This bill establishes a framework for school tuition organizations in New Mexico to award educational scholarships to low-income students wishing to attend private schools. It authorizes the public education department to oversee these organizations, which must allocate at least 90% of their annual revenue from contributions to scholarships, ensure scholarships are available to students from multiple private schools, and maintain transparency through reporting requirements. The bill also defines "eligible students" as those from households with incomes below a certain threshold, and it stipulates that scholarships cannot be awarded for public or tribal schools.

Additionally, the bill introduces two tax credits: the Educational Scholarship Income Tax Credit for individual taxpayers and the Educational Scholarship Corporate Income Tax Credit for businesses. Taxpayers can receive credits for contributions made to school tuition organizations, with specific limits based on filing status. The credits are subject to annual adjustments for inflation and can be carried forward if they exceed the taxpayer's liability. The bill mandates that these tax credits be included in the state's tax expenditure budget, ensuring accountability and oversight.