HB 55

                                1  HOUSE BILL 55
                                2     57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
                                3  INTRODUCED BY
                                4  Alan T. Martinez and John Block and Harlan Vincent
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                                10  AN ACT
                                11   RELATING TO TAXATION; PROVIDING AN INCOME TAX DEDUCTION FOR
                                12   FIRST RESPONDER RETIREMENT INCOME.
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                                14   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
                                15        SECTION 1.    A new section of the Income Tax Act is enacted
                                16   to read:
[bracketed material] = delete
                                17        "[NEW MATERIAL] DEDUCTION--FIRST RESPONDER RETIREMENT
underscored material = new
                                18   INCOME.--
                                19  A.   A taxpayer who is a first responder retiree or
                                20   the unmarried surviving spouse of a first responder retiree may
                                21   claim a deduction in an amount equal to fifty percent of the
                                22   taxpayer's retirement pay earned for service as a first
                                23   responder includable in net income.
                                24  B.   To claim a deduction pursuant to this section, a
                                25   taxpayer shall submit to the department information required by
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                                1    the secretary establishing that the taxpayer is eligible to
                                2    claim the deduction.
                                3  C.   A taxpayer allowed the deduction pursuant to
                                4    this section shall report the amount of the deduction to the
                                5    department in a manner required by the department.
                                6  D.   The deduction provided by this section shall be
                                7    included in the tax expenditure budget pursuant to Section
                                8    7-1-84 NMSA 1978, including the annual aggregate cost of the
                                9    deduction.
                                10  E.   As used in this section, "first responder" means
                                11   a law enforcement officer, a firefighter or emergency medical
                                12   services personnel whose duties include responding rapidly to
                                13   an emergency."
                                14        SECTION 2.     APPLICABILITY.--The provisions of this act
                                15   apply to taxable years beginning on or after January 1, 2026.
                                16  - 2 -
[bracketed material] = delete
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underscored material = new
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                                     .232771.1