HOUSE BILL 13

46th legislature - STATE OF NEW MEXICO - first special session, 2003

INTRODUCED BY

Terry T. Marquardt

AN ACT

RELATING TO PUBLIC FINANCING; ALLOWING FOR THE FINANCING OF ECONOMIC DEVELOPMENT INITIATIVES BY CREATING A COMPENSATING TAX DEDUCTION FOR SYSTEMS TESTED OR EVALUATED IN NEW MEXICO FOR THE UNITED STATES DEPARTMENT OF DEFENSE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

     "[NEW MATERIAL] DEDUCTION--COMPENSATING TAX--DEFENSE SYSTEMS FOR TESTING.--The value of equipment, replacement parts or other components of defense systems or the value of entire defense systems that are manufactured, fabricated or assembled outside of New Mexico and brought into the state to be tested or evaluated for programs of the United States department of defense at a major range and test facility base may be deducted by a taxpayer in computing the compensating tax due."

      Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2004.

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