reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 2 - INVESTMENT TAX CREDIT › Section 3.13.2.8 - INDUSTRIAL REVENUE BONDS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Any equipment that is placed into service
				on or after January 1, 1991, under the provisions of either the Industrial
				Revenue Bond Act or the County Industrial Revenue Bond and that otherwise meets
				the requirements of the Investment Credit Act is "qualified equipment" for the
				purpose of the Investment Credit Act.
B. Tangible personal property placed into
				service prior to January 1, 1991, under the provisions of either the Industrial
				Revenue Bond Act or the County Industrial Revenue Bond Act is not "equipment"
				for the purpose of the Investment Credit Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 2 - INVESTMENT TAX CREDIT › Section 3.13.2.9 - ITEMS NOT "EQUIPMENT"

Current through Register Vol. 35, No. 13, July 16, 2024
Tangible personal property which is not a machine, mechanism
				  or tool, or a component or fitting thereof, is not "equipment" for the purpose
				  of the Investment Credit Act. Accordingly such items as furniture, shelving and
				  supplies are not "equipment". Equipment that is neither essential to nor used
				  in conjunction with the manufacturing plant will not qualify for the investment
				  credit, even if that equipment is physically located in the plant.
				  Nonqualifying equipment may include, but is not limited to: coffee makers,
				  kitchen equipment used in an employee cafeteria and televisions or radios used
				  in an employee lounge or in a reception area.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 2 - INVESTMENT TAX CREDIT › Section 3.13.2.10 - ITEMS WHICH MAY BE INCLUDED AS "EQUIPMENT"

Current through Register Vol. 35, No. 13, July 16, 2024
The term "manufacturing operation" is defined as a plant
				  where personnel perform production tasks "in conjunction with equipment not
				  previously existing at the site" to produce goods. Equipment need not be
				  employed exclusively in the manufacturing process as long as the equipment is
				  physically located in the plant and is used in conjunction with the production
				  of goods. Therefore, equipment used in conjunction with the production of goods
				  may include, but is not limited to, such items as manufacturing process
				  equipment, lights, boilers, air conditioners, smoke detectors and other
				  equipment essential to maintaining the proper climate for the manufacturing
				  process, packaging equipment used to put the manufactured product in marketable
				  form, warehousing equipment and computers used to control the manufacturing
				  process or to inventory and schedule the shipping of manufactured
				  products.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 2 - INVESTMENT TAX CREDIT › Section 3.13.2.11 - EQUIVALENT OF ONE FULL-TIME EMPLOYEE

Current through Register Vol. 35, No. 13, July 16, 2024
To calculate the number of full-time-equivalent employees,
				  add the average weekly hours worked or expected to be worked by all employees
				  whose regular weekly work hours are or are expected to be less than forty
				  hours. Divide the total by 40 and round down to the nearest whole number. The
				  rounded number plus the number of employees who work or are expected to work an
				  average of 40 or more hours per week is the number of full-time equivalent
				  employees.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 2 - INVESTMENT TAX CREDIT › Section 3.13.2.12 - EMPLOYMENT INCREASE ESSENTIAL

Current through Register Vol. 35, No. 13, July 16, 2024
A. The investment credit is available only to
				manufacturers who increase employment in the relevant periods. Manufacturers
				who do not meet the employment requirement do not qualify for the investment
				credit, regardless of the amount of equipment acquired.
B. Example:
(1) X is a manufacturer who establishes a new
				manufacturing operation in New Mexico on August 1 of year 1. Prior to
				establishing this plant, X had no operations or employees in New Mexico.
				Beginning with June 15 of year 1 through August 1, X hires 20 full-time
				equivalent employees to work in that plant. On January 15 of year 2, X submits
				an application for an investment credit with respect to equipment placed in the
				new plant as of August 1. Since on January 15 of year 1 X had no employees in
				New Mexico, X may count all 20 employees in meeting the employment requirement
				for this application.
(2) X
				acquires and installs additional new equipment during the period September 1
				through December 15 of year 1, during which time X hires two more full-time
				equivalent employees. Unfortunately sales are below X's expectations and so in
				April of year 2 X lays off 3 full-time employees. In August of year 2, X files
				a second application for an investment credit with respect to the additional
				equipment. None of the 20 employees counted in the first application may be
				counted for purposes of meeting the employment requirement in the second
				application. Since X has in fact decreased employment over the relevant time
				period, X does not meet the employment requirement and X's application for a
				second credit will be denied.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 2 - INVESTMENT TAX CREDIT › Section 3.13.2.13 - APPLICATION OF THE CREDIT

Current through Register Vol. 35, No. 13, July 16, 2024
The credit allowed by Section
				  7-9A-8
				  NMSA 1978 may not be applied against any local option gross receipts tax
				  imposed by a county or municipality.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 2 - INVESTMENT TAX CREDIT › Section 3.13.2.14 - CREDIT NOT TRANSFERABLE

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Any amount of investment credit claimed and approved may be applied by the
				claimant only against the gross receipts, compensating and withholding taxes
				owed by the claimant. The credit amount may not be transferred to any other
				person, including an affiliate.
B.
				Example:
(1) Corporation T sets up a
				manufacturing operation in New Mexico. T subsequently qualifies for $50,000 in
				investment credit. After applying $13,000 to its own gross receipts,
				compensating and withholding tax liabilities, T creates a subsidiary
				corporation, S, to own and operate all of T's New Mexico business, including
				the manufacturing operation. T may not transfer the $37,000 remaining
				authorized investment credit to S nor may S apply any of the remaining tax
				credit to S's gross receipts, compensating and withholding tax liability. T, to
				the extent T still has gross receipts, compensating and withholding tax
				obligations, may apply the $37,000 balance against those obligations.
(2) When two or more corporations merge, the
				resultant corporation is a continuation of any predecessor corporation. When a
				business organization changes its form, as for example from a sole
				proprietorship to a corporation or from a corporation to a limited liability
				company, so that the resultant entity is a successor in business to the
				predecessor, the resultant entity shall be deemed a continuation of the
				predecessor for investment credit purposes. In both cases, since there is no
				transfer, the resultant entity may claim any amount of approved but unclaimed
				investment credit held by a predecessor.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 2 - INVESTMENT TAX CREDIT › Section 3.13.2.15 - REPORTING NUMBER OF EMPLOYEES - ESTIMATES

Current through Register Vol. 35, No. 13, July 16, 2024
To meet the employment requirement, the credit claimant must
				  report the number of full-time-equivalent employees employed on the day the
				  credit is applied for. This number is to be compared with the number of
				  full-time-equivalent employees on the same day in the prior year. Because
				  complete employee data may not be available for the day on which the credit is
				  applied for, a credit claimant may estimate the number of full-time-equivalent
				  employees employed on the day the credit is applied for, provided that the
				  claimant must provide the actual number of full-time-equivalent employees
				  within forty-five days from the end of the calendar quarter in which the claim
				  is applied for. The fact that an estimate is used in the claim must be clearly
				  indicated. The department may withhold approval of the claim until the correct
				  number is provided and will deny the claim if the correct number is not
				  provided.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 2 - INVESTMENT TAX CREDIT › Section 3.13.2.16 - WHEN CLAIM BARRED

Current through Register Vol. 35, No. 13, July 16, 2024
If a taxpayer claims any amount of research and development
				  small business tax credit with respect to a reporting period, the taxpayer may
				  not claim any amount of approved investment credit with respect to that same
				  period. If for the same reporting period an amount of investment credit is
				  claimed in addition to any amount of research and development small business
				  tax credit, the amount of investment credit will be disallowed by the
				  department, which may result in an underpayment of tax. The taxpayer is not
				  barred from applying for approval of new or additional investment credit with
				  respect to qualified equipment purchased or introduced into New Mexico during
				  that reporting period.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 3 - CALL CENTER EQUIPMENT TAX CREDIT › Section 3.13.3.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 3 - CALL CENTER EQUIPMENT TAX CREDIT › Section 3.13.3.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to all persons subject to the gross
				  receipts, compensating or withholding tax and operating a call center in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 3 - CALL CENTER EQUIPMENT TAX CREDIT › Section 3.13.3.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
11/15/99, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 3 - CALL CENTER EQUIPMENT TAX CREDIT › Section 3.13.3.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Capital Equipment Tax Credit
				  Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 4 - RURAL JOB TAX CREDIT › Section 3.13.4.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 4 - RURAL JOB TAX CREDIT › Section 3.13.4.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to all employers subject to the gross
				  receipts, compensating, withholding or corporate income tax and approved for
				  in-plant training assistance by the economic development
				  department.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 4 - RURAL JOB TAX CREDIT › Section 3.13.4.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
2/14/00, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 4 - RURAL JOB TAX CREDIT › Section 3.13.4.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of Sections
				  7-2E-1 and
				  7-2E-2 NMSA
				  1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 4 - RURAL JOB TAX CREDIT › Section 3.13.4.8 - APPLICATION OF THE CREDIT

Current through Register Vol. 35, No. 13, July 16, 2024
The credit allowed by Section
				  7-2E-1 NMSA 1978 may not
				  be applied against any local option gross receipts tax imposed by a county or
				  municipality.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 4 - RURAL JOB TAX CREDIT › Section 3.13.4.9 - CREDIT TRANSFERABLE - TRANSFER REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Any amount of rural job tax credit claimed
				and approved may be applied by the claimant only against the claimant's
				modified combined tax liability, as that term is defined in Section
				7-2E-1 NMSA 1978, and
				personal or corporate income tax owed by the claimant. If any amount of
				approved credit is sold, exchanged or otherwise transferred to another person,
				that person may apply the credit amount transferred only against that person's
				modified combined tax liability, as that term is defined in Section
				7-2E-1 NMSA 1978, and
				personal or corporate income tax owed by that person. No credit will be
				approved with respect to employment prior to July 1, 2000.
B. No person who has received approval for a
				certain amount of rural job tax credit may sell to any other person more than
				the amount approved or more than the amount approved less amounts claimed and
				allowed.
C. The sale, exchange or
				other transfer of an amount of rural job tax credit is not effective and will
				not be honored by the department unless the seller notifies the department in
				writing of the fact of the proposed sale, exchange or other transfer, the name,
				address, taxpayer identification number and telephone number of the person to
				whom the credit is being sold, exchanged or transferred and the amount of
				credit being sold, exchanged or transferred. The department will compare the
				credit amount the department records show as unclaimed with the amount proposed
				to be sold, exchanged or transferred. if the credit amount shown on department
				records is less than the amount proposed to be transferred, the department will
				notify both parties in writing of that fact.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 4 - RURAL JOB TAX CREDIT › Section 3.13.4.10 - EFFECT OF CHANGE IN MUNICIPAL POPULATION

Current through Register Vol. 35, No. 13, July 16, 2024
A. If the population of a municipality within
				the rural area is 15,000 or fewer according to the 1990 decennial census but
				greater than 15,000 according to the 2000 decennial census,
(1) credits based on a location that changes
				from a tier one area to a tier two area as a result of the 2000 decennial
				census shall be deemed to be tier one area credits and credit amounts may be
				claimed for four qualifying periods if all other requirements are satisfied and
				the credit was approved prior to the time the 2000 decennial census population
				for the location is announced officially; and
(2) credits based on a location that changes
				from a tier one area to a tier two area as a result of the 2000 decennial
				census shall be deemed to be tier two area credits and credit amounts may be
				claimed for two qualifying periods if all other requirements are satisfied and
				the credit was applied for but not approved by the Department at the time the
				2000 decennial census population for the location is announced
				officially.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 5 - TECHNOLOGY JOBS TAX CREDIT › Section 3.13.5.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 5 - TECHNOLOGY JOBS TAX CREDIT › Section 3.13.5.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
10/31/05, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 5 - TECHNOLOGY JOBS TAX CREDIT › Section 3.13.5.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Technology Jobs Tax Credit
				  Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 5 - TECHNOLOGY JOBS TAX CREDIT › Section 3.13.5.8 - AMOUNTS CONSTITUTING WAGES TO MEET ELIGIBILITY REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. In calculating
				the annual payroll expense and base payroll expense for purposes of determining
				eligibility for the additional credit under Subsection B of Section
				7-9F-6
				NMSA 1978, a taxpayer may include total wages paid to all employees at a
				qualified New Mexico facility. "Wages" as used in Subsection K of Section
				7-9F-3 NMSA 1978
				means "wages" as defined under section 3401(a) of the Internal Revenue Code.
				Thus, "wages" used to meet eligibility requirements of the Technology Jobs Tax
				Credit Act are the same as those that are included or will be included in box 1
				of the annual statement of withholding (form W-2) as required under Subsection
				A of Section
				7-3-7
				NMSA 1978.
B. Example: Taxpayer X
				conducts research and development at a qualified facility in New Mexico. In
				addition to wages paid for employees directly involved in research and
				development, X pays wages to administrative personnel at the facility. Wages
				paid to administrative personnel may also be included in annual payroll expense
				and base payroll expense for purposes of determining eligibility for the
				additional credit under the Act. Taxpayer X may not include any expenses not
				included as wages on form W-2, such as expenses for employee health insurance,
				retirement plan contributions, or the value of employee stock options when
				calculating annual payroll expense and base payroll expense.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 5 - TECHNOLOGY JOBS TAX CREDIT › Section 3.13.5.9 - STATUTE OF LIMITATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A
				taxpayer must file its application for approval of a credit within one year of
				the end of the calendar year in which the qualified expenditures were
				made.
B. Example: Taxpayer X makes
				qualified expenditures from January 1 through October 30, 2005. X must submit
				its application for credit under the Technology Jobs Tax Credit Act by no later
				than December 31, 2006.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 5 - TECHNOLOGY JOBS TAX CREDIT › Section 3.13.5.10 - ELIGIBILITY REQUIREMENTS - ADDITIONAL CREDIT - ESTIMATES

Current through Register Vol. 35, No. 13, July 16, 2024
A. A taxpayer claiming the additional credit
				must compute annual payroll expense for the period specified in the application
				and must compute base payroll expense as of a date one year prior to the annual
				payroll date.
B. Because complete
				payroll data to calculate "annual payroll expense" and "base payroll expense"
				may not be available on the day the credit is applied for, a credit claimant
				may estimate the number of these two amounts on the credit application,
				provided that the claimant must provide the actual "annual payroll expense" and
				"base payroll expense" amounts within forty-five days from the end of the
				calendar quarter in which the claim is applied for. The fact that an estimate
				is used in the claim must be clearly indicated. The department may withhold
				approval of the claim until the correct numbers are provided and will deny the
				claim if the correct numbers are not provided.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 5 - TECHNOLOGY JOBS TAX CREDIT › Section 3.13.5.11 - WHEN CLAIM BARRED

Current through Register Vol. 35, No. 13, July 16, 2024
If a taxpayer claims any amount of research and development
				  small business tax credit with respect to a reporting period, the taxpayer may
				  not claim any amount of technology jobs tax credit with respect to that same
				  period. If for the same reporting period an amount of technology jobs tax basic
				  credit is claimed in addition to any amount of research and development small
				  business tax credit, the amount of technology jobs tax credit will be
				  disallowed by the department, which may result in an underpayment of tax. The
				  taxpayer is not barred from applying for approval of new or additional
				  technology jobs tax credit with respect to qualified expenditures in that
				  reporting period.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 6 - RESEARCH AND DEVELOPMENT SMALL BUSINESS TAX CREDIT › Section 3.13.6.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 6 - RESEARCH AND DEVELOPMENT SMALL BUSINESS TAX CREDIT › Section 3.13.6.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  9-11-6.2
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 6 - RESEARCH AND DEVELOPMENT SMALL BUSINESS TAX CREDIT › Section 3.13.6.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
5/15/07, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 6 - RESEARCH AND DEVELOPMENT SMALL BUSINESS TAX CREDIT › Section 3.13.6.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Research and Development Small
				  Business Tax Credit Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 6 - RESEARCH AND DEVELOPMENT SMALL BUSINESS TAX CREDIT › Section 3.13.6.8 - EQUIVALENT OF ONE FULL-TIME EMPLOYEE

Current through Register Vol. 35, No. 13, July 16, 2024
To calculate the number of full-time-equivalent employees,
				  add the average weekly hours worked or expected to be worked by all employees
				  whose regular weekly work hours are or are expected to be less than forty
				  hours. Divide the total by 40 and round down to the nearest whole number. The
				  rounded number plus the number of employees who work or are expected to work an
				  average of 40 or more hours per week is the number of full-time equivalent
				  employees.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to all persons carrying on a manufacturing
				  operation in New Mexico that produce alternative energy products and who may be
				  eligible to obtain the alternative energy product manufacturers tax
				  credit.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  7-9J-1 through 8 and
				  9-11-6.2
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
12/31/08, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Alternative Energy Product
				  Manufacturers Tax Credit Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.7 - DEFINITIONS: "SUBJECT TO DEPRECIATION" DEFINED

Current through Register Vol. 35, No. 13, July 16, 2024
For purposes of Section
				  7-9J-2 NMSA 1978
				  "subject to depreciation" means the taxpayer's federal income tax return must
				  include a depreciation expense with respect to the manufacturing equipment for
				  which an alternative energy product manufacturer's tax credit is sought or
				  claimed. Equipment depreciated under the accelerated cost recovery system,
				  Internal Revenue Code Section 168, and property for which the taxpayer makes an
				  election under Internal Revenue Code Section 179 is "subject to
				  depreciation".
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.9 - ITEMS NOT "MANUFACTURING EQUIPMENT"

Current through Register Vol. 35, No. 13, July 16, 2024
Tangible personal property which is not a machine, mechanism
				  or tool, or a component or fitting thereof, is not "manufacturing equipment"
				  for the purpose of the Alternative Energy Product Manufacturers Tax Credit Act.
				  Accordingly such items as furniture, shelving and supplies are not
				  "manufacturing equipment". Equipment that is neither essential to nor used in
				  conjunction with the manufacturing plant will not qualify for the alternative
				  energy product manufacturers tax credit, even if that equipment is physically
				  located in the plant. Nonqualifying equipment may include, but is not limited
				  to: coffee makers, kitchen equipment used in an employee cafeteria and
				  televisions or radios used in an employee lounge or in a reception
				  area.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.10 - ITEMS WHICH MAY BE INCLUDED AS "MANUFACTURING EQUIPMENT"

Current through Register Vol. 35, No. 13, July 16, 2024
The term "manufacturing operation" is defined as a plant
				  where personnel perform production tasks "in conjunction with equipment not
				  previously existing at the site" to produce alternative energy products.
				  "Manufacturing equipment" must be exclusively and directly employed in the
				  manufacturing process and must be physically located in the plant and used in
				  conjunction with the production of alternative energy products. Therefore,
				  equipment used in conjunction with the production of alternative energy
				  products may include, but is not limited to, such items as manufacturing
				  process equipment, lights, boilers, air conditioners, smoke detectors and other
				  equipment essential to maintaining the proper climate for the manufacturing
				  process, packaging equipment used to put the manufactured product in marketable
				  form, warehousing equipment and computers used to control the manufacturing
				  process or to inventory and schedule the shipping of manufactured
				  products.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.11 - VALUE OF QUALIFIED "MANUFACTURING EQUIPMENT"

Current through Register Vol. 35, No. 13, July 16, 2024
The value of qualified manufacturing equipment shall be the
				  adjusted basis established for the equipment under the applicable provisions of
				  the Internal Revenue Code of 1986.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.12 - APPLICATION OF THE CREDIT

Current through Register Vol. 35, No. 13, July 16, 2024
A. The credit allowed by Section
				7-9J-4
				NMSA 1978 may not be applied against any local option gross receipts tax
				imposed by a county or municipality.
B. The credit may not be applied to a report
				period prior to the report period that includes the first day on which
				qualified expenditures were made for equipment included on the application for
				which the credit was approved by the department.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.13 - CARRY FORWARD OF UNUSED CREDITS

Current through Register Vol. 35, No. 13, July 16, 2024
Unused alternative energy product manufacturers tax credit
				  may be carried forward for five years from the end of the calendar year in
				  which the credit was first approved by the department.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.14 - USING THE CREDIT

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Any amount of alternative energy product manufacturers tax credit claimed and
				approved may be applied by the claimant only against the modified combined tax
				liability owed by the claimant. The credit amount may not be transferred to any
				other person, including an affiliate.
B. Examples:
(1) Corporation T sets up a manufacturing
				operation in New Mexico. T subsequently qualifies for $50,000 in alternative
				energy product manufacturer's tax credit. After applying $13,000 to its own
				modified combined tax liabilities, T creates a subsidiary corporation, S, to
				own and operate all of T's New Mexico business, including the manufacturing
				operation. T may not transfer the $37,000 remaining authorized alternative
				energy product manufacturer's tax credit to S nor may S apply any of the
				remaining tax credit to S's modified combined tax liability. T, to the extent T
				still has modified combined tax obligations, may apply the $37,000 balance
				against those obligations.
(2) When
				two or more corporations merge, the resultant corporation is a continuation of
				any predecessor corporation. When a business organization changes its form, as
				for example from a sole proprietorship to a corporation or from a corporation
				to a limited liability company, so that the resultant entity is a successor in
				business to the predecessor, the resultant entity shall be deemed a
				continuation of the predecessor for alternative energy product manufacturers
				tax credit purposes. In both cases, since there is no transfer, the resultant
				entity may claim any amount of approved but unclaimed alternative energy
				product manufacturers tax credit held by a predecessor.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.15 - EQUIVALENT OF ONE FULL-TIME EMPLOYEE

Current through Register Vol. 35, No. 13, July 16, 2024
To calculate the number of full-time-equivalent employees,
				  add the average weekly hours worked or expected to be worked by all employees
				  whose regular weekly work hours are or are expected to be less than 40 hours.
				  Divide the total by 40 and round down to the nearest whole number. The rounded
				  number plus the number of employees who work or are expected to work an average
				  of 40 or more hours per week is the number of full-time equivalent
				  employees.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 7 - ALTERNATIVE ENERGY PRODUCT MANUFACTURERS TAX CREDIT › Section 3.13.7.16 - REPORTING NUMBER OF EMPLOYEES - ESTIMATES

Current through Register Vol. 35, No. 13, July 16, 2024
To meet the employment requirement, the credit claimant must
				  report the number of full-time-equivalent employees employed on the day the
				  credit is applied for. This number is to be compared with the number of
				  full-time-equivalent employees on the same day in the prior year. Because
				  complete employee data may not be available for the day on which the credit is
				  applied for, a credit claimant may estimate the number of full-time-equivalent
				  employees employed on the day the credit is applied for, provided that the
				  claimant must provide the actual number of full-time-equivalent employees
				  within 45 days from the end of the calendar quarter in which the claim is
				  applied for. The fact that an estimate is used in the claim must be clearly
				  indicated. The department may withhold approval of the claim until the correct
				  number is provided and will deny the claim if the correct number is not
				  provided.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 9 - FILM PRODUCTION TAX CREDIT › Section 3.13.9.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 9 - FILM PRODUCTION TAX CREDIT › Section 3.13.9.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Sections
				  7-2F-1
				  and
				  9-11-6.2
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 9 - FILM PRODUCTION TAX CREDIT › Section 3.13.9.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
9/30/10, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 9 - FILM PRODUCTION TAX CREDIT › Section 3.13.9.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the film production tax
				  credit.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 9 - FILM PRODUCTION TAX CREDIT › Section 3.13.9.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
The terms defined in 3.13.9.7 NMAC apply to the
				  implementation of the film production tax credit.
A. "Direct production expenditures" as
				defined in Subsection C of Section
				7-2F-2 NMSA 1978
				includes only those expenditures directly incurred and paid by the qualified
				production company to the vendor of the services or property and does not
				include expenditures incurred and paid by a third party even if incurred on
				behalf of the qualified production company.
B. "Performing artist" as used in Paragraph
				(1) of Subsection C of Section
				7-2F-2 NMSA 1978
				includes "stunt coordinators" when the stunt coordinator contracts with the
				production company under a standard stunt performer's contract.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 9 - FILM PRODUCTION TAX CREDIT › Section 3.13.9.8 - CLAIMING THE FILM PRODUCTION TAX CREDIT

Current through Register Vol. 35, No. 13, July 16, 2024
A. In order to claim an approved film
				production tax credit, a film production company must complete a timely filed
				tax return after the close of its taxable year.
B. When determining how an approved film
				production tax credit will be paid out pursuant to Subsection E of Section
				7-2F-1
				NMSA 1978, each tax return is equivalent to a single credit claim.
C. Example 1: Two separate film production
				companies elect to be part of a New Mexico consolidated tax return. Each film
				production company submits a separate film production tax credit application
				for approval of direct production expenditures; one application is for two
				million dollars ($2,000,000) and the second for one million dollars
				($1,000,000). The department approves both applications. The total amount of
				three million dollars ($3,000,000) from the two approved applications will be
				considered a single credit claim since the two film production companies elect
				to file as part of a New Mexico consolidated tax return.
D. Example 2: X, a film production company,
				is organized as a corporation who files its income taxes on a calendar year
				basis. For tax year 2012, X will file its corporate income tax return on March
				15, 2013, and claim the approved film production tax credit amount from the
				department. The credit claim will be considered received by the department
				because the taxpayer filed a complete and timely tax return pursuant to the
				Corporate Income and Franchise Tax Act.
E. Example 3: A film production company files
				a complete and timely tax return for a certain tax period. The department does
				not approve the production company's application for the film production tax
				credit until after the production company has filed its tax return. The
				taxpayer ultimately files an amended tax return within three years of the end
				of the calendar year in which the payment of tax was originally due and at that
				time, claims the film production tax credit that was previously approved by the
				department. The credit claim will be considered received because the filing of
				the amended return by the production company was a complete and timely tax
				return pursuant to the Corporate Income and Franchise Tax Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 9 - FILM PRODUCTION TAX CREDIT › Section 3.13.9.9 - DETERMINATION OF PHYSICAL PRESENCE FOR PURPOSES OF CLAIMING THE FILM PRODUCTION TAX CREDIT

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Any vendor (provider) who provides goods or performs services, who occupies and
				maintains one or more physical places of business in New Mexico, not a virtual
				or online business, has established "physical presence," for purposes of the
				film production tax credit, if the following conditions are present:
(1) a provider of goods or services, or its
				employees, or representatives, is available at that provider's place of
				business during established times;
(2) a provider of goods maintains an
				inventory of the goods sold at the provider's New Mexico place of business and
				those goods are held for sale in the vendor's ordinary course of business at
				that place of business; and
(3)
				critical elements of any service performed by a service provider occur, are
				managed at or coordinated from the service provider's place of
				business.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 9 - FILM PRODUCTION TAX CREDIT › Section 3.13.9.10 - QUALIFICATION OF DIRECT PRODUCTION EXPENDITURES

Current through Register Vol. 35, No. 13, July 16, 2024
A. A payment to a personal service business
				for the services of a performing artist qualifies as a direct production
				expenditure if the personal services business:
(1) pays gross receipts tax in New Mexico on
				the portion of those payments that are qualified expenditures for the film
				production tax credit; and
(2)
				deducts and remits withheld income tax pursuant to Subsection I of Section
				7-3A-3
				NMSA 1978 or the film production company deducts and remits, or causes to be
				deducted and remitted, withheld income tax at the maximum rate in New Mexico on
				the portion of those payments qualifying for the film production tax
				credit.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 19 - RENEWABLE ENERGY PRODUCTION TAX CREDIT › Section 3.13.19.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to the application and certification
				  procedures for administration of the renewable energy production tax
				  credit.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 19 - RENEWABLE ENERGY PRODUCTION TAX CREDIT › Section 3.13.19.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
These rules are established under the authority of NMSA 1978,
				  Sections
				  7-2A-19
				  and
				  9-1-5
				  E.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 19 - RENEWABLE ENERGY PRODUCTION TAX CREDIT › Section 3.13.19.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
March 15, 2003 unless a later date is cited at the end of a
				  section.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 19 - RENEWABLE ENERGY PRODUCTION TAX CREDIT › Section 3.13.19.8 - GENERAL PROVISIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Only those taxpayers that meet the requirements of 3.13.19.14 NMAC are eligible
				for a tax credit.
B. A proposed
				project shall meet these required milestones. If a project fails to meet a
				milestone, the division shall reject the application.
(1) Applicant submits a complete renewable
				energy production tax credit application package to the division.
(2) Construction of a qualified energy
				generator shall commence within 12 months of the application's approval. The
				applicant shall meet this requirement by entering into a construction contract
				and by the placement of a permanent, physical part of the facility, such as a
				poured concrete foundation. Applicant shall submit to the division a copy of
				the contract accompanied by a letter certifying that such construction has
				occurred.
(3) A qualified energy
				generator shall generate electrical power and achieve commercial operation,
				demonstrating at least 10 megawatts generating capacity, within 24 months of
				the division's approval of the application.
(4) Within 24 months of the application's
				approval, the applicant shall submit to the division:
(a) the name of the qualified energy
				generator;
(b) electric output
				meter readings documenting commercial operation and indicating at least 10
				megawatts output;
(c) a copy of the
				bill of sale or other documentation sufficient to evidence a sale of the power
				indicating the amount of electrical energy produced, precise time period of
				production, and the name of the buyer of the electricity; and
(d) records to verify that the applicant is
				selling to unrelated persons.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 19 - RENEWABLE ENERGY PRODUCTION TAX CREDIT › Section 3.13.19.9 - APPLICATION

Current through Register Vol. 35, No. 13, July 16, 2024
A. A renewable
				energy production tax credit application form can be obtained from the
				division.
B. An applicant shall
				submit an application package to the division.
C. The application package shall consist of a
				completed renewable energy production tax credit application form, with the
				following required attachments:
(1) a copy of
				the land rights agreement;
(2) a
				copy of the interconnection agreement or a system impact study agreement
				between the applicant and the interconnect utility, or its functional
				equivalent; and
(3) a copy of the
				power purchase agreement, project finance agreement, or evidence of
				self-financing.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 13 - BUSINESS TAX CREDITS › Part 19 - RENEWABLE ENERGY PRODUCTION TAX CREDIT › Section 3.13.19.10 - APPLICATION REVIEW PROCESS

Current through Register Vol. 35, No. 13, July 16, 2024
A. The division shall consider applications
				in the order received, according to the day it receives them, but not the time
				of day. The division shall give applications it receives on the same day equal
				consideration. If the division approves applications it received on the same
				day and they would exceed the overall limit of tax credit availability, then
				the division shall divide the available credit among those applications on a
				prorated, per megawatt-hour basis.
B. The division shall approve or reject an
				application within 30 days following its receipt of the application package, or
				if the division requires more time it shall notify the applicant of the reason
				and shall approve or reject the application as soon as possible.
C. The division shall review the application
				package to determine if the proposed generator will be a qualified energy
				generator and if the requisite documentation specified in Subsection C of
				3.13.19.9 NMAC, above, is valid.
D.
				The division shall check the accuracy of the applicant's estimated annual
				production potential and make any necessary adjustments to ensure the potential
				is reasonably achievable. The limit of the qualified energy generator's energy
				production eligible for the tax credit for the taxable year shall be the lesser
				of: the estimate the division approves, or 400,000 megawatt-hours, or the
				eligible electricity remaining of the 2,000,000 megawatt-hours total for the
				state.
E. If the division finds
				that the application package meets the required criteria and tax credit is
				available, the division shall approve the application. The division shall
				approve the application by issuing a letter to the applicant, which shall
				include the limit of the qualified energy generator's annual production
				eligible for the tax credit.
F. The
				division shall reject an application that is not complete or correct, does not
				meet the criteria for approval or fails to meet a required milestone. The
				division's rejection letter shall state the reasons why it rejected the
				application. The applicant may resubmit the application package for the
				rejected project. The division shall place the resubmitted application in the
				review schedule as if it were a new project.