This bill proposes a new section of the Income Tax Act that exempts from state income tax the income of individuals who are foster parents, guardians of their grandchildren, or have adopted their grandchildren. The exemption applies for the entire taxable year, provided that the child or grandchild is under eighteen years of age during that year. The bill also mandates that the exemption be included in the tax expenditure budget, detailing the annual aggregate cost of the exemption.

The provisions of this act will take effect for taxable years beginning on or after January 1, 2025. The bill defines "foster parent" as a person licensed or certified to care for children in custody and "guardian" as a person appointed under the Kinship Guardianship Act.