House committee tables bill that would double New Mexico's Working Families Tax Credit
Loading...
Summary
Lawmakers heard testimony that HB296 would double the Working Families Tax Credit, potentially boosting average family benefits from about $850 to as much as $1,900; after questions about administration and eligibility the committee voted to table the bill for now.
Sponsor presentation and public support: Lawmakers considered House Bill 2 96, which would double the state's Working Families Tax Credit, a refundable credit for taxpayers with earned income. The bill's sponsor said the latest Fiscal Impact Report estimates some families could receive up to $1,900 more annually under the proposal and argued the change would increase work incentives and lower program error rates. Jonathan Salazar of New Mexico Voices for Children and faith and advocacy groups voiced support during public comment, calling the expansion a targeted way to help lower‑income families.
Committee questions and clarifications: Committee members asked whether foster families qualify and how the proposal compares to a previous bill (HB264) that targeted adults without children and was vetoed last year. An expert testifying for the sponsor said foster families would qualify if a child had been in the home more than six months and the family met the income requirements. Members also reviewed FIR estimates, noting current average benefit levels of roughly $850 per family and asking whether changes in benefit size would change behavioral impacts across income groups. Witnesses and members emphasized that the credit is progressive in dollar‑for‑dollar terms and targets families earning near minimum wage.
Policy context and values: During debate, a committee member emphasized the distinction between tax credits and direct safety‑net programs, noting that tax credits require earned income to qualify and therefore operate differently than programs such as Medicaid. Several members framed the bill as an investment in family stability and economic participation.
Committee action: Representative Duncan moved to table HB296; the motion carried without recorded opposition and HB296 was tabled. The committee did not adopt the bill or amendments on the record today; sponsors and members flagged outstanding implementation questions that could be addressed in subsequent meetings.
What happens next: With HB296 tabled, sponsors may revise statutory language or seek additional fiscal and implementation clarifications before bringing the bill back to committee.