Committee gives due pass to bill doubling New Mexico's Working Families Tax Credit

The sponsor introduced House Bill 296 to double New Mexico's Working Families Tax Credit. The sponsor noted that in 2024 more than 200,000 New Mexico families used the existing credit and that doubling the credit would make New Mexico’s program one of the largest work incentives in the country. The fiscal-impact report (FIR) cited during testimony estimated an average additional benefit of roughly $1,900 per household under the doubled credit and a general-fund impact on the order of $138 million in FY27, depending on participation.

Advocates including New Mexico Voices for Children and the League of Women Voters testified in support, saying targeted tax credits help reduce poverty and increase local spending. Committee members questioned administrative differences with other credits in the session package and the program’s impact on the general fund; the sponsor said the bill was structured to be administrable by Taxation and Revenue and potentially adjustable for capacity.

The committee moved a due-pass recommendation with no recorded opposition in committee. The sponsor said the measure would proceed to the Taxation and Revenue Committee and noted flexibility to adjust scope or targeting depending on revenue capacity.