State of New Mexico
House of Representatives
FORTY-THIRD LEGISLATURE
FIRST SESSION, 1997
February 26, 1997
Mr. Speaker:
Your TAXATION AND REVENUE COMMITTEE, to whom has
been referred
HOUSE BILL 49
has had it under consideration and reports same with
recommendation that it DO PASS, amended as follows:
1. On page 1, line 11, after "EXTENDING" insert "AND
CHANGING".
2. On page 1, between lines 14 and 15, insert the following
sections:
"Section 1. Section 7-9A-8 NMSA 1978 (being Laws 1979,
Chapter 347, Section 8, as amended) is amended to read:
"7-9A-8. CLAIMING THE CREDIT FOR CERTAIN TAXES.--
A. A taxpayer shall apply for approval for a credit
within one year following the end of the calendar year in which the
qualified equipment for the manufacturing operation is purchased or
introduced into New Mexico.
B. A taxpayer having applied for and been granted
approval for a credit by the department pursuant to the Investment
Credit Act may claim an amount of available credit against the
taxpayer's compensating tax, gross receipts tax or withholding tax
due to the state of New Mexico, [B. A taxpayer having applied for
and been granted approval for an investment credit pursuant to the
Investment Credit Act may claim a refund of an amount of available
credit upon evidence satisfactory to the secretary of taxation and
revenue that an element of the price denominated a gross receipts
tax has been paid on the purchase of tangible personal property for
the manufacturing operation or on the purchase of construction
services used in connection with qualified equipment or that
compensating tax has been paid and not refunded on the value of the
qualified equipment for which the credit was approved] provided that
no taxpayer may claim an amount of available credit for any
reporting period that exceeds eighty-five percent of the sum of the
taxpayer's gross receipts tax, compensating tax and withholding tax
due for that reporting period. Any amount of available credit not
claimed against the taxpayer's gross receipts tax, compensating tax
or withholding tax due for a reporting period may be claimed in
subsequent reporting periods."
Section 2. A new section of the Investment Credit Act is
enacted to read:
"[NEW MATERIAL] TRANSITION PROVISIONS.--
A. The provisions of this section apply on the date that
changes to the provisions in the Investment Credit Act become
effective limiting the amount of qualified equipment that may be
claimed and increasing the employment requirements with respect to
qualified equipment.
B. The amount of any available credit unclaimed on the
effective date of the changes described in Subsection A of this
section may be claimed, until exhausted, in accordance with the
provisions of Section 7-9A-8 NMSA 1978 immediately prior to the
effective date of the changes described in Subsection A of this
section.
C. After the effective date described in Subsection A of
this section, the department shall approve claims submitted prior to
that effective date but not approved by that effective date if the
claim meets the requirements of the Investment Credit Act in effect
immediately prior to that effective date. The claimant may claim
the amount of any available credit so approved in accordance with
the provisions of Section 7-9A-8 NMSA 1978 immediately prior to the
effective date of the event described in Subsection A of this
section.
D. After the effective date of the changes described in
Subsection A of this section, a claimant may submit and the
department shall approve claims submitted on or after that effective
date if the claim is with respect to qualified equipment located in
the state prior to that effective date that otherwise meets the
requirements of the Investment Credit Act in effect immediately
prior to that effective date. The claimant may claim the amount of
any available credit so approved in accordance with the provisions
of Section 7-9A-8 NMSA 1978 immediately prior to the effective date
of the changes described in Subsection A of this section.
E. After the effective date of the changes described in
Subsection A of this section, the department may approve claims
submitted on or after that effective date with respect to equipment
not located in the state until after that effective date only in
accordance with the provisions of the Investment Credit Act in
effect after that effective date."".
3. Renumber the succeeding section accordingly.,
and thence referred to the APPROPRIATIONS AND FINANCE
COMMITTEE.
Respectfully submitted,
Jerry W. Sandel, Chairman
Adopted Not Adopted
(Chief Clerk) (Chief Clerk)
Date
The roll call vote was 8 For 0 Against
Yes: 8
Excused: Gubbels, Lovejoy, Porter, Sandoval, Stell
Absent: None
.117720.1
G:\BILLTEXT\AMEND_97\H0049TR1