Bill > SB16

This bill establishes a new tax deduction for uniformed services retirees and their surviving spouses in New Mexico, aiming to encourage them to reside and contribute their expertise to the state's workforce and business community. Starting with taxable years beginning on or after January 1, 2017, eligible individuals can deduct a progressively increasing percentage of their military retirement income, with the deduction capped at a certain amount that also increases annually, reaching 100% of their military retirement income up to $25,000 by 2020. "Uniformed services" refers to the army, navy, air force, marine corps, coast guard, and the commissioned corps of the national oceanic and atmospheric administration, while a "uniformed services retiree" is defined as a former member of these services who has retired with lifetime benefits. To claim this deduction, taxpayers must provide information to the tax department proving their eligibility and report the deduction amount as required. The tax department will also compile annual reports to evaluate the deduction's effectiveness and cost, presenting these reports to legislative committees.