The 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 to manufacturers, and Section 7-9-46.1, which addresses gross receipts from sales of services to manufacturers.

Additionally, the bill mandates that the Department of Taxation and Revenue must compile annual reports detailing the deductions taken under these sections, including the number of taxpayers claiming them and other relevant information to assess their effectiveness. 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