NM SB117

Exempts all salaries paid by the United States for service in the uniformed services from New Mexico state income tax, expanding the current exemption beyond just active duty armed forces personnel

Defines "uniformed services" to include active and reserve components of the Army, Navy, Air Force, Space Force, Marine Corps, and Coast Guard; the U.S. Merchant Marine; commissioned corps of the U.S. Public Health Service; commissioned corps of NOAA; and state National Guard

Requires taxpayers claiming the exemption to report the exemption amount to the department in a manner specified by the department

Mandates the exemption be included in the state's tax expenditure budget with annual aggregate cost reporting

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