Bill > SB170

This bill establishes two new tax credits, the "child care facility donation income tax credit" and the "child care facility donation corporate income tax credit," available to individuals and corporations, respectively, for monetary donations made to licensed child care facilities in New Mexico. These credits are designed to encourage support for child care services for children twelve years old and younger and will be in effect until January 1, 2037. To qualify, donations must be monetary, go to a facility meeting state subsidy enrollment requirements, be used to promote child care, and be certified by the early childhood education and care department. The maximum credit per taxpayer is $500,000, and the total amount of credits certified annually across both types of credits is capped at $10 million, with applications processed on a first-come, first-served basis. Any credit amount exceeding a taxpayer's tax liability will be refunded, and married individuals filing separately can claim half the credit of a joint return. The bill also clarifies that certain affiliations with child care facilities, such as ownership or being an investor, disqualify a donation from receiving the credit. The provisions of this act apply to taxable years beginning on or after January 1, 2026.

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=170&year=26