpayers, effective for taxable years beginning on or after January 1, 2015. The first, the "tuition scholarship income tax credit," allows individuals to receive a credit for contributions made to a school tuition organization, which is defined as a non-profit organization that provides financial aid for students to attend accredited private elementary or secondary schools, with specific limits on the amount of aid per student. This credit is capped at $1,000 per year and cannot be claimed if the contribution is already deducted as an itemized deduction. Any unused credit can be carried forward for up to five years but is not refundable. The second credit, the "extracurricular activity income tax credit," allows taxpayers to claim a credit for contributions made to eligible public schools (middle, junior high, or high schools, or elementary schools with sixth grade) to support extracurricular activities, which are defined as those sanctioned by the New Mexico activities association. This credit is capped at $500 per year, also cannot be claimed if the contribution is itemized, and unused portions can be carried forward for up to five years without being refunded. Both credits require a standardized receipt from the organization or school and annual reporting by the department to evaluate their effectiveness.