SENATE BILL 566

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

John Arthur Smith

AN ACT

RELATING TO TAXATION; PROVIDING A DEDUCTION FROM GROSS RECEIPTS FOR MILITARY RESEARCH AND DEVELOPMENT ACTIVITIES.

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--GROSS RECEIPTS--TESTING AND EVALUATION FOR DEPARTMENT OF DEFENSE.--

          A. Receipts from research and development, testing and evaluation of devices and equipment under contracts entered into with organizations operated by the United States department of defense in New Mexico may be deducted from gross receipts. The deduction provided in this section does not apply to receipts of a prime contractor operating facilities designed as a national laboratory by act of congress.

          B. As used in this section, "testing and evaluation" means planning, preparing or conducting tests of materials, components, systems or assemblages of missiles."

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