Budget & Taxes (Income Tax)

in committee · New Mexico · Senate Mar 24, 2026

SB 116: UNIFORMED SVC. RETIREMENT PAY TAX EXEMPTION

SB 116 removes the $30,000 annual limit on the income tax exemption for uniformed services retirement pay in New Mexico. It directly affects New Mexico residents who are uniformed services retirees (including military, Coast Guard, Public Health Service, NOAA Corps, or National Guard members) or their surviving spouses. The bill changes the law so that all retirement pay from these services qualifies for the tax exemption, rather than only the first $30,000. This exemption applies to taxable years beginning January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves $30k cap on tax exemption for uniformed retirees, providing broader tax relief for military/veteran retirees under taxation policy.95% confidence ✓ VeteransSupports VeteransRemoves $30k cap on tax exemption for veterans' retirement pay, expanding financial benefit for military retirees and surviving spouses in NM.95% confidence

Sub-Topics Income Tax Tax Incentives National Guard & Reserve

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in committee · New Mexico · House Mar 24, 2026

HB 232: GUN STORAGE TAX CREDIT

HB 232 creates a one-time $1,000 tax credit for New Mexico taxpayers who purchase certified secure gun storage (such as safes, lock boxes, or gun cases) starting in 2026. To qualify, buyers must obtain certification from the Public Safety Department confirming the storage meets safety standards, and the total annual credits are capped at $500,000. Taxpayers can claim the credit within one year of purchase to reduce their state income tax bill, with unused portions refunded. The credit applies only to individual taxpayers purchasing new storage devices for personal firearm storage, not to businesses or dependents.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credit reducing state tax liability for gun storage, providing tax relief per taxation subject; aligns with support indicators.95% confidence

Sub-Topics Income Tax Procurement Tax Credits

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signed · New Mexico · Senate Mar 11, 2026

SB 151: CORPORATE INCOME TAX CHANGES

SB 151 adjusts New Mexico's corporate tax calculation to better align with federal rules for certain income types. It modifies the state's definition of "base income" by adding back specific federal deductions (like interest from state bonds) and subtracting amounts for bonus depreciation and interest expenses that the federal government allows. This bill directly affects corporations operating in New Mexico that file federal tax returns, particularly those with income from controlled foreign corporations. The key change ensures New Mexico's tax calculation accounts for federal adjustments related to foreign income and depreciation, while applying standard apportionment rules to attributed income.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies corporate tax base to disallow federal deductions (e.g., bond interest), increasing state tax revenue and aligning with fiscal responsibility.95% confidence

Sub-Topics Business Taxes Income Tax

in committee · New Mexico · House Mar 24, 2026

HB 221: ARMED FORCES RETIREMENT PAY TAX EXEMPTION

HB 221 removes the $30,000 annual cap on tax exemptions for military retirement pay in New Mexico, making all such income tax-exempt for eligible individuals. It directly affects New Mexico military retirees and their surviving spouses who qualify for lifetime retirement benefits under federal law. The bill amends state tax code to eliminate the previous limitation, meaning retirees no longer face a taxable threshold on their military pay. This change applies to taxable years beginning January 1, 2026, and does not create new benefits but modifies existing tax treatment.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves $30k tax cap on military retirement pay, providing tax relief to eligible retirees under tax policy changes.95% confidence ✓ VeteransSupports VeteransRemoves $30k tax cap on military retirement pay, expanding tax exemptions for veterans' benefits per bill summary.95% confidence

Sub-Topics Income Tax Tax Incentives

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in committee · New Mexico · Senate Mar 24, 2026

SB 156: SOCIAL SECURITY INCOME TAX CAP

SB 156 removes income limits for New Mexico taxpayers claiming an exemption on Social Security benefits. Currently, the exemption is capped at $75,000 (married filing separately), $150,000 (joint filers), or $100,000 (single filers). The bill eliminates these caps, allowing all Social Security income to be exempt from state income tax regardless of total earnings. This change applies to taxable years beginning January 1, 2026, and directly affects New Mexico residents receiving Social Security benefits who exceed the previous income thresholds.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves income caps on Social Security tax exemption, providing tax relief to low/middle-income retirees, aligning with support indicators for tax relief.95% confidence

Sub-Topics Income Tax

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in committee · New Mexico · Senate Mar 24, 2026

SB 170: CHILD CARE FACILITY DONATION TAX CREDIT

SB 170 creates a tax credit for New Mexico taxpayers who donate money to licensed child care facilities serving children under 12. Individuals and businesses can claim a credit equal to their donation (up to $500,000 annually), reducing their state income tax bill or receiving a refund if the credit exceeds taxes owed. To qualify, donations must be monetary, go to facilities meeting state enrollment standards for child care subsidies, and be certified by the Early Childhood Education and Care Department. The total annual credit value across all taxpayers is capped at $10 million, with applications processed in order of receipt. This policy directly affects donors and licensed child care facilities, aiming to support child care access through tax incentives.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing state income tax for donations to child care facilities, providing tax relief while funding essential child care services.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Mexico · House Mar 24, 2026

HB 265: TAXPAYER DIVIDEND INCOME TAX REBATE FUND

HB 265 creates a new "Taxpayer Dividend Income Tax Rebate Fund" to distribute excess state revenues as direct tax rebates to New Mexico residents. The fund receives money from two sources: (1) excess oil and gas tax revenues (previously allocated to early childhood education), and (2) excess federal mineral leasing funds. Eligible residents who file a New Mexico income tax return by May 31 receive a rebate equal to the fund's prior year balance divided by the total number of filers. The rebate reduces tax liability or is refunded if it exceeds the amount owed.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides direct tax rebates to residents using excess revenues, aligning with tax relief indicators for support.92% confidence

Sub-Topics Income Tax

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died · New Mexico · House Mar 24, 2026

HB 264: VARIOUS INCOME TAX DEDUCTIONS

HB 264 creates new tax deductions for New Mexico taxpayers earning tips (based on federal Section 224), overtime pay (federal Section 225), and Social Security income (federal Section 151). It replaces the Working Families Tax Credit with a state Earned Income Tax Credit (EITC) modeled after federal rules, adds a new Foster Parent and Guardian Income Tax Credit, and expands the medical expense deduction to apply to taxpayers of all income levels. The bill also extends tax deductions for healthcare practitioners to include patient coinsurance payments. These provisions directly affect low-to-moderate income earners, tip-based workers, retirees, and foster care providers by modifying how their income is taxed under New Mexico law.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deductions for tips, overtime, Social Security, and expands medical deductions to all income levels, providing relief for lower/middle income taxpayers through EITC and foster parent credits.95% confidence ✓ HealthcareSupports HealthcareExpands medical expense deduction to all income levels, reducing out-of-pocket healthcare costs for taxpayers.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill replaces Working Families Tax Credit with state EITC, expanding tax benefits for low-income workers. Directly supports labor income stability through targeted tax credits.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Labor Standards

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in committee · New Mexico · House Mar 24, 2026

HB 93: STANDARD INCOME TAX DEDUCTION INCREASE

HB 93 increases New Mexico's standard income tax deduction to 205% of the federal standard deduction amount. This change directly affects individual taxpayers who file state income taxes and claim the standard deduction instead of itemizing deductions. The bill amends the state's tax code to adjust "net income" calculations by expanding the deduction, lowering taxable income for qualifying filers. This policy change would reduce the state income tax liability for eligible taxpayers without requiring them to itemize expenses. The bill is currently pending referral to relevant legislative committees.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases standard deduction, reducing tax liability for filers, providing direct tax relief per bill summary and taxation focus.95% confidence

Sub-Topics Income Tax

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in committee · New Mexico · House Mar 24, 2026

HB 193: SCHOLARSHIPS FOR PRIVATE ED & TAX CREDITS

HB 193 creates a scholarship program allowing school tuition organizations to award financial aid to low-income students attending private schools in New Mexico, while establishing tax credits for donors. It directly affects low-income families (defined by federal lunch program income standards) who choose private schools, provided students previously attended a public or home school in New Mexico. Key mechanisms include requiring organizations to allocate 90% of funds to scholarships, prohibiting single-school restrictions, mandating annual financial reports, and requiring audits for organizations receiving $500,000+ in donations. The bill also creates individual and corporate income tax credits for contributions to these scholarship organizations, with strict transparency rules for public reporting.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax credits for donors, reducing government revenue. Aligns with tax breaks for wealthy donors per 'oppose' indicators, despite benefiting low-income students.90% confidence ✓ EducationSupports EducationCreates scholarship program for low-income students to attend private schools, expanding educational access through direct financial aid for private education options.90% confidence

Sub-Topics Business Taxes Income Tax Higher Education School Choice Student Financial Aid

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