FOSTER PARENT TAX CREDIT

SB 88 creates a New Mexico income tax credit for foster parents and legal guardians caring for children. It provides a $500 monthly credit (up to $6,000 annually) for qualifying individuals who are licensed foster parents or court-appointed guardians of a child under 18. To claim the credit, applicants must get certification from the Children, Youth and Families Department, and only one credit per household is allowed per year. The credit applies to taxable years beginning January 1, 2026, and any excess credit beyond tax liability will be refunded.