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Committee tables bill offering $100-per-week foster-parent tax credit after equity and tax-advice concerns
Summary
Lawmakers tabled House Bill 225, which would have created a state income tax credit of $100 per week per foster child, after members raised questions about whether a delayed tax credit would benefit the lowest-income caregivers and urged the sponsor to consult CYFD and tax experts.
Representative Martinez brought House Bill 225 to the House Health & Human Services Committee seeking to create a state income tax credit for foster parents worth $100 per child, per week. The committee voted to table the bill, 5–3, after several members said the measure needs further work on how it would affect low-income caregivers and how it would interact with existing federal and state tax provisions.
The bill would allow a foster-parent household to claim $100 per week for each foster child; Representative Martinez described it as “one tool in the toolbox” to recruit and retain foster parents. “We all know that there is a crisis when it comes to recruiting and retaining foster parents,” Representative Martinez said in opening remarks. She said married filers who file separately could each claim half of the credit so the couple still receives a total of $100 per child per week.
Committee members questioned whether a tax credit in the form proposed would be sufficient or meaningful for lower-income families. Representative Kate noted that federal and state tax benefits for dependents vary by income, and that a large credit may not help households with little or no state tax liability. “You get a deeper deduction if you make under $25,000,” Representative Kate said when discussing how tax credits apply across income levels.
Advocates and stakeholders who spoke said the idea had merit but asked that the bill be refined. Micah Betsini of Bold Futures urged consideration of how incentives could support family reunification, saying tax measures might not line up with program goals. Marilyn Bette, founder and executive director of New Mexico Child First Network and a former foster parent, said foster parents “don’t do this for the money” but welcomed efforts to recruit and retain caregivers; she also urged an independent ombudsman to support foster families.
Representative Herndon moved to table the bill so the sponsor could consult with CYFD Secretary Teresa Casados and tax experts; that motion prevailed. During the roll call, Representative Anaya, Representative Kate, Representative Ferrari, Representative Sena Cortez and the chair voted yes to table; Representatives N. Chavez, Jones and Martinez voted no. By a vote of 5 to 3, the committee tabled the bill.
The transcript shows the sponsor and several members agreed to continue work on the concept: Representative Martinez said she would meet with the secretary and continue refining the proposal. The committee recorded that tabling the bill may allow time for those consultations before the measure is brought back to the committee.
Ending: The sponsor said she will continue conversations with CYFD and tax experts and will return the bill when she and the agency are aligned on details.
