1. A. Receipts from performing or selling an aerospace service for resale may be deducted from gross receipts if the sale is made to a buyer who delivers a nontaxable transaction certificate or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978. The buyer shall separately state the value of the aerospace service purchased in the buyer's charge for the aerospace service on its subsequent sale to an organization or, if the buyer is an organization, on the organization's subsequent sale to the United States, and the subsequent sale shall be in the ordinary course of business of selling aerospace services to an organization or to the United States.

2. B. As used in this section:

   1. (1) "aerospace services" means research and development services sold to or for resale to an organization for resale by the organization to the United States air force; and
   2. (2) "organization" means an organization described in Subsection A of Section 7-9-29 NMSA 1978 other than a prime contractor operating facilities in New Mexico designated as a national laboratory by act of congress.

History: Laws 1992, ch. 40, § 1; 1993, ch. 310, § 1; 1994, ch. 45, § 5; 1995, ch. 183, § 1; 2021, ch. 65, § 21.

ANNOTATIONS

Cross references. — For Spaceport Development Act, see 58-31-1 NMSA 1978 et seq.

The 2021 amendment, effective July 1, 2021, provided that a taxpayer may provide the taxation and revenue department alternative evidence to claim a gross receipts tax deduction in lieu of providing a non-taxable transaction certificate, removed a table containing gross receipts tax deduction amounts, and reorganized the section; deleted former Subsection A and redesignated former Subsection B as Subsection A; in Subsection A, after "performing or selling", deleted "on or after October 1, 1995", after "certificate", added "or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978", and after "buyer", deleted "delivering the nontaxable transaction certificate"; and deleted former Subsection C and added a new Subsection B.

The 1995 amendment, effective July 1, 1995, rewrote Subsection A, inserted "if the buyer is an organization, on the organization's subsequent sale" in Subsection B, and substituted "or for resale to an organization" for "the United States or any agency or instrumentality thereof" in Subsection C.

The 1994 amendment, effective July 1, 1994, substituted "sold to or for resale to" for "performed or sold by" in Subparagraph A(1)(a) and inserted "performing or" in the first sentence in Subsection B.

The 1993 amendment, effective July 1, 1993, rewrote this section to the extent that a detailed comparison is impracticable.