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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
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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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