New Mexico 2026 Regular Session Status: In Committee 5 R cosponsors

HB 264 — VARIOUS INCOME TAX DEDUCTIONS

Last action — action postponed indefinitely

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the House. Introduced January 30, 2026. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House.

Prognosis

Stalled 24% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 5 sponsors

    5 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (5 R).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill provides new income tax deductions for tips, qualified overtime compensation, and social security income, repeals the Working Families Tax Credit, establishes an Earned Income Tax Credit and a Foster Parent and Guardian Income Tax Credit, and modifies certain medical care expense deductions.

  • N/A

    [NEW MATERIAL] DEDUCTION--INCOME FROM QUALIFIED TIPS.-- A. A taxpayer may claim a deduction from net income in an amount equal to the amount of qualified tips for which the taxpayer is eligible to deduct pursuant to 26 U.S.C. 224, B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction to the department in a manner required by the department. C. The deduction provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the deduction. D. As used in this section, "qualified tips" means "qualified tips" as defined in 26 U.S.C. 224(d).

    This creates a new income tax deduction for tips.

  • N/A

    [NEW MATERIAL] DEDUCTION--QUALIFIED OVERTIME COMPENSATION.-- A. A taxpayer may claim a deduction from net income in an amount equal to the amount of qualified overtime compensation for which the taxpayer is eligible to deduct pursuant to 26 U.S.C. 225, B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction to the department in a manner required by the department. C. The deduction provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the deduction. D. As used in this section, "qualified overtime compensation" means "qualified overtime compensation" as defined in 26 U.S.C. 225(c).

    This creates a new income tax deduction for qualified overtime compensation.

  • N/A

    [NEW MATERIAL] DEDUCTION--SOCIAL SECURITY INCOME DEDUCTIBLE PURSUANT TO FEDERAL LAW.-- A. A taxpayer may claim a deduction from net income in an amount equal to the amount of social security income for which the taxpayer is eligible to deduct pursuant to 26 U.S.C. 151, B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction to the department in a manner required by the department. C. The deduction provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the deduction.

    This creates a new income tax deduction for social security income.

  • Section 7-2-18.15 NMSA 1978

    The Working Families Tax Credit is repealed. → A. The credit provided by this section may be referred to as the "earned income tax credit". A taxpayer who is an eligible individual may claim the earned income tax credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act in an amount equal to the credit percentage of so much of the taxpayer's earned income for the taxable year as does not exceed the earned income amount; provided that the amount of the credit shall not exceed the excess of: (1) the credit percentage of the earned income amount; over (2) the phaseout percentage of so much of the adjusted gross income or, if greater, the earned income of the taxpayer for the taxable year as exceeds the phaseout amount.

    This repeals the Working Families Tax Credit and establishes the Earned Income Tax Credit.

  • N/A

    [NEW MATERIAL] CREDIT--FOSTER PARENT AND GUARDIAN INCOME TAX CREDIT.-- A. For taxable years ending prior to January 1, 2032, a taxpayer who is a resident, who is not a dependent of another individual and who is a foster parent or guardian of a child may claim a credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act. B. The amount of the tax credit shall be in an amount equal to two hundred fifty dollars ($250) for each month the taxpayer is a foster parent or guardian of a child in the taxable year in which the tax credit is claimed; provided that the taxpayer shall be a foster parent or guardian for more than fifty percent of that month; and provided further that the maximum amount of credit that may be claimed by a taxpayer in a taxable year is three thousand dollars ($3,000).

    This establishes a new tax credit for foster parents and guardians.

Action History

  1. action postponed indefinitely

  2. referred to House Taxation & Revenue Committee

  3. withdrawn from committee

  4. Sent to House Health & Human Services Committee & House Taxation & Revenue Committee

Sponsors

Sponsorship breakdown

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5 sponsors · 0 co-sponsors · 107 not signed on

Sponsors (5)

Co-sponsors (0)

None.

Not signed on (107)

107 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 264?
HB 264 is sponsored by William A. Hall II (Republican), Rebecca Dow (Republican), Jonathan A. Henry (Republican), Mark B. Murphy (Republican), and Mark Duncan (Republican).
What is the current status of HB 264?
This bill is in committee in the House. Introduced January 30, 2026. It must pass committee before a floor vote.
Where can I track HB 264?
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