SENATE BILL 272

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Crystal Brantley

 

 

 

 

 

AN ACT

RELATING TO TAXATION; EXEMPTING FROM INCOME TAX THE INCOME OF AN INDIVIDUAL WHO IS A FOSTER PARENT, IS A GUARDIAN OF THE INDIVIDUAL'S GRANDCHILD OR HAS ADOPTED THE INDIVIDUAL'S GRANDCHILD.

 

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] EXEMPTION--INCOME OF FOSTER PARENTS, GUARDIAN GRANDPARENTS AND ADOPTIVE GRANDPARENTS.--

          A. The income of an individual who, during the entire taxable year, is a foster parent of a child, is a guardian of the individual's grandchild or has adopted the individual's grandchild is exempt from state income tax for that taxable year; provided that the child or grandchild has not reached eighteen years of age during the taxable year.

          B. The exemption provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the exemption.

          C. As used in this section:

                (1) "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; and

                (2) "guardian" means a person appointed as a guardian pursuant to the Kinship Guardianship Act."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2025.

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