SENATE BILL 572
54th legislature - STATE OF NEW MEXICO - first session, 2019
Carlos R. Cisneros
RELATING TO TAXATION; CREATING THE TECHNOLOGY READINESS GROSS RECEIPTS TAX CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] TECHNOLOGY READINESS GROSS RECEIPTS TAX CREDIT.--
A. Prior to July 1, 2030, a taxpayer that is a national laboratory that provides technology readiness assistance to a business that is registered to do business in New Mexico and has licensed a technology from the national laboratory or is a participant in a cooperative research and development agreement with the national laboratory may apply to the department for a tax credit against the taxpayer's gross receipts tax liability imposed pursuant to the Gross Receipts and Compensating Tax Act, excluding any local option gross receipts tax liability. The tax credit provided by this section may be referred to as the "technology readiness gross receipts tax credit".
B. The purpose of the technology readiness gross receipts tax credit is to help promote technology maturation of technologies developed at New Mexico national laboratories and licensed to New Mexico companies in order to boost technology commercialization and increase economic development in the state.
C. A taxpayer shall not claim both a technology readiness gross receipts tax credit and a credit pursuant to the Laboratory Partnership with Small Business Tax Credit Act for any assistance provided to the same business in the same taxable year.
D. Subject to the limitation pursuant to Subsection E of this section, the amount of a technology readiness gross receipts tax credit shall equal the amount of qualified expenditures incurred by a national laboratory to provide technology readiness assistance to a business, not to exceed two hundred fifty thousand dollars ($250,000) for technology that reaches technology maturation.
E. The department shall allow up to a maximum annual amount of two million five hundred thousand dollars ($2,500,000) of technology readiness gross receipts tax credits per national laboratory.
F. To be eligible for a technology readiness gross receipts tax credit, a taxpayer shall apply for a certificate of eligibility from the economic development department on forms and in the manner required by that department. The application shall include the following:
(1) certification from the business that received the technology readiness assistance that:
(a) the assistance resulted in the technology maturation for the technology for which the business received the assistance; and
(b) the assistance provided was not otherwise available to the business at a reasonable cost through private industry;
(2) evidence that the business that received the technology readiness assistance is registered to do business in New Mexico;
(3) evidence that the technology for which the technology readiness assistance was performed is a licensed technology from the national laboratory or a result of a cooperative research and development agreement with the national laboratory;
(4) evidence of technology maturation of the technology for which the business received technology readiness assistance; and
(5) a joint operational plan, if required pursuant to Subsection H of this section.
G. In addition to the requirements in Subsection F of this section, a national laboratory shall:
(1) create forms for technology readiness assistance requests and completion of technology maturation in accordance with this section and other applicable state and federal laws;
(2) establish a technology readiness assistance program that will assist businesses to mature a technology;
(3) establish a revolving fund with initial funding from a source other than tax credits, which shall be used to pay for technology readiness assistance, and shall be replenished with an amount equal to the technology readiness gross receipts tax credit taken pursuant to this section;
(4) consult with the secretary of economic development to seek advice on improvements in the operation of its technology readiness assistance program; and
(5) establish a methodology to use state educational institutions that have demonstrated the capability to provide technology readiness assistance.
H. If more than one national laboratory provides technology readiness assistance to a business, the national laboratories shall not file to claim a technology readiness gross receipts tax credit until coordination is developed between the national laboratories providing the assistance that generates a joint operational plan to ensure that:
(1) the assistance provided by each national laboratory suits the business's needs and challenges; and
(2) the combined claims for a technology readiness gross receipts tax credit will not exceed the limitations provided in Subsections D and E of this section.
I. If the requirements of Subsections F and G of this section have been met, the economic development department shall issue a certificate of eligibility to the taxpayer.
J. To claim a technology readiness gross receipts tax credit, a taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include the certificate of eligibility issued pursuant to Subsection I of this section. That portion of a technology readiness gross receipts tax credit that exceeds a taxpayer's tax liability in the taxable month in which the credit is claimed may be carried forward to succeeding months.
K. Should the revolving fund required pursuant to Paragraph (3) of Subsection G of this section cease to be used for the purposes stated in that subsection, any amounts remaining in the revolving fund, excluding initial funding from non-tax credit sources, shall be paid to the department as gross receipts taxes due. Such payment of gross receipts taxes due shall be made in the second month following the month that a determination is made that the revolving fund has ceased to be used for the purposes stated in this section.
L. A national laboratory that claims a technology readiness gross receipts tax credit shall submit an annual report in writing to the department, the economic development department and an appropriate legislative interim committee. If more than one national laboratory claims a technology readiness gross receipts tax credit, those laboratories shall jointly submit an annual report. The annual report shall summarize activities related to and the results of the technology readiness assistance programs created by the national laboratories and shall include:
(1) a summary of program results;
(2) a description of the projects that received technology readiness assistance;
(3) results of surveys of businesses to which technology readiness assistance is provided;
(4) the total amount of the technology readiness gross receipts tax credits claimed for the year; and
(5) an economic impact study.
M. At any time after receipt of an annual report required pursuant to this section, the department or the economic development department may provide written instructions to a national laboratory identifying future improvements in the national laboratory's technology readiness assistance program for which it receives a technology readiness gross receipts tax credit.
N. As used in this section:
(1) "cooperative research and development agreement" means any agreement between a national laboratory and a non-federal party under which the laboratory provides personnel, services, facilities, equipment, intellectual property or other resources and a non-federal party provides funds, personnel, services, facilities, equipment, intellectual property or other resources toward the conduct of specified research or development efforts that are consistent with the missions of the laboratory;
(2) "national laboratory" means a prime contractor designated as a national laboratory by act of congress that is operating a facility in New Mexico;
(3) "qualified expenditure" means an expenditure by a national laboratory in providing technology readiness assistance and is limited to the following:
(a) employee salaries, wages, benefits and employer payroll taxes;
(b) administrative costs related directly to the provision of technology readiness assistance;
(c) in-state travel expenses, including per diem and mileage at the internal revenue service standard rate; and
(d) supplies and services of contractors that are related to the provision of technology readiness assistance;
(4) "state educational institution" means a state educational institution named in Article 12, Section 11 of the constitution of New Mexico;
(5) "technology maturation" means technology
that has been developed to a stage that results in a prototype or demonstration of the feasibility of real-world application of the technology; and
(6) "technology readiness assistance" means assistance provided by a national laboratory to a business that results in technology maturation."
SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2019
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