This bill amends the Income Tax Act in New Mexico to increase the standard deduction for income tax purposes to two hundred five percent of the standard deduction allowed by the federal government. Specifically, it modifies the definition of "net income" to include this new standard deduction amount, which will be applicable to taxpayers for taxable years beginning on or after January 1, 2026. The bill also retains existing definitions and provisions related to income tax calculations, including adjusted gross income, base income, and various deductions. The changes aim to provide taxpayers with a higher standard deduction, potentially reducing their taxable income and overall tax liability.