FOSTER PARENT & GUARDIAN TAX CREDIT

SB 335 creates a New Mexico income tax credit of $500 per month for foster parents and court-appointed guardians caring for a child under 18. To qualify, a taxpayer must be a New Mexico resident, not a dependent, and provide care for a child for over 50% of the month. The maximum annual credit is $6,000, and eligibility requires certification from the Children, Youth and Families Department. The credit reduces tax liability, with any excess refunded to the taxpayer, and applies to taxable years beginning January 1, 2025.