HOUSE BILL 229

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Carl Trujillo

AN ACT

RELATING TO TAXATION; CREATING A DEDUCTION FROM INCOME TAX FOR COMBAT VETERANS.

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] DEDUCTION--INCOME OF COMBAT VETERANS.--

          A. A taxpayer who is not a dependent of another individual and is a combat veteran may deduct one hundred percent of the combat veteran's income from net income.

          B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.

          C. The department shall compile an annual report on the deduction provided by this section that shall include the number of taxpayers that claimed the deduction, the aggregate amount of deductions claimed and any other information necessary to evaluate the effectiveness of the deduction. Beginning in 2017, the department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost and benefit to the state of the deduction.

          D. For purposes of this section, "combat veteran" means a veteran who has served on active duty in a theater of combat operations under orders of the president of the United States and has been discharged under other than dishonorable conditions."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2015.

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