The proposed bill establishes a new income tax credit for taxpayers in New Mexico who contribute to qualifying foster care organizations. This credit, known as the "qualifying foster care organization income tax credit," allows eligible taxpayers to claim a credit of $500 for single individuals and $1,000 for married couples filing jointly. To qualify for the credit, taxpayers must provide documentation of their contributions and the qualifying organization's compliance with specific requirements, including federal tax-exempt status and a commitment to allocate at least 50% of their budget to foster care services.

Additionally, the bill outlines the application process for taxpayers to obtain certification for the credit, stipulating that any unused portion of the credit can be carried forward for up to five years. The legislation also defines key terms related to foster care services and qualifying organizations, ensuring that the credit supports entities that significantly contribute to the welfare of foster children in New Mexico. The provisions of this act will take effect for taxable years beginning on or after January 1, 2025.