Bill > SB335

This bill creates a new tax credit for foster parents and guardians in New Mexico, allowing eligible taxpayers to claim a credit of $500 per month for each month they care for a child, with a maximum annual credit of $6,000. To qualify, the taxpayer must be a resident, not a dependent of another individual, and be a foster parent or guardian for more than half of each month claimed. Taxpayers must apply for certification from the Children, Youth and Families Department, which will verify their eligibility and issue a certificate. The credit is refundable, meaning if the credit exceeds the taxpayer's income tax liability, the excess will be refunded. For married couples filing separately, each spouse can claim half the credit they would have received on a joint return. The bill defines key terms such as "child" (an unemancipated individual under 18), "foster parent" (a person licensed to care for children in state custody), and "guardian" (a court-appointed caregiver under the Kinship Guardianship Act). The tax credit will apply to 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.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=335&year=25