1. As used in the Small Business Recovery and Stimulus Act:
2. A. "authority" means the New Mexico finance authority;
3. B. "New Mexico resident" means an individual who is domiciled in this state during any part of the year or an individual who is physically present in this state for one hundred eighty-five days or more during the taxable year;
4. C. "non-employer business" means a qualifying small business that has no paid employees;
5. D. "ordinary and necessary business expenses" means all expenses, including expenses and capital expenses incurred to operate the business in compliance with a public health order;

6. E. "qualifying small business" means a business or nonprofit corporation that:

   1. (1) can demonstrate, as determined by the authority, that it has sustained a substantial decline in gross revenue or a substantial disruption to its operations due to the public health orders issued by the secretary of health and related to the coronavirus disease 2019 public health emergency;
   2. (2) had an annual net revenue of less than five million dollars ($5,000,000) as determined by the authority; and

   3. (3) is organized and operated as a nonprofit corporation or is owned as follows:

      1. (a) for a sole proprietorship, one hundred percent of the assets of the business are owned or leased by a New Mexico resident; and
      2. (b) for a corporation, partnership, joint venture, limited liability company, limited partnership or other business entity, at least fifty-one percent of the total voting power of the entity and at least fifty-one percent of the total value of the equity is owned by one or more New Mexico residents or the business entity maintains a physical business location within the state and has employed at least ten full-time New Mexico resident employees at any time since January 1, 2019; and
7. F. "nonprofit corporation" means an organization that has been granted exemption from the federal income tax by the United States commissioner of internal revenue as an organization described in Section 501(c)(3), 501(c)(6), 501(c)(8), 501(c)(19) or 501(c)(23) of the United States Internal Revenue Code of 1986 and subject to the provisions of the Nonprofit Corporation Act [Chapter 53, Article 8 NMSA 1978].

History: Laws 2020 (1st S.S.), ch. 6, § 2; 2021, ch. 5, § 2.

ANNOTATIONS

Cross references. — For federal Coronavirus Aid, Relief, and Economic Security Act, see Pub.L. 116–136.

For Section 179 of the Internal Revenue Code of 1986, see 26 U.S.C. § 179.

For Section 501 of the Internal Revenue Code, see 26 U.S.C. § 501.

The 2021 amendment, effective March 3, 2021, defined "non-employer business", revised the definitions for "qualifying small business" and "nonprofit corporation", and deleted definitions for "average adjusted monthly business expenses", "community development financial institution", "loan servicer" and "service provider" as used in the Small Business Recovery and Stimulus Act; in the first sentence, after "Recovery", added "and Stimulus", and after "Act", deleted "of 2020"; deleted Subsections B through D, which defined "average adjusted monthly business expenses", "community development financial institution" and "loan servicer", and redesignated former Subsection E as Subsection B; added a new Subsection C and redesignated former Subsections F and G as Subsections D and E, respectively; in Subsection E, Paragraph E(1), deleted "has closed or reduced operations" and added "can demonstrate, as determined by the authority, that it has sustained a substantial decline in gross revenue or a substantial disruption to its operations", after the second occurrence of "health", deleted "on March 23, 2020" and added "and related to the coronavirus disease 2019 public health emergency", in Paragraph E(2), after "annual", deleted "gross" and added "net", and after "determined", deleted "from the business's federal income tax return for taxable year 2019" and added "by the authority", deleted former Paragraph E(3) and redesignated former Paragraph E(4) as Paragraph E(3), in Subparagraph E(3)(b), after each occurrence of "at least", deleted "eighty" and added "fifty-one", and after "New Mexico residents", added "or the business entity maintains a physical business location within the state and has employed at least ten full-time New Mexico resident employees at any time since January 1, 2019"; deleted former Subsection H, which defined "service provider", and redesignated former Subsection I as Subsection F; and in Subsection F, after "means an", deleted "entity organized pursuant to Section 501(c)(3) or 501(c)(6) of the Internal Revenue Service Code" and added the remainder of the subsection".