This bill amends existing taxation laws in New Mexico to exclude certain receipts from gross receipts tax deductions for manufacturers. Specifically, it states that receipts of a prime contractor derived from operating a facility designated as a national laboratory by an act of Congress or from operating a state-owned research facility in New Mexico will not be eligible for these deductions. This exclusion is added to both Section 7-9-46, which pertains to gross receipts from sales of tangible personal property and manufacturing consumables, and Section 7-9-46.1, which addresses gross receipts from sales of professional services to manufacturers.

Additionally, the bill mandates that taxpayers claiming deductions under these sections must report the amounts separately, and the department is required to compile annual reports detailing the deductions taken, the number of taxpayers claiming them, and other relevant information to assess the effectiveness of these tax provisions. The effective date for the provisions of this act is set for July 1, 2025.

Statutes affected:
introduced version: 7-9-46, 7-9-46.1