This bill proposes a new exemption from state income tax for individuals who serve as foster parents, guardians of their grandchildren, or adoptive grandparents. Specifically, it states that the income of these individuals will be exempt from state income tax for the entire taxable year, provided that the child or grandchild is under the age of eighteen during that year. The bill also mandates that the exemption be included in the tax expenditure budget, which will detail the annual aggregate cost of the exemption.

The new legal language introduced in this bill defines key terms such as "foster parent" and "guardian," clarifying the eligibility criteria for the tax exemption. The provisions of this act are set to take effect for taxable years beginning on or after January 1, 2025.