1. A. Receipts from transformational acquisition programs performing research and development, test and evaluation at New Mexico major range and test facility bases pursuant to contracts entered into with the United States department of defense may be deducted from gross receipts through June 30, 2025.
2. B. As used in this section, "transformational acquisition program" means a military acquisition program authorized by the office of the secretary of defense force transformation and not physically tested in New Mexico on or before July 1, 2005.
3. C. The deduction provided in this section does not apply to receipts of a prime contractor operating facilities designated as a national laboratory by act of congress and is not applicable to current force programs as of July 1, 2005.
4. D. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department. The deduction shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the deduction.

History: Laws 2005, ch. 104, § 23; 2006, ch. 72, § 1; 2015, ch. 18, § 1; 2025, ch. 130, § 82.

ANNOTATIONS

The 2025 amendment, effective July 1, 2025, revised reporting requirements; in Subsection D, after the subsection designation, deleted "The department shall compile an annual report on the deduction provided by this section that shall include the number of taxpayers that claimed the deduction, the aggregate amount of deductions claimed and any other information necessary to evaluate the effectiveness of the deduction. No later than December 1 of each year that the deduction is in effect, the department shall compile and present the annual report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost and benefit to the state" and added "A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department. The deduction shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost".

The 2015 amendment, effective June 19, 2015, amended the Gross Receipts and Compensating Tax Act by deferring the expiration date of the deduction from gross receipts for certain military acquisition programs and required the taxation and revenue department to compile an annual report on the deduction provided by this section; in Subsection A, deleted "2016" and added "2025"; and added Subsection D.

The 2006 amendment, effective May 17, 2006, changed the expiration date from June 30, 2008 to June 30, 2016.