SENATE FINANCE COMMITTEE SUBSTITUTE FOR

SENATE BILL 790

47th legislature - STATE OF NEW MEXICO - second session, 2006

AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; PROVIDING FOR AN INCOME TAX EXEMPTION FOR REIMBURSEMENTS FROM THE SERVICE MEMBERS' LIFE INSURANCE REIMBURSEMENT FUND.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Income Tax Act is enacted to read:

     "[NEW MATERIAL] EXEMPTION--NEW MEXICO NATIONAL GUARD MEMBER PREMIUMS PAID FOR GROUP LIFE INSURANCE.--An individual who receives reimbursement from the service members' life insurance reimbursement fund may claim an exemption in the amount of that reimbursement, from income includable, except for this exemption, in net income."

     Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2006.