reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-5 - Corporate income tax rates.

The corporate income tax imposed on corporations by Section 7-2A-3 NMSA 1978 shall be:
If the taxable income is:
The tax shall be:
Not over $500,000
4.8% of taxable income
Over $500,000
$24,000 plus 5.9% of excess over
$500,000.
History:
1978 Comp., § 7-2A-5, enacted by Laws 1981, ch. 37, § 38; 1981, ch. 176, § 1; 1983, ch. 213, § 8; 1986, ch. 20, § 36; 1987, ch. 277, § 5; 2013, ch. 160, § 3; 2019, ch. 270, § 18.
ANNOTATIONS
The 2019 amendment,
effective January 1, 2020, revised corporate income tax rates and corporate income tax brackets; in the introductory clause, after "shall be:", deleted "at the rates specified in the following tables:"; deleted former Subsections A through E, subsection designation "F." and the language "for taxable years beginning on or after January 1, 2018"; and preceding each occurrence of "income", deleted "net" and added "taxable".
Applicability.
— Laws 2019, ch. 270, § 59 provided that the provisions of Sections 16 through 22 and 58 of Laws 2019, ch. 270 apply to taxable years beginning on or after January 1, 2020.
The 2013 amendment,
effective January 1, 2014, decreased certain corporate income tax rates over five years; in Subsection A, added the introductory sentence; and added Subsections B through F.
Use of federal tax code and regulations.
— New Mexico income taxation law does not adopt directly the Internal Revenue Code and Treasury Regulations, but does permit New Mexico taxpayers to enjoy the benefits of their election to use accelerated depreciation methodologies in calculating federal taxable income.
In re Rates and Charges of Mountain States Tel. & Tel. Co. v. N.M. State Corp. Comm'n
, 1986-NMSC-019, 104 N.M. 36, 715 P.2d 1332.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation § 469.
85 C.J.S. Taxation § 1698.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-5.1 - Corporate franchise tax amount.

The corporate franchise tax amount imposed on a corporation by Section 7-2A-3 NMSA 1978 shall be fifty dollars ($50.00) per taxable year or any fraction thereof.
History:
Laws 1986, ch. 20, § 37; 1992, ch. 78, § 3.
ANNOTATIONS
The 1992 amendment,
effective May 20, 1992, added "or any fraction thereof" at the end of the section.
Computation.
— The tax provided by the former section was a franchise tax, since neither the property nor the capital stock of the corporation is taxed. Values of property and gross receipts are used as factors to determine the number of shares of the corporate stock that measures the tax.
Southern Pac. Co. v. State Corp. Comm'n
, 1937-NMSC-059, 41 N.M. 556, 72 P.2d 15.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-6 - Tax computation; alternative method.

For those taxpayers who do not compute an amount upon which the federal income tax is calculated or who do not compute their federal income tax payable for the taxable year, the secretary shall prescribe such regulations or instructions as he may deem necessary to enable them to compute their corporate income tax due.
History:
1978 Comp., § 7-2A-6, enacted by Laws 1981, ch. 37, § 39; 1986, ch. 20, § 38.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 85 C.J.S. Taxation § 1756 to 1759.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-7 - Taxes applied to corporations on federal areas.

To the extent permitted by law, no corporation shall be relieved from liability for corporate income tax or corporate franchise tax by reason of receiving income from transactions occurring or work or services performed within a federal area.
History:
1978 Comp., § 7-2A-7, enacted by Laws 1981, ch. 37, § 40; 1986, ch. 20, § 39.
ANNOTATIONS
Cross references.
— For other taxes applicable in federal areas,
see
19-2-5 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation § 228.
84 C.J.S. Taxation § 292.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-8 - Repealed.

History:
1978 Comp., § 7-2A-8, enacted by Laws 1981, ch. 37, § 41; 1983, ch. 213, § 9; 1986, ch. 20, § 40; 1990, ch. 49, § 12; 1995, ch. 11, § 6; 1996, ch. 16, § 2; repealed by Laws 2019, ch. 270, § 58.
ANNOTATIONS
Repeals.
— Laws 2019, ch. 270, § 58 repealed 7-2A-8 NMSA 1978, as enacted by Laws 1981, ch. 37, § 41, relating to credit, income allocation and apportionment, effective January 1, 2020. For provisions of former section,
see
2019 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-8.1 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 49, § 22 repealed 7-2A-8.1 NMSA 1978, as enacted by Laws 1983, ch. 213, § 10, relating to credit for solar or wind energy equipment installation, effective January 1, 1993. For provisions of former section,
see
the 1992 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-8.2 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 49, § 21 repealed 7-2A-8.2 NMSA 1978, as enacted by Laws 1983, ch. 213, § 11, relating to tax credits for solar capital investments, effective January 1, 1991. For provisions of former section,
see
the 1990 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-8.3 - Combined and consolidated returns.

A. Corporations that are part of a unitary group shall file a return properly reporting and paying tax on taxable income as a worldwide combined group unless they properly elect to report and pay tax on taxable income as a water's-edge or consolidated group, pursuant to department rules and instructions, on the first original return required to be filed for taxable years beginning on or after January 1, 2020. Corporations electing to file a consolidated return must file on that same basis for federal income tax purposes. Once a unitary or consolidated group has properly made an election to file as a water's-edge or consolidated group, the group and any of the group's members shall file a return on that basis for at least seven consecutive years unless the secretary grants permission otherwise. Corporations that are part of a unitary group filing a return are jointly and severally liable for the tax imposed pursuant to the Corporate Income and Franchise Tax Act on taxable income.
B. Corporations required to file a return as part of a filing group pursuant to this section may designate a member of the group to act as the principal corporation to file the return, make any elections, claim tax credits or refunds or perform any other act on behalf of the group with respect to the corporate income tax; provided that the members of the group remain jointly and severally liable for the taxes due pursuant to Subsection A of this section.
History:
1978 Comp., § 7-2A-8.3, enacted by Laws 1983, ch. 213, § 12; 1986, ch. 20, § 43; 1993, ch. 307, § 4; 1993, ch. 309, § 2; 2013, ch. 160, § 4; 2019, ch. 270, § 19.
ANNOTATIONS
The 2019 amendment,
effective January 1, 2020, completely rewrote the section; in the section heading, added "and consolidated"; and deleted former Subsections A through D and added new Subsections A and B.
Applicability.
— Laws 2019, ch. 270, § 59 provided that the provisions of Sections 16 through 22 and 58 of Laws 2019, ch. 270 apply to taxable years beginning on or after January 1, 2020.
The 2013 amendment,
effective July 1, 2013, required combined reporting for certain unitary corporations with a retail facility of more than thirty thousand square feet but that do not have nonretail facilities that employ at least seven hundred fifty employees; in the first sentence, after "combined net income were that of one corporation", added the remainder of the sentence; and added Subsection D.
The 1993 amendment,
effective June 18, 1993, rewrote this section to the extent that a detailed comparison was impracticable.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-8.4 - Repealed.

History:
1978 Comp., § 7-2A-8.4, enacted by Laws 1983, ch. 213, § 13; 1986, ch. 20, § 44; 1993, ch. 307, § 5; 1993, ch. 309, § 3; repealed by Laws 2019, ch. 270, § 58.
ANNOTATIONS
Repeals.
— Laws 2019, ch. 270, § 58 repealed 7-2A-8.4 NMSA 1978, as enacted by Laws 1983, ch. 213, § 13, relating to consolidated returns, effective January 1, 2020. For provisions of former section,
see
the 2019 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-8.5 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 49, § 23 repealed 7-2A-8.5 NMSA 1978, as enacted by Laws 1983, ch. 212, § 2, relating to corporate income tax credit for geothermal capital investment, effective January 1, 1996.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-8.7 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1994, ch. 10, § 1, repealed 7-2A-8.7 NMSA 1978, as enacted by Laws 1993, ch. 309, § 4, relating to a temporary surcharge on certain returns, effective February 15, 1994. For provisions of former section,
see
the 1993 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-8.8 - Repealed.

History:
Laws 1998, ch. 97, § 3; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2A-8.8 NMSA 1978, as enacted by Laws 1998, ch. 97, § 3, relating to welfare-to-work tax credit, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-9.2 - Limitation on claiming of credits and tax rebates.

A credit or tax rebate provided in the Corporate Income and Franchise Tax Act that is claimed shall be disallowed if the claim for the credit or tax rebate was first made after the end of the third calendar year following the calendar year in which the return upon which the credit or rebate was first claimable was initially due.
History:
1978 Comp., § 7-2A-9.2, enacted by Laws 1990, ch. 23, § 2.
ANNOTATIONS
Effective dates.
— Laws 1990, ch. 23 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective May 16, 1990, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-10 - Information returns.

A. Pursuant to regulation, the secretary may require any person doing business in this state and making payments in the course of business to another person to file information returns with the department.
B. The provisions of this section also apply to payments made by the state of New Mexico, by the governing bodies of any political subdivision of the state of New Mexico, by any agency, department or instrumentality of the state or of any political subdivision thereof and, to the extent permitted by law or pursuant to any agreement entered into by the secretary, to payments made by any other governmental body or by an agency, department or instrumentality thereof.
History:
1978 Comp., § 7-2A-10, enacted by Laws 1981, ch. 37, § 43; 1983, ch. 213, § 14; 1986, ch. 20, § 48.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation § 589.
85 C.J.S. Taxation §§ 1699, 1777 et seq.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-11 - Accounting methods.

A taxpayer shall use the same accounting methods for reporting income for corporate income tax purposes as are used in reporting income for federal income tax purposes.
History:
1978 Comp., § 7-2A-11, enacted by Laws 1981, ch. 37, § 44; 1986, ch. 20, § 49.
ANNOTATIONS
Cross references.
— For deduction of accounting services from gross receipts by corporations,
see
7-9-69 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 578, 579.
85 C.J.S. Taxation § 1699.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-12 - Fiscal years permitted.

Any corporation which files income tax returns under the Internal Revenue Code on the basis of a fiscal year shall report income under the Corporate Income and Franchise Tax Act on the same basis.
History:
1978 Comp., § 7-2A-12, enacted by Laws 1981, ch. 37, § 45; 1986, ch. 20, § 50.
ANNOTATIONS
Cross references.
For the Internal Revenue Code,
see
26 U.S.C. § 1 et seq.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 578 to 586.
85 C.J.S. Taxation § 1697.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-13 - Administration.

The Corporate Income and Franchise Tax Act shall be administered pursuant to the provisions of the Tax Administration Act [Chapter 7, Article 1 NMSA 1978].
History:
1978 Comp., § 7-2A-13, enacted by Laws 1981, ch. 37, § 46; 1986, ch. 20, § 51.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-15 - Repealed.

History:
Laws 1994, ch. 115, § 2; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2A-15 NMSA 1978, as enacted by Laws 1994, ch. 115, § 2, relating to qualified business facility rehabilitation credit, corporate income tax credit, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-17 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1999, ch. 217, § 4 repealed 7-2A-17 NMSA 1978, as enacted by Laws 1999, ch. 217, § 2, relating to the job mentorship tax credit, effective January 1, 2002. For provisions of former section,
see
the 1998 NMSA 1978 on
NMOneSource.com.
Compiler's notes.
— For possible carry forward of credit after repeal of section,
see
temporary provisions note under this section on the 1998 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-18 - Repealed.

History:
Laws 2001, ch. 73, § 2; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2A-18 NMSA 1978, as enacted by Laws 2001, ch. 73, § 2, relating to credit, certain electronic equipment, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-20 - Repealed.

History:
Laws 2002, ch. 91, § 2.
ANNOTATIONS
Repeals.
— Laws 2002, ch. 91, § 3, repealed 7-2A-20 NMSA 1978, as enacted by Laws 2002, ch. 91, § 2, relating to a credit for produced water, effective January 1, 2006. For provisions of former section,
see
the 2005 NMSA 1978 on the
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-22 - Repealed.

History:
Laws 2007, ch. 204, § 6; repealed by Laws 2007, ch. 204, § 20.
ANNOTATIONS
Repeals.
— Laws 2007, ch. 204, § 20 repealed 7-2A-22 NMSA 1978, as enacted by Laws 2007, ch. 204, § 6, relating to a tax credit for agricultural water conservation expenses, effective January 1, 2013. For provisions of former section,
see
the 2012 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-23 - Repealed.

History:
Laws 2007, ch. 204, § 8; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2A-23 NMSA 1978, as enacted by Laws 2007, ch. 204, § 8, relating to credit, blended biodiesel fuel, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-24 - Geothermal ground-coupled heat pump tax credit.

A. A taxpayer that files a New Mexico corporate income tax return for a taxable year beginning on or after January 1, 2010 and that purchases and installs after January 1, 2010 but before December 31, 2020 a geothermal ground-coupled heat pump in a property owned by the taxpayer may claim against the taxpayer's corporate income tax liability, and the department may allow, a tax credit of up to thirty percent of the purchase and installation costs of the system. The credit provided in this section may be referred to as the "geothermal ground-coupled heat pump tax credit". The total geothermal ground-coupled heat pump tax credit allowed to a taxpayer shall not exceed nine thousand dollars ($9,000). The department shall allow a geothermal ground-coupled heat pump tax credit only for geothermal ground-coupled heat pumps certified by the energy, minerals and natural resources department.
B. A portion of the geothermal ground-coupled heat pump tax credit that remains unused in a taxable year may be carried forward for a maximum of ten consecutive taxable years following the taxable year in which the credit originates until the credit is fully expended.
C. Prior to July 1, 2010, the energy, minerals and natural resources department shall adopt rules establishing procedures to provide certification of geothermal ground-coupled heat pumps for purposes of obtaining a geothermal ground-coupled heat pump tax credit. The rules shall address technical specifications and requirements relating to safety, building code and standards compliance, minimum system sizes, system applications and lists of eligible components. The energy, minerals and natural resources department may modify the specifications and requirements as necessary to maintain a high level of system quality and performance.
D. The department may allow a maximum annual aggregate of two million dollars ($2,000,000) in geothermal ground-coupled heat pump tax credits. Applications for the credit shall be considered in the order received by the department.
E. As used in this section, "geothermal ground-coupled heat pump" means a reversible refrigerator device that provides space heating, space cooling, domestic hot water, processed hot water, processed chilled water or any other application where hot air, cool air, hot water or chilled water is required and that utilizes ground water or water circulating through pipes buried in the ground as a condenser in the cooling mode and an evaporator in the heating mode.
History:
Laws 2009, ch. 271, § 2.
ANNOTATIONS
Effective dates.
— Laws 2009, ch. 271 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 19, 2009, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-25 - Repealed.

History:
Laws 2009, ch. 279, § 2; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2A-25 NMSA 1978, as enacted by Laws 2009, ch. 279, § 2, relating to advanced energy corporate income tax credit, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-27 - Repealed.

History:
Laws 2012, ch. 55, § 2; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2A-27 NMSA 1978, as enacted by Laws 2012, ch. 55, § 2, relating to veteran employment tax credit, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-30 - Deduction to offset material financial effects of changes in deferred tax amounts due to certain changes made to sections 7-2A-2, 7-2A-3, 7-2A-8.3, 7-4-10 and 7-4-18 NMSA 1978.

A. For each of ten consecutive taxable years beginning on or after January 1, 2026, a filing group subject to the corporate income tax whose members are part of a publicly traded company may claim a deduction, as provided by Subsection B of this section, from taxable income before net operating losses are deducted.
B. The deduction for each taxable year shall not exceed one-tenth of the amount necessary to offset the aggregate increase in net deferred tax liabilities, the aggregate decrease in net deferred tax assets or an aggregate change from a net deferred tax asset to a net deferred tax liability, as measured under generally accepted accounting principles, that resulted from the changes to Sections 7-2A-2, 7-2A-3, 7-2A-8.3, 7-4-10 and 7-4-18 NMSA 1978 made by this 2019 act; provided that:
(1) the amount of the aggregate change in deferred tax assets and deferred tax liabilities is properly included in the calculation of the deferred tax asset or deferred tax liability reported as part of the consolidated financial statements, as required by the federal Securities Exchange Act of 1934, for the first reporting period affected by the changes to Sections 7-2A-2, 7-2A-3, 7-2A-8.3, 7-4-10 and 7-4-18 NMSA 1978 made by this 2019 act but for the deduction provided by this section; and
(2) if the deduction provided by this section is greater than the taxpayer's net income, any excess amount shall be carried forward and applied as a deduction to the taxpayer's net income in future income years until fully utilized.
C. A filing group shall not claim a deduction pursuant to this section unless the filing group files a preliminary notice with the secretary prior to January 1, 2023 and provides necessary information to show the calculation of the deduction expected to be claimed, as the secretary may require.
History:
Laws 2019, ch. 270, § 20; 2021, ch. 65, § 8.
ANNOTATIONS
Applicability.
— Laws 2019, ch. 270, § 59 provided that the provisions of Sections 16 through 22 and 58 of Laws 2019, ch. 270 apply to taxable years beginning on or after January 1, 2020.
The 2021 amendment,
effective July 1, 2021, clarified that the deduction is to offset changes in deferred tax liabilities; and in Subsection B, after "one-tenth of the amount", deleted "of" and added "necessary to offset".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2A - Corporate Income and Franchise Tax › Section 7-2A-31 - Deduction; income from leasing a liquor license.

A. Prior to January 1, 2026, a taxpayer that is a liquor license lessor and that held the license on June 30, 2021 may claim a deduction from taxable income in an amount equal to the gross receipts from sales of alcoholic beverages made by each liquor license lessee in an amount, if the liquor license is a dispenser's license and sales of alcoholic beverages for consumption off premises are less than fifty percent of total alcoholic beverage sales, not to exceed fifty thousand dollars ($50,000) for each of four taxable years.
B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction to the department in a manner required by the department.
C. The department shall compile an annual report on the deduction provided by this section that shall include the number of taxpayers that claimed the deduction, the aggregate amount of deductions claimed and any other information necessary to evaluate the cost of the deduction. The department shall provide the report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost of the deduction.
D. As used in this section:
(1) "alcoholic beverage" means alcoholic beverage as defined in the Liquor Control Act;
(2) "dispenser's license" means a license issued pursuant to the provisions of the Liquor Control Act [60-3A-1 NMSA 1978] allowing the licensee to sell, offer for sale or have in the person's possession with the intent to sell alcoholic beverages both by the drink for consumption on the licensed premises and in unbroken packages, including growlers, for consumption and not for resale off the licensed premises;
(3) "growler" means a clean, refillable, resealable container that has a liquid capacity that does not exceed one gallon and that is intended and used for the sale of beer, wine or cider;
(4) "liquor license" means a dispenser's license issued pursuant to Section 60-6A-3 NMSA 1978 or a dispenser's license issued pursuant to Section 60-6A-12 NMSA 1978 issued prior to July 1, 2021;
(5) "liquor license lessee" means a person that leases a liquor license from a liquor license lessor; and
(6) "liquor license lessor" means a person that leases a liquor license to a third party.
History:
Laws 2021, ch. 7, § 2.
ANNOTATIONS
Effective dates.
— Laws 2021, ch. 7, § 37 made Laws 2021, ch. 7, § 2 effective July 1, 2021.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2B - Solar Capital Investments (Recompiled.) › Section 7-2B-1 - Recompiled.

ANNOTATIONS
Recompilations.
— Laws 1983, ch. 213, § 4, recompiled former 7-2B-1 NMSA 1978, relating to tax credit for solar investments, as 7-2-16.1 NMSA 1978.
Laws 1990, ch. 49, § 20 repealed 7-2-16.1 NMSA 1978, effective May 16, 1990.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2C - Tax Refund Intercept Program › Section 7-2C-1 - Short title.

Chapter 7, Article 2C NMSA 1978 may be cited as the "Tax Refund Intercept Program Act".
History:
Laws 1985, ch. 106, § 1; 1993, ch. 30, § 12.
ANNOTATIONS
The 1993 amendment,
effective June 18, 1993, substituted "Chapter 7, Article 2C NMSA 1978" for "This act".
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 608, 610.
85 C.J.S. Taxation § 1763 to 1764.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2C - Tax Refund Intercept Program › Section 7-2C-4 - Remedy additional.

The remedies of a claimant agency under the Tax Refund Intercept Program Act are in addition to and not in substitution for any other remedies available by law.
History:
Laws 1985, ch. 106, § 4.
ANNOTATIONS
Effective dates.
— Laws 1985, ch. 106 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 14, 1985, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2C - Tax Refund Intercept Program › Section 7-2C-5 - Department to aid in collection of debts through setoff.

Subject to the limitations contained in the Tax Refund Intercept Program Act, the department, upon request, shall render assistance in the collection of any debt owed to a claimant agency or any debt that a claimant agency is obligated by law to collect. This assistance shall be provided by withholding from any refund due to the debtor pursuant to the Income Tax Act [Chapter 7, Article 2 NMSA 1978] the amount of debt meeting the requirements of the Tax Refund Intercept Program Act and paying over to the claimant agency the amount withheld.
History:
Laws 1985, ch. 106, § 5; 1994, ch. 56, § 2.
ANNOTATIONS
The 1994 amendment,
effective May 18, 1994, substituted "Department" for "Division" in the section heading, and "department" for "division" and "that" for "which" in the first sentence.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2C - Tax Refund Intercept Program › Section 7-2C-7 - Suspense account.

Upon receipt of money transferred from the department pursuant to Subsection H of Section 7-2C-6 NMSA 1978, the claimant agency shall deposit and hold the money in the suspense account until a final determination of the setoff is made.
History:
Laws 1985, ch. 106, § 7; 1994, ch. 56, § 4.
ANNOTATIONS
The 1994 amendment,
effective May 18, 1994, substituted "department" for "division" and "Section 7-2C-6 NMSA 1978" for "Section 6 of the Tax Refund Intercept Program Act".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2C - Tax Refund Intercept Program › Section 7-2C-8 - Interest becomes obligation of claimant agency.

Once a transfer is made by the department pursuant to Subsection H of Section 7-2C-6 NMSA 1978, notwithstanding any other provision of law to the contrary, the department, except in its capacity as a claimant agency, is not obligated in any manner for the payment of interest to the debtor or to the claimant agency with respect to that portion of the refund against which the asserted debt was applied for any period after the date of transfer. Any interest subsequently determined to be due the debtor with respect to any refund against which the asserted debt was applied for any period after the date of transfer is the responsibility of the claimant agency; provided, however, compliance by the department and claimant agency with the provisions of the Tax Refund Intercept Program Act bars accrual of interest, notwithstanding the provisions of Section 7-1-68 NMSA 1978.
History:
Laws 1985, ch. 106, § 8; 1994, ch. 56, § 5.
ANNOTATIONS
The 1994 amendment,
effective May 18, 1994, substituted "department" for "division" twice in the first sentence and once in the proviso clause in the second sentence, and "Section 7-2C-6 NMSA 1978" for "Section 6 of the Tax Refund Intercept Program Act" in the first sentence.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2C - Tax Refund Intercept Program › Section 7-2C-9 - Administrative hearing required of claimant agency; department exempted.

A. The claimant agency shall provide notice and opportunity for hearing, consistent with due process, as required by Subsections F and G of Section 7-2C-6 NMSA 1978.
B. Notwithstanding any other provision of law, the department, except in its capacity as a claimant agency, is not obligated to grant, and will not grant, a hearing to any debtor or spouse with respect to any action taken or any issue arising under the provisions of the Tax Refund Intercept Program Act.
History:
Laws 1985, ch. 106, § 9; 1994, ch. 56, § 6.
ANNOTATIONS
The 1994 amendment,
effective May 18, 1994, substituted "department" for "division" in the catchline and in Subsection B, and "Section 7-2C-6 NMSA 1978" for "Section 6 of the Tax Refund Intercept Program Act" in Subsection A.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2C - Tax Refund Intercept Program › Section 7-2C-12 - Administrative costs; charges appropriated to department.

A. The department shall charge claimant agencies an administrative fee of three percent of the debts for the claimant agencies pursuant to the Tax Refund Intercept Program Act.
B. The administrative fee authorized pursuant to Subsection A of this section shall be withheld on all debts set off and collected by the department on or after July 1, 1997 and shall be distributed monthly to the New Mexico finance authority to be pledged irrevocably for the payment of the principal, interest and expenses or other obligations related to the bonds for the taxation and revenue information management systems project. That distribution shall continue until the earlier of December 31, 2005 or the date on which the New Mexico finance authority certifies to the department that all obligations for bonds issued pursuant to Section 12 of this 1997 act have been fully discharged or provision has been made for their discharge and directs the department to cease distributing the money from the fee pursuant to Subsection A of this section to the authority. Thereafter, the administrative fees are appropriated to the department for use in administering the Tax Refund Intercept Program Act.
History:
Laws 1985, ch. 106, § 12; 1994, ch. 56, § 8; 1997, ch. 125, § 5.
ANNOTATIONS
Compiler's notes.
— The phrase "Section 12 of this 1997 act" in Subsection B referred to Section 12 of Laws 1997, ch. 125, which was an uncompiled provision authorizing the issuance of revenue bonds.
The 1997 amendment,
effective July 1, 1997, added the Subsection A designation, rewrote Subsection A, and added Subsection B.
The 1994 amendment,
effective May 18, 1994, substituted "department" for "division" in the section heading and throughout the section.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2C - Tax Refund Intercept Program › Section 7-2C-13 - Confidentiality; exemption.

A. The information obtained by a claimant agency from the department in accordance with the provisions of the Tax Refund Intercept Program Act shall be confidential and shall be used by the claimant agency only in pursuit of the collection of a debt under the provisions of the Tax Refund Intercept Program Act. Any employee or former employee of a claimant agency who unlawfully discloses any information obtained from the department is guilty of a misdemeanor and shall, upon conviction, be fined not more than one thousand dollars ($1,000) or imprisoned not more than one year or both and shall not be employed by the state for a period of five years after the date of conviction.
B. Notwithstanding other provisions of law prohibiting disclosure by the department of information from a taxpayer's return, the department may provide to a claimant agency any information deemed necessary by the department to accomplish the purposes of the Tax Refund Intercept Program Act.
History:
Laws 1985, ch. 106, § 13; 1994, ch. 56, § 9.
ANNOTATIONS
The 1994 amendment,
effective May 18, 1994, substituted "department" for "division" throughout the section and deleted "thereof" following "upon conviction" in the second sentence in Subsection A.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2C - Tax Refund Intercept Program › Section 7-2C-14 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1999, ch. 47, § 9 repealed 7-2C-14 NMSA 1978, as enacted by Laws 1985, ch. 106, § 14, relating to administrative regulations, rulings, instructions and orders for purposes of the Tax Refund Intercept Program Act, effective June 18, 1999. For provisions of the former section,
see
the 1998 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-1 - Short title.

Chapter 7, Article 2D NMSA 1978 may be cited as the "Venture Capital Investment Act".
History:
Laws 1993, ch. 313, § 1; 1995, ch. 89, § 1.
ANNOTATIONS
The 1995 amendment,
effective June 16, 1995, substituted "Chapter 7, Article 2D NMSA 1978" for "This act".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-2 - Definitions.

As used in the Venture Capital Investment Act:
A. "capital gain tax differential" equals either:
(1) an amount equal to fifty percent of the federal income tax paid by the taxpayer on qualified diversifying business net capital gains; or
(2) in the event that the taxpayer makes an election pursuant to Section 7-2D-13 NMSA 1978, and the taxpayer has not previously paid federal income tax on the qualified diversifying business net capital gain that accrued prior to that election, then an amount equal to fifty percent of the federal income tax paid by the taxpayer on the gain on the sale of that qualified diversifying business stock times the percentage derived by dividing the gain on such stock accruing since the election by the total gain on the stock accruing since its original acquisition without regard to the election;
B. "department" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;
C. "Internal Revenue Code" means the federal Internal Revenue Code of 1986, as amended or renumbered;
D. "manufacturing business" means the manufacture of, and the business activities related to the manufacture of, all nondurable and durable goods;
E. "New Mexico income tax" means the tax imposed pursuant to the Income Tax Act [Chapter 7, Article 2 NMSA 1978];
F. "qualified diversifying business net capital gain" means the net capital gain for the taxable year determined under the Internal Revenue Code by taking into account only gains or losses from sales or exchanges of qualified diversifying business stock with a holding period of more than five years at the time of the sale or exchange;
G. "secretary" means the secretary of taxation and revenue or the secretary's delegate;
H. "taxpayer" means any individual subject to the tax imposed pursuant to the Income Tax Act; and
I. "testing period" means the five-year period a stock is held by a taxpayer, beginning with the first day of the taxpayer's holding period for the stock.
History:
Laws 1993, ch. 313, § 2; 1995, ch. 89, § 2.
ANNOTATIONS
Cross references.
— For the Internal Revenue Code,
see
26 U.S.C. § 1.
The 1995 amendment,
effective June 16, 1995, added Subsections A, D and F and redesignated the remaining subsections accordingly.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-3 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1995, ch. 89, § 11 repealed 7-2D-3 NMSA 1978, as enacted by Laws 1993, ch. 313, § 3, relating to the tax credit for federal income tax paid on a qualified diversifying business net capital gain, effective June 16, 1995. For provisions of the former section,
see
the 1994 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-4 - Additional definition; qualified diversifying business stock.

A. For purposes of the Venture Capital Investment Act, "qualified diversifying business stock" means, except as otherwise provided in Section 7-2D-13 NMSA 1978, any stock in a corporation that is originally issued after June 30, 1994 but before July 1, 2001, if:
(1) on the date of issuance the corporation is a qualified diversifying business;
(2) except as otherwise provided in Subsection B of this section and in Sections 7-2D-9 and 7-2D-10 NMSA 1978, the stock is acquired by the taxpayer at its original issue, either:
(a) in exchange for money or other property, not including stock; or
(b) as compensation for services, other than services performed as an underwriter of such stock; and
(3) the corporation throughout the testing period is an active manufacturing business and a New Mexico business and at the end of the testing period is a successful business.
B. For purposes of Paragraph (2) of Subsection A of this section, stock shall not be treated as acquired by the taxpayer at its original issue if:
(1) it is issued directly or indirectly in redemption of, or otherwise in exchange for, stock that is not qualified diversifying business stock; or
(2) it is issued in an exchange described in Section 351 of the Internal Revenue Code in exchange for property other than qualified diversifying business stock if, immediately after the exchange, both the issuer and transferee of the stock are members of the same controlled group of corporations as defined in Section 1563 of the Internal Revenue Code.
History:
Laws 1993, ch. 313, § 4; 1995, ch. 89, § 3.
ANNOTATIONS
Cross references.
— For Sections 351 and 1563 of the Internal Revenue Code,
see
26 U.S.C. §§ 351 and 1563.
The 1995 amendment,
effective June 16, 1995, in Subsection A, substituted "Section 7-2D-13 NMSA 1978" for "Section 13 of that act" in the introductory paragraph; substituted "Sections 7-2D-9 and 7-2D-10 NMSA 1978" for "Sections 9 and 10 of the Venture Capital Investment Act" in Paragraph (2); and rewrote former Paragraph (3) which formerly required that stock meet the requirements of Sections 6, 7 and 8 of the Venture Capital Investment Act throughout the testing period.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-5 - Additional definition; qualified diversifying business.

A. For purposes of the Venture Capital Investment Act, "qualified diversifying business" means, except as otherwise provided in Section 7-2D-13 NMSA 1978, any domestic corporation that has its commercial domicile in New Mexico and with respect to which the aggregate amount of money, other property and services received by the corporation for stock, as a contribution to capital and as paid-in surplus, plus the accumulated earnings and profits of the corporation, does not exceed twenty-five million dollars ($25,000,000); provided:
(1) the aggregate amount shall be determined at the time of issuance and shall include amounts received in the issuance and all prior issuances; and
(2) in the case of stock issued in a calendar year after 1993, the aggregate amount shall not exceed an amount equal to twenty-five million dollars ($25,000,000) multiplied by the cost-of-living adjustment determined under Section 1 (f)(3) of the Internal Revenue Code for that calendar year by substituting "1992" for "1987" in Subparagraph (B) of that section.
B. For the purpose of determining the aggregate amount in Subsection A of this section:
(1) the amount taken into account with respect to any property other than money shall be an amount equal to the adjusted basis of that property for determining capital gain:
(a) reduced to not below zero by any liability to which the property was subject or that was assumed by the corporation; and
(b) determined at the time the property was received by the corporation; and
(2) the amount taken into account with respect to stock issued for services shall be the value of those services.
History:
Laws 1993, ch. 313, § 5; 1995, ch. 89, § 4.
ANNOTATIONS
Cross references.
— For Section 1(f)(3) of the Internal Revenue Code,
see
26 U.S.C. § 1(f)(3).
The 1995 amendment,
effective June 16, 1995, substituted "Section 7-2D-13 NMSA 1978" for "Section 13 of that act" in the introductory paragraph of Subsection A; substituted "aggregate amount shall be determined" for "determination made under this subsection shall be made" and "and" for "but" in Paragraph A(1); inserted "aggregate" near the beginning of Paragraph A(2); substituted "determining the aggregate amount" for "making the determination" in the introductory paragraph of Subsection B; and made minor stylistic changes throughout the section.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-6 - Additional definition; active manufacturing business.

A. Except as otherwise provided in this section, for the purposes of the Venture Capital Investment Act, "active manufacturing business" means a corporation that throughout the testing period:
(1) either:
(a) is engaged in the active conduct of a manufacturing business; and
(b) uses substantially all of its assets in the active conduct of a manufacturing trade or business; provided, rights to computer software that produce income described in Section 543(d) of the Internal Revenue Code and any assets that are held for investment and are to be used to finance future research and experimentation or working capital needs of the corporation shall be treated as assets used in the active conduct of a manufacturing business; or
(2) is engaged in any of the following activities, whether or not the corporation has any gross income from such activities at the time of the determination:
(a) start-up activities described in Section 195(c)(1)(A) of the Internal Revenue Code;
(b) activities resulting in the payment or incurring of expenditures that may be treated as research and experimental expenditures under Section 174 of the Internal Revenue Code; or
(c) activities with respect to in-house research expenses described in Section 41(b)(4) of the Internal Revenue Code.
B. A corporation shall not be considered an active manufacturing business if at any time during the testing period:
(1) more than ten percent of the value of its assets in excess of liabilities consists of stock in other corporations that are not subsidiaries of that corporation; provided:
(a) for purposes of this section, stock and debt in any subsidiary corporation shall be disregarded and the parent corporation shall be deemed to own its ratable share of the subsidiary's assets and to conduct its ratable share of the subsidiary's activities; and
(b) a corporation shall be considered a subsidiary if the parent owns at least fifty percent of the combined voting power of all classes of stock entitled to vote or at least fifty percent in value of all outstanding stock of that corporation; or
(2) more than ten percent of the total value of its assets is real property that is not used in the active conduct of a manufacturing business. The ownership of, dealing in or renting of real property shall not be treated as the active conduct of a manufacturing business.
History:
Laws 1993, ch. 313, § 6; 1995, ch. 89, § 5.
ANNOTATIONS
Cross references.
— For Sections 41, 174, 195, and 543 of the Internal Revenue Code,
see
26 U.S.C. §§ 41, 174, 195, and 543, respectively.
The 1995 amendment,
effective June 16, 1995, rewrote the section heading which read "active manufacturing business requirement" and rewrote the section to such an extent that a detailed comparison would be impracticable.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-7 - Additional definition; New Mexico business.

For the purposes of the Venture Capital Investment Act, "New Mexico business" means a corporation that throughout the testing period meets these conditions:
A. the corporation has its commercial domicile in New Mexico and all of its corporate directors who are also employees of the corporation are full-time residents of New Mexico;
B. at least two-thirds of all of the corporation's employees, at least two-thirds of its employees who perform research, development or design activities and at least two-thirds of its employees who perform manufacturing activities are full-time residents of New Mexico;
C. the corporation maintains an employee stock purchase plan, incentive stock option plan or similar plan pursuant to which employees of the corporation have the opportunity to acquire equity ownership in the corporation; and
D. the corporation employs on a full-time basis an average of at least fifty full-time New Mexico residents.
History:
Laws 1993, ch. 313, § 7; 1995, ch. 89, § 6.
ANNOTATIONS
The 1995 amendment,
effective June 16, 1995, rewrote the section heading which read "New Mexico business requirement" and rewrote the introductory paragraph which read "A corporation meets the requirements pursuant to Paragraph (3) of Subsection A of Section 4 of the Venture Capital Investment Act if throughout the testing period".