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 and Section 7-9-46.1 of the New Mexico Statutes, which pertain to deductions for gross receipts related to sales of tangible personal property and professional services to manufacturers.

Additionally, the bill mandates that taxpayers claiming deductions under these sections must report the amounts separately, facilitating legislative evaluation of the deductions' effectiveness. The Department of Taxation and Revenue is also required to compile annual reports detailing the aggregate amount of deductions taken and the number of taxpayers claiming them, ensuring transparency and accountability in the application of these tax provisions. The effective date for these changes is set for July 1, 2025.

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