SENATE BILL 618

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

INTRODUCED BY

William E. Sharer

AN ACT

RELATING TO TAXATION; ENACTING A NEW SECTION OF CHAPTER 7 NMSA 1978 TO PROVIDE A TAX CREDIT FOR INVESTMENTS IN HIGH-SPEED BROADBAND INTERNET AND WIRELESS INTERNET IN COUNTIES OTHER THAN CLASS A COUNTIES.

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

     Section 1. A new section of Chapter 7 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] RURAL HIGH-SPEED BROADBAND INTERNET AND WIRELESS INTERNET TAX CREDIT.--

          A. A taxpayer that holds an interest in a qualified rural high-speed broadband internet or wireless internet service in a county other than a class A county may claim a credit to be computed pursuant to the provisions of this section. The credit provided by this section may be referred to as the "rural high-speed broadband internet and wireless internet service tax credit".

          B. As used in this section:

                (1) "department" means the taxation and revenue department;

                (2) "eligible high-speed broadband internet or wireless internet service costs" means expenditures for the development and construction of a qualified high-speed broadband internet or wireless internet service in a county other than a class A county, including permitting; site characterization and assessment; engineering; design; and site and equipment acquisition; and

                (3) "qualified rural high-speed broadband internet or wireless internet service" means a new high-speed broadband internet or wireless internet service facility that begins construction after December 31, 2009 and is certified by the department of information technology.

          C. A taxpayer may apply for the rural high-speed broadband internet and wireless internet service tax credit by submitting to the taxation and revenue department a certificate issued by the department of information technology pursuant to this section, documentation showing the taxpayer's interest in the qualified rural high-speed broadband internet or wireless internet service identified in the certificate and other information the taxation and revenue department requests to determine the amount of tax credit due to the taxpayer.

          D. A taxpayer having applied for and been granted approval for a credit by the department pursuant to this section may claim an amount of available credit against the taxpayer's gross receipts tax, compensating tax or withholding tax due to the state.

          E. If the amount of the tax credit claimed exceeds the taxpayer's liability, the excess may be carried forward for up to five years.

          F. A taxpayer that holds an interest in a qualified rural high-speed broadband internet or wireless internet service may request a certificate of eligibility from the department of information technology to enable the taxpayer to apply for the rural high-speed broadband internet and wireless internet service tax credit. The department of information technology shall: 

                (1) determine if the facility is a qualified rural high-speed broadband internet or wireless internet service;

                (2) require that the requester provide the department of information technology with the information necessary to assess whether the requester's facility meets the criteria to be a qualified rural high-speed broadband internet or wireless internet service;

                (3) issue a certificate to the requester stating that the facility is or is not a qualified rural high-speed broadband internet or wireless internet service within one hundred eighty days after receiving all information necessary to make a determination; and

                (4) issue rules governing the procedure for administering the provisions of this section.

          G. Expenditures for which a taxpayer claims a credit pursuant to this section are ineligible for credits pursuant to the provisions of the Investment Credit Act or any other credit against compensating tax, gross receipts tax or withholding tax.

          H. A taxpayer shall apply for approval for a credit within one year following the end of the calendar year in which the eligible high-speed broadband internet or wireless internet service costs are incurred."

     Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2010.

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