NM HB55

Creates a 50% state income tax deduction for retirement pay earned by first responders, available to retirees or their unmarried surviving spouses

Defines "first responder" as law enforcement officers, firefighters, or emergency medical services personnel whose duties include responding rapidly to emergencies

Requires taxpayers to submit eligibility documentation to the department and report the deduction amount as directed

Mandates inclusion of the deduction in the state's tax expenditure budget under Section 7-1-84 NMSA 1978, with annual aggregate cost tracking

Applies to taxable years beginning on or after January 1, 2026