The bill amends Section 7-2-5.14 of the New Mexico Statutes to expand the Social Security income exemption for individuals based on their adjusted gross income. The previous language regarding the exemption amount has been deleted and replaced with a new structure that specifies different exemption percentages based on income thresholds. For individuals whose adjusted gross income does not exceed certain limits, the exemption is set at one hundred percent. Specifically, these limits are $75,000 for married individuals filing separately, $150,000 for heads of household, surviving spouses, and married individuals filing jointly, and $100,000 for single individuals.

Additionally, the bill introduces a phased approach for individuals whose income exceeds these thresholds. Starting from 2026, the exemption will gradually increase from twenty percent to one hundred percent over a ten-year period, with specific percentages outlined for taxable years up to 2036. This change aims to provide a more gradual increase in the exemption for higher-income individuals, thereby expanding the benefits of the Social Security income exemption in New Mexico.

Statutes affected:
introduced version: 7-2-5.14