HB 437 New Mexico House · 2025 Regular Session

FOSTER CARE ORGANIZATION TAX CREDIT

HB 437 creates a tax credit for New Mexico residents who donate to qualifying foster care organizations. The credit provides $500 for most individuals and $1,000 for married couples filing jointly, with unused portions carried forward for up to five years if they exceed current tax liability. To qualify, organizations must have federal 501(c)(3) status, serve at least 200 foster care youth in New Mexico, and spend at least half their budget on foster care services like medical care, education support, and activities promoting normal childhood experiences. The credit applies to tax years beginning January 1, 2025, and requires documentation from both donors and organizations to verify eligibility.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 17, 2025 Last action Jun 3, 2025

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What changed between versions

introduced version → HC substitute · 6 edits

MODERATE

The bill was amended to change how the foster care tax credit is calculated, add a delayed repeal provision, and expand definitions of who qualifies for the credit and what services count. The original version had a fixed credit amount, while the substitute version ties the credit to the actual contribution amount (up to a cap). A new section was added to repeal the credit after 2030, and the definition of 'foster care services' was expanded to include more support activities.

Scope change

The bill now includes a delayed repeal provision that will end the credit on January 1, 2031, and clarifies when the credit applies to taxable years.

FISCAL

Changed the credit amount from a fixed dollar amount to equal the actual contribution made, capped at $500 for individuals and $1,000 for married couples filing jointly.

TIMELINE

Added a delayed repeal provision that will end the tax credit on January 1, 2031.

DEFINITION

Expanded the definition of 'foster care services' to include additional support activities like kinship guardianship support and caregiver assistance.

Added a new definition for 'qualified individual' to clarify who counts toward the organization's service requirements, including foster children and youth aging out of foster care.

REQUIREMENT

Added a new provision allowing taxpayers to claim the credit for contributions made within 15 days after the end of the tax year, applying it to either the current or prior year.

ELIGIBILITY

Added a provision preventing taxpayers from claiming both a tax deduction and tax credit for the same contribution.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 4, 2025

Lower · Passed

DO NOT PASS, replaced with committee substitute

lower

Feb 17, 2025

Introduced

Sent to House Health & Human Services Committee & House Taxation & Revenue Committee

lower

4 primary · 0 co-sponsors