Rep. Lente introduces bill in New Mexico House to expand working families tax credit

The new bill authored by State Rep. Derrick Lente in the New Mexico House aims to expand eligibility and increase benefits for the state’s working families tax credit, according to the New Mexico General Assembly.

The bill, introduced as HB 296 during the 57th general assembly on Tuesday, Feb. 3, was formally listed with the short title: ’Increase Working Family Tax Credit’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill increases New Mexico’s working families tax credit to 50% of the federal earned income tax credit. It allows resident taxpayers to claim the state credit based on the federal amount they are eligible for, or would be eligible for but for federal identification number rules. It also lets residents ages 18 to 24 claim the credit even if they are excluded from the federal credit due to age requirements. The credit remains refundable, meaning any amount above a taxpayer’s income tax liability is paid as a refund. The changes apply to taxable years beginning on or after Jan. 1, 2026.

Derrick Lente, the chair of the House Taxation & Revenue Committee, proposed another 12 bills during the 57th general assembly. He is also a member of the House Commerce & Economic Development Committee, a member of the Legislative Finance Committee, the vice chair of the Revenue Stabilization & Tax Policy Committee, and a member of the Public School Capital Outlay Oversight Task Force Committee.

In New Mexico, the legislative process involves multiple steps: a bill is introduced in either the House or Senate, assigned to a committee for review, debated and voted on in both chambers, and, if approved, sent to the governor for signature or veto. The Legislature meets annually, commencing on the third Tuesday in January, with 60-day sessions in odd-numbered years and 30-day sessions in even-numbered years. While numerous bills are introduced each session, only a fraction successfully navigate the process to become law. You can read more about bills and other measures here.