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HOUSE BILL 225
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Alan T. Martinez
AN ACT
RELATING TO TAXATION; CREATING THE FOSTER PARENT INCOME TAX
CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Income Tax Act is enacted
to read:
"[NEW MATERIAL] CREDIT--FOSTER PARENT INCOME TAX CREDIT.--
A. A taxpayer who is a resident, who is not a
dependent of another individual and who is a foster parent may
claim a credit against the taxpayer's tax liability imposed
pursuant to the Income Tax Act. The credit authorized pursuant
to this section may be referred to as the "foster parent income
tax credit".
B. The amount of the tax credit shall be in an
amount equal to one hundred dollars ($100) for each week and
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for each child the taxpayer fosters in the taxable year in
which the tax credit is claimed.
C. A taxpayer shall apply for certification of
eligibility for the tax credit from the children, youth and
families department on forms and in the manner prescribed by
that department. Except as provided in Subsection E of this
section, only one tax credit shall be certified per taxpayer
per taxable year. If the children, youth and families
department determines that the taxpayer meets the requirements
of this section, that department shall issue a dated
certificate of eligibility to the taxpayer providing the amount
of tax credit for which the taxpayer is eligible and the
taxable years in which the credit may be claimed. The
children, youth and families department shall provide the
department with the certificates of eligibility issued pursuant
to this subsection in an electronic format at regularly agreed
upon intervals.
D. That portion of the tax credit that exceeds a
taxpayer's income tax liability in the taxable year in which
the credit is claimed shall be refunded to the taxpayer.
E. Married individuals filing separate returns for
a taxable year for which they could have filed a joint return
may each claim only one-half of the tax credit that would have
been claimed on a joint return.
F. A taxpayer allowed to claim a tax credit
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pursuant to this section shall claim the tax credit in a manner
required by the department. The credit shall be claimed within
three taxable years of the end of the year in which the
children, youth and families department certifies the credit.
G. The credit provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the total annual aggregate cost of
the credit.
H. As used in this section, "foster parent" means a
person licensed or certified by the children, youth and
families department or a child placement agency to provide care
for children in the custody of the department or agency."
SECTION 2. APPLICABILITY.--The provisions of this act
apply to taxable years beginning on or after January 1, 2025.
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