EDUCATIONAL SCHOLARSHIPS & TAX CREDIT

HB 324 would create a new program in New Mexico allowing school tuition organizations to provide scholarships to low-income students for private school attendance, while offering tax credits to donors. It directly affects eligible low-income students (defined as those meeting federal lunch program income thresholds and previously attending public or home schools), private schools in New Mexico, and nonprofit organizations administering the scholarships. Key provisions include requiring organizations to allocate at least 90% of donations to scholarships, prohibiting donor-designated students, mandating annual public reporting of scholarship details, and establishing individual and corporate income tax credits for contributing to these programs. The bill also sets strict audit requirements for larger organizations and defines "eligible students" to maintain eligibility through graduation or age 21.