The bill establishes a new income tax credit for taxpayers who contribute to qualifying foster care organizations in New Mexico. 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. The credit amount is capped at $500 for single filers 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 being a federally recognized 501(c)(3) organization and spending at least 50% of its budget on foster care services.

Additionally, the bill includes a delayed repeal provision, stating that the credit will expire on 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.