Bill > HB437

This bill creates a new income tax credit for New Mexico residents who make contributions to qualifying foster care organizations. Taxpayers can claim a credit of $500 for single filers or those filing as head of household, and $1,000 for married couples filing jointly. To be eligible, the foster care organization must be a 501(c)(3) nonprofit that provides foster care services to at least 200 qualified individuals in New Mexico and spends at least 50% of its budget on these services. Qualified individuals include foster children in state custody or the fostering connections program, as well as individuals under 27 who have aged out of foster care, been adopted, or reunified with family. Taxpayers must provide documentation of their contribution and the organization's eligibility to the state department. Any unused credit can be carried forward for up to five years. The bill defines "foster care services" broadly, including assistance like medical care, child care, education support, housing, and other services that help meet basic needs or provide a typical childhood experience. The tax credit will become applicable for taxable years beginning on or after January 1, 2025, providing a financial incentive for supporting foster care organizations in New Mexico.

Health and Social Services

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=437&year=25