FOSTER PARENT & GUARDIAN INCOME TAX

SB 272 exempts foster parents, guardians appointed under the Kinship Guardianship Act for their grandchild, and adoptive grandparents from New Mexico state income tax for caring for a child or grandchild under 18 during the entire taxable year. The bill applies to tax years starting January 1, 2025, and requires the exemption to be included in the state’s tax expenditure budget. It directly affects caregivers licensed or certified by child welfare agencies, or legally appointed as guardians for grandchildren, by reducing their taxable income. The policy change provides a direct tax benefit to these specific caregivers without altering other tax rules.