SENATE BILL 116

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Jay C. Block and Anthony L. Thornton

 

 

 

 

 

AN ACT

RELATING TO INCOME TAX; REMOVING THE LIMIT ON THE AMOUNT OF THE INCOME TAX EXEMPTION FOR UNIFORMED SERVICES RETIREMENT PAY.

 

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

     SECTION 1. Section 7-2-5.13 NMSA 1978 (being Laws 2022, Chapter 47, Section 6, as amended) is amended to read:

     "7-2-5.13. EXEMPTION--[ARMED FORCES] UNIFORMED SERVICES RETIREMENT PAY.--

          A. An individual who is [an armed forces] a uniformed services retiree or the surviving spouse of [an armed forces] a uniformed services retiree may claim an exemption in [an amount equal to thirty thousand dollars ($30,000) of armed forces] the amount of the retiree's uniformed services retirement pay includable, except for this exemption, in net income.

          B. As used in this section:

                (1) "uniformed service" means:

                     (a) active and reserve components of the army, navy, air force, space force, marine corps or coast guard of the United States;

                     (b) the United States merchant marine;

                     (c) the commissioned corps of the United States public health service;

                     (d) the commissioned corps of the national oceanic and atmospheric administration of the United States; or

                     (e) the national guard of a state; and

                (2) "[armed forces] uniformed services retiree" means a former member of the [armed forces] uniformed services of the United States who has qualified by years of service or disability to separate from [military] uniformed service with lifetime benefits."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2027.

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