The 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 against their tax liability for contributions made to these organizations, with a maximum credit of $500 for individuals and $1,000 for married couples filing jointly. To qualify, taxpayers must provide documentation of their contributions and the organization's compliance with specific requirements, including federal tax-exempt status and a commitment to spending at least fifty percent of their budget on foster care services.

Additionally, the bill includes a delayed repeal provision, stating that the credit will be repealed effective January 1, 2031. The provisions of the act will apply to taxable years beginning on or after January 1, 2025. The legislation aims to support foster care services in New Mexico by incentivizing contributions to organizations that provide essential support to foster children and families.