Bill > SB117

This bill expands an existing income tax exemption for salaries earned by members of the United States uniformed services, which includes active and reserve components of the army, navy, air force, space force, marine corps, and coast guard, as well as the U.S. merchant marine, the commissioned corps of the U.S. public health service, the commissioned corps of the national oceanic and atmospheric administration, and a state's national guard. Previously, the exemption was limited to "armed forces" and "active duty," but this bill broadens it to encompass all service in the "uniformed services" and requires taxpayers claiming this exemption to report the amount to the department, with the exemption's cost to be included in the tax expenditure budget. These changes will take effect for taxable years beginning on or after January 1, 2026.

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=117&year=26