The civic record
Read. Follow. Verify.New Mexico House Bill 264 Creates Income Tax Deductions for Tips, Overtime, and Social Security, Repeals and Replaces Working Families Tax Credit with Earned Income Tax Credit, Establishes Foster Parent Credit, and Expands Medical and Health Care Tax Deductions
Last action · February 2, 2026: Referred to: HTRCSponsors: Rebecca Dow and 5 others
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What This Bill Proposed
House Bill 264 enacts state income tax deductions for qualified tips, qualified overtime compensation, and Social Security income, replaces the working families tax credit with an earned income tax credit, and creates a new foster parent and guardian income tax credit. It also expands medical care expense deductions to taxpayers of all income levels and extends a for health care practitioners to include patient through July 1, 2032.
This measure alters tax liabilities and state revenue by introducing multiple new deductions and credits for workers, seniors, foster parents, and patients, while restructuring low-income tax credits and extending health care provider tax exemptions.
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Taxpayers earning tips or overtime compensation
Taxpayers may claim new state income tax deductions for qualified tips and overtime compensation.
Foster parents and guardians
Eligible foster parents and guardians may claim a new tax credit of $250 per month up to $3,000 annually.
Health care practitioners and associations of health care practitioners
Health care practitioners benefit from an extended gross receipts tax deduction that now explicitly includes patient coinsurance, copayments, and deductibles through July 1, 2032.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
What new income tax deductions are created by House Bill 264?
How does the bill change the earned income tax credit?
Who is eligible for the foster parent and guardian income tax credit?
What changes are made to the medical care expense deduction?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
3 actions- Feb 2, 2026HouseCommitteeReferred to: HTRC
- Feb 2, 2026New Mexico LegislatureWithdrawn from committee or daily calendar for subsequent action
- Jan 30, 2026HouseCommitteeSent to HHHC - Referrals: HHHC/HTRC
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Show 1 more sponsor
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Replacement of Working Families Tax Credit
The bill repeals the existing working families tax credit and institutes a structured earned income tax credit with varying percentages and inflation adjustments starting in 2027.
Connected Entities
Sources
www.nmlegis.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 75)
- Controversy45Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz35Current news / social attention level
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