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 outlines the criteria for eligible students, who must come from households with income below a certain threshold and have attended a public or qualifying home school prior to receiving a scholarship.

Additionally, the bill introduces two new 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 and provisions for inflation adjustments starting in 2027. Both credits require certification from the public education department and can be carried forward if they exceed the taxpayer's liability. The bill aims to enhance educational opportunities for low-income students while providing financial incentives for contributions to scholarship organizations.