0001|                           SENATE BILL 291
    |
0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
    |
0003|                            INTRODUCED BY
    |
0004|                           PATRICK H. LYONS
    |
0005|     
    |
0006|                                   
    |
0007|     
    |
0008|                                   
    |
0009|     
    |
0010|                                AN ACT
    |
0011|     RELATING TO TAXATION; PROVIDING A DEDUCTION FROM GROSS
    |
0012|     RECEIPTS FOR SALE OF ADVANCED PRODUCT DEVELOPMENT SERVICES.
    |
0013|     
    |
0014|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0015|          Section 1.  A new section of the Gross Receipts and
    |
0016|     Compensating Tax Act is enacted to read:
    |
0017|          "[<u>NEW MATERIAL</u>] DEDUCTION--GROSS RECEIPTS TAX--SALE OF
    |
0018|     ADVANCED PRODUCT DEVELOPMENT SERVICES.--
    |
0019|               A.  Receipts from selling advanced product
    |
0020|     development services may be deducted from gross receipts.
    |
0021|               B.  As used in this section, "advanced product
    |
0022|     development services" means services necessary to develop a
    |
0023|     new product that is intended to be manufactured but has not
    |
0024|     yet been offered for sale, lease or other transfer, and
    |
0025|     includes the design and development of prototypes."
    |
<center>- 1 -</center>

0001|          Section 2.  EFFECTIVE DATE.--The effective date of the
    |
0002|     provisions of this act is July 1, 1998.
    |
0003|                              
    |