This bill proposes a new section to the Income Tax Act that exempts from state income tax the income of individuals who are foster parents, guardians of their grandchildren, or adoptive grandparents, provided that the child or grandchild is under eighteen years of age during the taxable year. The exemption aims to support families in these caregiving roles and will be included in the tax expenditure budget, which outlines 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 someone licensed or certified to care for children in custody and "guardian" as a person appointed under the Kinship Guardianship Act. This legislation seeks to provide financial relief to those who take on the responsibilities of fostering or raising their grandchildren.