UNIFORMED SVC. SALARY TAX EXEMPTION

This bill exempts from New Mexico state income tax salaries paid by the U.S. government to residents serving in uniformed services. It directly affects New Mexico residents working in the military (active/reserve army, navy, air force, etc.), Coast Guard, U.S. Public Health Service, NOAA Corps, or state National Guard. The key provision removes state tax liability on these federal salaries for tax returns filed in 2026 and later. The exemption requires taxpayers to report it to the state tax department and is included in official tax expenditure reports.