CHILD CARE FACILITY DONATION TAX CREDIT

SB 170 creates a tax credit for New Mexico taxpayers who donate money to licensed child care facilities serving children under 12. Individuals and businesses can claim a credit equal to their donation (up to $500,000 annually), reducing their state income tax bill or receiving a refund if the credit exceeds taxes owed. To qualify, donations must be monetary, go to facilities meeting state enrollment standards for child care subsidies, and be certified by the Early Childhood Education and Care Department. The total annual credit value across all taxpayers is capped at $10 million, with applications processed in order of receipt. This policy directly affects donors and licensed child care facilities, aiming to support child care access through tax incentives.