45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO TAXATION; PROVIDING AN INCOME TAX DEDUCTION FOR TAXPAYERS WHO PROVIDE A HOME SCHOOL FOR THEIR CHILDREN.

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--HOME SCHOOL.--

A. A resident who files an individual New Mexico income tax return and is not a dependent of another taxpayer may claim a deduction from net income for each child who is a dependent of the resident and who is:

(1) a school-age person who was registered with the state department of public education as attending a home school, as that term is defined in the Public School Code, during the school year that ended during the taxable year; and

(2) claimed as a dependent on the resident's federal income tax return or would have been entitled to be claimed as a dependent on the resident's federal return, if the resident did not file a federal return.

B. The amount of the deduction that may be claimed under this section is an amount equal to three thousand five hundred dollars ($3,500) for each dependent qualified pursuant to Subsection A of this section who attended a home school for the entire school year ending in the taxable year. The amount of the deduction shall be one-half of that amount for a child who attended a home school for less than the entire school year but at least one-half of the school year ending during the taxable year. A deduction may not be claimed for a child who attended a home school for less than one-half of the school year ending in the taxable year.

C. A husband and wife who file separate returns for the taxable year in which they could have filed a joint return may each claim only one-half of the deduction that would have been allowed on the joint return.

D. The secretary may adopt regulations or instructions to require reasonable documentation of home schooling.

E. As used in this section, "dependent" means "dependent" as defined in Section 152 of the Internal Revenue Code, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident."

Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2001.