Bill > HB225

This bill creates a new tax credit for foster parents in New Mexico, designed to provide financial support for individuals who care for children in the state's foster care system. The tax credit allows eligible foster parents who are residents and not dependents of another individual to claim $100 for each week they foster a child during a taxable year. To receive the credit, foster parents must apply for certification from the Children, Youth and Families Department, which will issue a dated eligibility certificate specifying the credit amount. If the tax credit exceeds the taxpayer's income tax liability, the excess will be refunded. Married couples filing separately can each claim half the credit they would have received on a joint return. Foster parents must claim the credit within three taxable years of its certification, and the credit is limited to one per taxpayer per year, with "foster parent" defined as someone licensed or certified by the state's child welfare agency to care for children in its custody. The tax credit will become applicable for taxable years beginning on or after January 1, 2025, and will be included in the state's tax expenditure budget to track its total annual cost.

Health and Social Services

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=225&year=25