HOUSE BILL 415

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Janice E. Arnold-Jones

AN ACT

RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX CREDIT FOR SMALL NEW MEXICO BUSINESSES THAT REMAIN IN BUSINESS FOR MORE THAN FIVE YEARS.

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

     Section 1. SMALL BUSINESS TAX CREDIT--GROSS RECEIPTS.--

          A. A taxpayer who is the owner of a small business that has been in business in New Mexico for five years or more may apply for, and the taxation and revenue department may allow, a tax credit pursuant to this section. The credit provided in this section may be referred to as the "small business tax credit".

          B. The small business tax credit may be claimed and allowed in an amount equal to:

                (1) for a business that has been operating in New Mexico and paying gross receipts taxes for at least five years, one-fourth of one percent of the gross receipts taxes due to the state from the taxpayer in the taxable period;

                (2) for a business that has been operating in New Mexico and paying gross receipts taxes for at least ten years, one-half of one percent of the gross receipts taxes due to the state from the taxpayer in the taxable period;

                (3) for a business that has been operating in New Mexico and paying gross receipts taxes for at least fifteen years, three-fourths of one percent of the gross receipts taxes due to the state from the taxpayer in the taxable period; and

                (4) for a business that has been operating in New Mexico and paying gross receipts taxes for at least twenty years, one percent of the gross receipts taxes due to the state from the taxpayer in the taxable period.

          C. To receive a small business tax credit with respect to any qualifying period, an eligible employer shall apply to the taxation and revenue department on forms and in the manner prescribed by the department.

          D. The application shall include a certification of the:

                (1) number of years that the business has operated in New Mexico and has paid gross receipts taxes; and

                (2) the maximum number of employees employed by the business in the calendar year preceding the reporting period and the number of employees employed during the reporting period.

          E. The credit provided in this section may be deducted from the gross receipts tax liability of a taxpayer.

          F. As used in this section, "small business" means a for-profit enterprise that employs fewer than fifty employees at any time during the calendar year and that has continuously been located, operating and paying gross receipts tax in New Mexico for the number of years reported by the taxpayer.

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