Bill > HB207

This bill, titled the "Equal Educational Access Scholarship Act," establishes a program to provide scholarships for eligible students to attend qualified nonpublic schools of their parents' choice, with the goal of encouraging contributions to these educational initiatives through tax credits. An "eligible student" is defined as one from a household that qualifies for reduced-price lunches, has attended a New Mexico public school for a full year or is new to the state, and resides in New Mexico while receiving the scholarship. A "qualified school" is a nonpublic elementary, middle, or secondary school in New Mexico, excluding home schools. The bill outlines the process for "tuition scholarship organizations" (organizations that provide these scholarships) to become certified by the Public Education Department, requiring them to be federally tax-exempt, award at least 90% of contributions as scholarships, conduct background checks on staff, and maintain financial accountability. These organizations will issue "contribution receipts" to donors, which are necessary for claiming tax credits. The bill creates an "equal educational access scholarship income tax credit" for individuals and an "equal educational access scholarship corporate income tax credit" for corporations, allowing them to claim 80% of their contributions to certified tuition scholarship organizations, up to certain limits, as a credit against their state income taxes. There is an annual aggregate cap of $5 million for both types of tax credits, and applications are processed in the order they are received. The Public Education Department is responsible for administering the act, certifying organizations, and reporting on the program's effectiveness, while the Taxation and Revenue Department will manage the tax credit applications and issue contribution receipts.