ADVANCE ELECTION FOR FEDERAL TAX PROGRAM

SJM004

SENATE JOINT MEMORIAL 4

57
th legislature
- STATE OF NEW MEXICO -
second session
, 2026

INTRODUCED BY

James G. Townsend and Larry R. Scott and Rex Wilson

and Jay C. Block

A JOINT MEMORIAL

REQUESTING THE GOVERNOR TO SUBMIT AN ADVANCE ELECTION TO
PARTICIPATE IN THE FEDERAL EDUCATION FREEDOM TAX CREDIT
PROGRAM.

WHEREAS, on July 4, 2025, the allowance of credit for
contributions of individuals to scholarship granting
organizations, also known as the federal education freedom tax
credit, was enacted pursuant to 26 U.S.C. Section 25F, as added
by Section 1201 of Public Law 118–234, creating the nation's
first federal scholarship tax credit program; and

WHEREAS, starting in 2027, taxpayers can claim up to one
thousand seven hundred dollars ($1,700) in dollar-for-dollar
tax credits for donations to nonprofit scholarship granting
organizations that award scholarships to kindergarten through
twelfth grade students, with a focus on supporting low-income
families and students with special needs; and

WHEREAS, the federal education freedom tax credit provides
for the flexible use of scholarships covering expenses for
tuition, fees, academic tutoring, special needs services in the
case of a special needs beneficiary, books, supplies and other
equipment that are incurred in connection with the enrollment
or attendance of the designated beneficiary of the trust as an
elementary or secondary school student at a public, private or
religious school; and

WHEREAS, this historic initiative can expand educational
freedom nationwide at no cost to state budgets and without new
regulatory burdens, empowering families in need to access
tailored educational opportunities that address barriers to
equity and success; however, scholarship granting organizations
can only receive donations in states that formally opt into the
federal education freedom tax credit program; and

WHEREAS, if states do not elect to participate in the
program, donors who wish to claim the federal tax credit may
direct their charitable contributions to scholarship granting
organizations in other participating states instead, and as a
result, students and families in nonparticipating states,
particularly those from underserved communities, may miss out
on new educational opportunities funded by private donations;
and

WHEREAS, the decision to participate in the federal
education freedom tax credit program rests entirely with the
governor of each state, requiring no legislative action and
offering a straightforward path to enhance support for
vulnerable families; and

WHEREAS, governors across the political spectrum,
including in neighboring states Texas and Colorado, recognize
the federal education freedom tax credit as a bipartisan path
to educational equity, offering critical support for students
who have historically faced barriers to opportunity; and

WHEREAS, by opting into this program, New Mexico would
affirm its commitment to prioritizing families in need,
signaling to scholarship granting organizations, entrepreneurs
and charitable donors that the state is dedicated to expanding
educational opportunities for all children, fostering economic
prosperity and closing achievement gaps without diverting funds
from public schools; and

WHEREAS, delaying this decision may cause charitable
contributions to be sent to other states that act more quickly,
where public support for participation in the tax credit
program is strong and bipartisan; and

WHEREAS, recent national polls, including those from
nonpartisan organizations like yougov and the American
federation for children, show that approximately seventy
percent of registered voters nationwide, including majorities
of Democrats, Republicans and Independents, want their state
governors to opt into the federal education freedom tax credit
program, with a plurality calling for immediate action to
benefit families; and

WHEREAS, among poll respondents with school-age children
at home, nearly eighty percent stated they are likely to apply
for a scholarship if given the chance, highlighting the
program's potential to directly aid working families and
promote inclusive access to quality education;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE
STATE OF NEW MEXICO that, in consideration of the significant
public importance of supporting the availability of educational
scholarships in New Mexico, especially for low-income and
special needs students, the simplicity of the opt-in process
for the federal education freedom tax credit program and the
once-in-a-generation opportunity this program presents to
advance equity and family support without impacting state
resources, the governor be requested to submit an advance
election to participate in the program as soon as possible; and

BE IT FURTHER RESOLVED that a copy of this memorial be
transmitted to the governor.

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