FOSTER PARENT TAX CREDIT

HB 225 creates a $100 weekly tax credit for each child a foster parent cares for in New Mexico, directly benefiting licensed foster parents who are state residents and not dependents of another person. To claim the credit, foster parents must obtain certification from the Children, Youth and Families Department, which will issue a certificate specifying the credit amount and eligible taxable years. Any credit exceeding a taxpayer's income tax liability will be refunded, and the credit must be claimed within three years of certification. This policy applies to taxable years beginning January 1, 2025, and will be tracked in the state's tax expenditure budget.