FOSTER CARE ORGANIZATION TAX CREDIT

SB 304 creates a New Mexico income tax credit for residents who contribute to qualifying foster care organizations. Taxpayers can claim a credit of $500 (for single filers, heads of household, or surviving spouses) or $1,000 (for married couples filing jointly) per year. To qualify, the organization must be a 501(c)(3) nonprofit that spends at least half its budget on foster care services for at least 200 New Mexico residents annually, verified by the state tax department. Taxpayers must provide the organization’s name and contribution amount when filing their state income tax return.