SENATE BILL 354

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO TAXATION; PROVIDING A DEDUCTION FOR A TEN-YEAR PERIOD FROM THE GROSS RECEIPTS TAX FOR SERVICES PROVIDED TO THE UNITED STATES DEPARTMENT OF DEFENSE RELATED TO DIRECTED ENERGY OR SATELLITES; REQUIRING AN ANNUAL REPORT.

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--TEN-YEAR PERIOD--GROSS RECEIPTS TAX--SERVICES AND PRODUCTS FOR THE DEPARTMENT OF DEFENSE RELATED TO DIRECTED ENERGY AND SATELLITES--REPORTING.--

          A. For transactions that are subject to the gross receipts tax during the period beginning July 1, 2013 and ending June 30, 2023:

                (1) receipts from the sale of research and development services related to directed energy or satellites when sold pursuant to a contract with the United States department of defense may be deducted from gross receipts; and

                (2) receipts from the sale of directed energy and satellite-related inputs when sold to a contractor providing research and development services related to directed energy or satellites pursuant to a contract with the United States department of defense may be deducted from gross receipts.

          B. The purpose of the deductions allowed in this section is to promote new and sophisticated technology, enhance the viability of existing directed energy and satellite projects and attract new projects to New Mexico with concomitant high-technology employment opportunities.

          C. The department shall annually report to the

revenue stabilization and tax policy committee the aggregate

amount of deductions taken pursuant to this section, the

number of taxpayers claiming each of the deductions and any

other information that is necessary to determine that the

deductions are performing the purposes for which they are

enacted.

          D. As used in this section:

                (1) "directed energy" means a system, including related services, that enables the use of the frequency spectrum, including radio waves, light and x-rays;

                (2) "directed energy and satellite-related inputs" means systems, subsystems, components, prototypes and demonstrators or products and services involving optics, photonics, electronics, advanced materials, nanoelectromechanical and microelectromechanical systems, fabrication materials, test evaluation and computer control systems related to directed energy or satellites; and

                (3) "satellite" means composite systems assembled and packaged for use in space, including launch vehicles and related products and services."

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