Understanding appropriation, new tax and tax credit bills
League of Women Voters of New MexicoUnderstanding appropriation, new tax and tax credit billsRevised December 15, 2025
Appropriation Bills
Legislation requesting an appropriation for a program will usually go to one committee that deals with the subject (for instance, in the House a health bill will go to the House Health & Human Services Committee). for a vote. Most bills pass that committee, but not all. That is usually the last vote taken on the bill. If it’s a House bill, it will go to the House Appropriations and Finance Committee, and they will decide whether to include some or all of it in the appropriation in House Bill 2 (HB2) – the budget bill. This is done behind closed doors without a vote on the specific bill.
If it is a Senate bill, it will go a subject committee and then to Senate Finance to see if they want to add it to HB2 when that bill comes over from the House.
In either case, the bill with its bill number never goes to the House or Senate floor for a vote.
It’s always best to get it added in the House version of HB2.
Tax Credits bills
A House tax credit bill will go to a related subject committee (tax credit for health care professionals would go to the House Health & Human Services Committee). Then, if it passes the committee, it will be sent the House Taxation and Revenue Committee. They will decide whether or not to include it in the overall tax package.
A Senate tax credit bill will go to a related subject committee and then to Senate Taxation, Business and Transportation. They will decide whether or not to add it to the tax bill that comes over from the House.
In either case, the bill never goes to the House or Senate floor for a vote.
New Tax Bills
A new House tax bill (like an increase or decrease in the Personal Income Tax) usually goes directly to the House Taxation and Revenue Committee and they decide whether to include it in the overall tax package.A new Senate tax bill will go to Senate Taxation, Business and Transportation Committee. They will decide whether to include it in the overall tax package that comes over from the House.That overall tax package will then go to Senate Finance and they will have the final say on whether to include it in HB2 that comes over from the House.
Further notes
When HB2 is passed, there is an overall line item for new taxes (plus) or tax credits (minus).So, the net figure has to equal that line item.The Senate always amends the budget bill (HB2) that comes over from the House. So, it then has to be sent back to the House floor for concurrence. That is usually no problem.In the past, there has been a real difference between the House and Senate tax packages. That means it has to go to a Conference Committee made up of members of each chamber, appointed by the leadership. What is agreed to by the Conference Committee is what goes into HB2.