New Mexico Armed forces retirement pay exemption 2022-2026

changelog_entry.yaml

@@ -0,0 +1,4 @@
+- bump: minor
+  changes:
+    added:
+    - New Mexcio armed forces retirement pay exemption.

policyengine_us/parameters/gov/states/nm/tax/income/exemptions/armed_forces_retirement_pay/cap.yaml

@@ -0,0 +1,18 @@
+description: New Mexico caps the armed forces retirement pay exemptions at this amount.  
+values:
+  2022-01-01: 10_000
+  2023-01-01: 20_000
+  2024-01-01: 30_000
+  # expires after 2026
+metadata:
+  unit: currency-USD
+  period: year
+  label: New Mexico armed forces retirement pay exemption cap
+  reference:
+    - title: N.M. Stat. § 7-2-5.13 Exemption; armed forces retirement pay (A)
+      href: https://casetext.com/statute/new-mexico-statutes-1978/chapter-7-taxation/article-2-income-tax-general-provisions/section-7-2-513-effective-until-112025-exemption-armed-forces-retirement-pay
+    - title: INSTRUCTIONS booklet for personal income tax forms 2022 
+      href: https://taxsim.nber.org/historical_state_tax_forms/NM/2022/PITbook2022.pdf#page=52
+    - title: INSTRUCTIONS FOR 2023 PIT-ADJ
+      href: https://klvg4oyd4j.execute-api.us-west-2.amazonaws.com/prod/PublicFiles/34821a9573ca43e7b06dfad20f5183fd/cb0dc85c-5c28-45b1-a3f5-1e00fffaaf6b/2023pit-adj-ins.pdf#page=7
+

policyengine_us/parameters/gov/states/nm/tax/income/exemptions/exemptions.yaml

@@ -0,0 +1,38 @@
+description: New Mexico applies exemptions to federal adjusted gross income.
+values:
+  2021-01-01:
+    - nm_aged_blind_exemption
+    - nm_hundred_year_exemption
+    - nm_low_and_middle_income_exemption
+    - nm_medical_expense_exemption
+    - nm_social_security_income_exemption
+
+  2022-01-01:
+    - nm_aged_blind_exemption
+    - nm_hundred_year_exemption
+    - nm_low_and_middle_income_exemption
+    - nm_medical_expense_exemption
+    - nm_social_security_income_exemption
+    - nm_armed_forces_retirement_pay_exemption
+
+  2027-01-01: 
+    - nm_aged_blind_exemption
+    - nm_hundred_year_exemption
+    - nm_low_and_middle_income_exemption
+    - nm_medical_expense_exemption
+    - nm_social_security_income_exemption
+
+
+metadata:
+  unit: list
+  period: year
+  label: New Mexico exemptions
+  reference:
+    - title: 2022 PIT-ADJ SCHEDULE OF ADDITIONS, DEDUCTIONS, AND EXEMPTIONS 
+      href: https://www.taxformfinder.org/forms/2022/2022-new-mexico-form-pit-adj.pdf
+    - title: 2023 PIT-ADJ SCHEDULE OF ADDITIONS, DEDUCTIONS, AND EXEMPTIONS 
+      href: https://klvg4oyd4j.execute-api.us-west-2.amazonaws.com/prod/PublicFiles/34821a9573ca43e7b06dfad20f5183fd/247e3a1f-2a1f-4002-a689-e1c3994dde9d/2023pit-adj.pdf
+    - title: INSTRUCTIONS booklet for personal income tax forms 2022 
+      href: https://taxsim.nber.org/historical_state_tax_forms/NM/2022/PITbook2022.pdf#page=46
+    - title: INSTRUCTIONS FOR 2023 PIT-ADJ
+      href: https://klvg4oyd4j.execute-api.us-west-2.amazonaws.com/prod/PublicFiles/34821a9573ca43e7b06dfad20f5183fd/cb0dc85c-5c28-45b1-a3f5-1e00fffaaf6b/2023pit-adj-ins.pdf#page=3

policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/exemptions/nm_armed_forces_retirement_pay_exemption.yaml

@@ -0,0 +1,23 @@
+- name: Case 1, 2022, armed forces retirement pay higher than exemption amount.
+  period: 2022
+  input:
+    veterans_benefits: 11_000
+    state_code: NM
+  output:
+    nm_armed_forces_retirement_pay_exemption: 10_000
+
+- name: Case 2, 2022, armed forces retirement pay less than exemption amount.
+  period: 2022
+  input:
+    veterans_benefits: 5_000
+    state_code: NM
+  output:
+    nm_armed_forces_retirement_pay_exemption: 5_000
+
+- name: Case 2, 2023, armed forces retirement pay less than exemption amount.
+  period: 2023
+  input:
+    veterans_benefits: 15_000
+    state_code: NM
+  output:
+    nm_armed_forces_retirement_pay_exemption: 15_000

policyengine_us/variables/gov/states/nm/tax/income/exemptions/nm_armed_forces_retirement_pay_exemption.py

@@ -0,0 +1,20 @@
+from policyengine_us.model_api import *
+
+
+class nm_armed_forces_retirement_pay_exemption(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "New Mexico armed forces retirement pay exemption"
+    unit = USD
+    definition_period = YEAR
+    reference = "https://casetext.com/statute/new-mexico-statutes-1978/chapter-7-taxation/article-2-income-tax-general-provisions/section-7-2-513-effective-until-112025-exemption-armed-forces-retirement-pay"
+    defined_for = StateCode.NM
+
+    def formula(tax_unit, period, parameters):
+        p = parameters(
+            period
+        ).gov.states.nm.tax.income.exemptions.armed_forces_retirement_pay
+        armed_forces_retirement_pay = add(
+            tax_unit, period, ["veterans_benefits"]
+        )
+        return min_(armed_forces_retirement_pay, p.cap)

policyengine_us/variables/gov/states/nm/tax/income/exemptions/nm_exemptions.py

@@ -9,10 +9,4 @@ class nm_exemptions(Variable):
     definition_period = YEAR
     defined_for = StateCode.NM
 
-    adds = [
-        "nm_aged_blind_exemption",
-        "nm_hundred_year_exemption",
-        "nm_low_and_middle_income_exemption",
-        "nm_medical_expense_exemption",
-        "nm_social_security_income_exemption",
-    ]
+    adds = "gov.states.nm.tax.income.exemptions.exemptions"