New Mexico 2025 Regular Session

New Mexico House Bill HB437 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 437
29	29	57
30	30	TH LEGISLATURE
31	31	-
32	32
33	33	STATE
34	34
35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Mark Duncan and Stefani Lord and Jonathan A. Henry
48	48	and Cathrynn N. Brown
49	49	AN ACT
50	50	RELATING TO TAXATION; CREATING THE QUALIFYING FOSTER CARE
51	51	ORGANIZATION INCOME TAX CREDIT.
52	52	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
53	53	SECTION 1. A new section of the Income Tax Act is enacted
54	54	to read:
55	55	"[NEW MATERIAL] CREDIT--QUALIFYING FOSTER CARE
56	56	ORGANIZATION INCOME TAX CREDIT.--
57	57	A. A taxpayer who is a resident, who is not a
58	58	dependent of another individual and who makes a contribution to
59	59	a qualifying foster care organization may claim a credit
60	60	against the taxpayer's tax liability imposed pursuant to the
61	61	Income Tax Act. The credit authorized pursuant to this section
62	62	may be referred to as the "qualifying foster care organization
63	63	income tax credit".
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91	91	B. The amount of the credit shall be in an amount
92	92	equal to:
93	93	(1) for single individuals, married
94	94	individuals filing separate returns, heads of household and
95	95	surviving spouses, five hundred dollars ($500); and
96	96	(2) for married individuals filing joint
97	97	returns, one thousand dollars ($1,000).
98	98	C. To be eligible for a credit, a taxpayer shall
99	99	provide to the department the name of the qualifying foster
100	100	care organization to which a contribution is made and the
101	101	amount of contribution made. In addition, the organization
102	102	shall provide to the department written documentation that the
103	103	organization meets the requirements to be considered a
104	104	qualifying foster care organization pursuant to this section.
105	105	The documentation shall be signed by an officer of the
106	106	organization under penalty of perjury and shall include:
107	107	(1) documentation that demonstrates to the
108	108	department that the organization has been granted exemption
109	109	from the federal income tax by the United States commissioner
110	110	of internal revenue as an organization described in Section
111	111	501(c)(3) of the Internal Revenue Code;
112	112	(2) financial data indicating the
113	113	organization's budget for the organization's prior operating
114	114	year and the amount of that budget spent on foster care
115	115	services; and
116	116	.230823.1
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144	144	(3) a statement that the organization plans to
145	145	continue spending at least fifty percent of the organization's
146	146	budget on foster care services.
147	147	D. A taxpayer shall apply for certification of
148	148	eligibility for the credit from the department on forms and in
149	149	the manner prescribed by the department but shall include the
150	150	information described in Subsection C of this section. Only
151	151	one tax credit shall be certified per taxpayer per taxable
152	152	year.
153	153	E. That portion of the credit that exceeds a
154	154	taxpayer's income tax liability in the taxable year in which
155	155	the credit is claimed shall not be refunded to the taxpayer but
156	156	may be carried forward for five consecutive taxable years.
157	157	F. The credit provided by this section shall be
158	158	included in the tax expenditure budget pursuant to Section
159	159	7-1-84 NMSA 1978, including the total annual aggregate cost of
160	160	the credit.
161	161	G. As used in this section:
162	162	(1) "foster care services" means cash
163	163	assistance, medical care, child care, behavioral health
164	164	services, food, snacks at the qualifying foster care
165	165	organization's foster youth events, clothing, shelter,
166	166	character education programs, workforce development programs,
167	167	secondary education student retention programs, housing or
168	168	financial literacy services, activities to support, train and
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197	197	retain foster parents licensed or certified by the children,
198	198	youth and families department or a child placement agency to
199	199	provide care for children in the custody of the department or
200	200	agency in their role as a foster parent and activities to
201	201	support caregivers and guardians pursuant to the Kinship
202	202	Guardianship Act or any other assistance that is reasonably
203	203	necessary to meet basic needs or provide normalcy and that is
204	204	provided and used in New Mexico. As used in this paragraph,
205	205	"normalcy" means the condition of experiencing a typical
206	206	childhood by participating in activities that are age or
207	207	developmentally appropriate, as defined in 42 U.S.C. 675;
208	208	(2) "qualifying foster care organization"
209	209	means an organization that:
210	210	(a) has been granted exemption from the
211	211	federal income tax by the United States commissioner of
212	212	internal revenue as an organization described in Section
213	213	501(c)(3) of the Internal Revenue Code; and
214	214	(b) each operating year, provides foster
215	215	care services to at least two hundred qualified individuals in
216	216	New Mexico and spends at least fifty percent of its budget on
217	217	foster care services to qualified individuals in New Mexico;
218	218	and
219	219	(3) "qualified individual" means:
220	220	(a) a foster child. As used in this
221	221	subparagraph, "foster child" means: 1) a child in the custody
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250	250	of the children, youth and families department or a child
251	251	placement agency that may be placed with a person licensed or
252	252	certified by that department or agency to provide care for the
253	253	child; or 2) a participant in the fostering connections program
254	254	pursuant to the Fostering Connections Act; or
255	255	(b) a person who is under twenty-seven
256	256	years of age and whose reason for leaving foster care is: 1)
257	257	reaching eighteen years of age; 2) adoption or legal
258	258	guardianship after reaching fifteen years of age; or 3)
259	259	reunification after reaching fourteen years of age."
260	260	SECTION 2. APPLICABILITY.--The provisions of this act
261	261	apply to taxable years beginning on or after January 1, 2025.
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263	263	.230823.1