The 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 regarding the scholarships awarded. Additionally, the bill mandates that organizations report various financial details annually, including contributions received and scholarships awarded, and undergo financial audits or reviews based on their revenue levels.

Furthermore, 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 set for individuals and corporations. The credits are designed to be adjusted for inflation in subsequent years and can be carried forward if they exceed the taxpayer's liability. The provisions for these tax credits will apply to taxable years beginning on or after January 1, 2025.