NM SB116

Removes the $30,000 cap on the state income tax exemption for uniformed services retirement pay, allowing retirees to exempt their full retirement pay from New Mexico income tax

Expands eligibility from "armed forces" retirees to "uniformed services" retirees, which includes Army, Navy, Air Force, Space Force, Marine Corps, Coast Guard, U.S. Merchant Marine, U.S. Public Health Service commissioned corps, NOAA commissioned corps, and state National Guard

Extends the exemption to surviving spouses of uniformed services retirees

Applies to taxable years beginning on or after January 1, 2027