A. The investment credit provided for in the Investment Credit Act may be claimed by a taxpayer carrying on a manufacturing operation in New Mexico in an amount equal to:
(1) the product of the sum of the compensating tax rate and, beginning July 1, 2021, any municipal or county compensating tax rate multiplied by the value of the qualified equipment; or
(2) if the sale is subject to the gross receipts tax, the product of the sum of the gross receipts tax rate and, beginning July 1, 2021, any municipal or county local option gross receipts tax rates multiplied by the seller's gross receipts from the sale of the qualified equipment.
B. If the purchase or the introduction into New Mexico of the qualified equipment is not subject to the gross receipts tax or compensating tax, the rate to determine the amount of the credit shall be equal to a rate of five and one-eighth percent.
History: Laws 1979, ch. 347, § 5; 1983, ch. 206, § 3; 1990, ch. 3, § 2; 1991, ch. 159, § 4; 1991, ch. 162, § 4; 2020, ch. 80, § 7.
ANNOTATIONSCompiler's notes. — Laws 1991, ch. 159, § 8 and Laws 1991, ch. 162, § 8, effective June 14, 1991, repealed 7-9A-5 NMSA 1978, as enacted by Laws 1990, ch. 3, § 3, which was to become effective on January 1, 1994.
The 2020 amendment, effective July 1, 2020, included a calculation for the investment credit if the sale of qualified equipment for which the credit is allowed is subject to the gross receipts tax and if the qualified equipment is not subject to the gross receipts tax or the compensating tax; in Subsection A, in the introductory clause, after "Investment Credit Act", deleted "is an" and added "may be claimed by a taxpayer carrying on a manufacturing operation in New Mexico in an", after "amount equal to", deleted "the percent of", in Paragraph A(1), after the first occurrence of "the", added "product of the sum of the", after "compensating tax rate", deleted "provided for in the Gross Receipts and Compensating Tax Act applied to" and added "and, beginning July 1, 2021, any municipal or county compensating tax rate multiplied by", and after "qualified equipment", deleted "and may be claimed by the taxpayer carrying on a manufacturing operation in New Mexico", and added Paragraph A(2); and added Subsection B.
The 1991 amendment, effective June 14, 1991, deleted former Subsections B and C, relating to limitations on claims for investment credit, and made a related stylistic change. Laws 1991, ch. 159, § 4 enacted identical amendments to this section. The section was set out as amended by Laws 1991, ch. 162, § 4. See 12-1-8 NMSA 1978.