SENATE BILL 497

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Gabriel Ramos and Joshua A. Sanchez and 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 ARMED FORCES 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 RETIREMENT PAY.--

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

          B. As used in this section, "armed forces retiree" means a former member of the armed forces of the United States who has qualified by years of service or disability to separate from military service with lifetime benefits."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2026.

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