This bill introduces a new section to the Gross Receipts and Compensating Tax Act that allows for a gross receipts tax deduction for dyed diesel fuel sold prior to July 1, 2031. Taxpayers who qualify for this deduction must report the amount separately as required by the department. Additionally, the bill mandates that the deduction be included in the tax expenditure budget, which outlines the annual aggregate cost of the deduction.

Furthermore, the bill repeals an existing gross receipts tax credit for dyed diesel used for agricultural purposes, specifically Section 7-9-58.1 NMSA 1978. The provisions of this act are set to take effect on July 1, 2026.

Statutes affected:
introduced version: 7-9-58.1