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
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