A. A taxpayer shall apply for approval for a credit within one year following the end of the calendar year in which the qualified equipment for the manufacturing operation is purchased or introduced into New Mexico.
B. A taxpayer having applied for and been granted approval for a credit by the department pursuant to the Investment Credit Act may claim an amount of available credit against the taxpayer's tax liabilities; provided that the credit shall be claimed against the taxpayer's tax liabilities pursuant to the Gross Receipts and Compensating Tax Act [Chapter 7, Article 9 NMSA 1978], the Municipal Local Option Gross Receipts and Compensating Taxes Act [Chapter 7, Article 19D NMSA 1978] and the County Local Option Gross Receipts and Compensating Taxes Act [Chapter 7, Article 20E NMSA 1978] before being claimed against the taxpayer's tax liabilities pursuant to the Withholding Tax Act [Chapter 7, Article 3 NMSA 1978]; provided further that no taxpayer may claim, except as provided in Subsection C of this section, an amount of available credit for any reporting period that exceeds eighty-five percent of the sum of the taxpayer's tax liabilities for that reporting period. Any amount of available credit not claimed against the taxpayer's tax liabilities for a reporting period may be claimed in subsequent reporting periods.
C. A taxpayer may apply by September 30 of the current calendar year for a refund of the unclaimed balance of the available credit up to a maximum of two hundred fifty thousand dollars ($250,000) if on January 1 of the current calendar year:
(1) the taxpayer's available credit is less than five hundred thousand dollars ($500,000); and
(2) the sum of the taxpayer's tax liabilities for the previous calendar year was less than thirty-five percent of the taxpayer's available credit but more than ten thousand dollars ($10,000).
D. As used in this section, "tax liabilities" means any tax liability a taxpayer incurs pursuant to the Withholding Tax Act, the Gross Receipts and Compensating Tax Act, the Municipal Local Option Gross Receipts and Compensating Taxes Act or the County Local Option Gross Receipts and Compensating Taxes Act.
History: Laws 1979, ch. 347, § 8; 1983, ch. 206, § 7; 1988, ch. 123, § 1; 1990, ch. 3, § 9; 1997, ch. 62, § 1; 2000, ch. 45, § 1; 2020, ch. 80, § 10.
ANNOTATIONSCross references. — For withholding tax, see 7-3-1 NMSA 1978 et seq.
For gross receipts tax, see 7-9-1 NMSA 1978 et seq.
The 2020 amendment, effective July 1, 2020, provided that the investment credit will be claimed against a taxpayer's state and local tax liabilities; in Subsection B, after "available credit against the taxpayer's", deleted "compensating tax, gross receipts tax or withholding tax due to the state of New Mexico" and added "tax liabilities", after "provided that", added "the credit shall be claimed against the taxpayer's tax liabilities pursuant to the Gross Receipts and Compensating Tax Act, the Municipal Local Option Gross Receipts and Compensating Taxes Act and the County Local Option Gross Receipts and Compensating Taxes Act before being claimed against the taxpayer's tax liabilities pursuant to the Withholding Tax Act; provided further that", after "sum of the taxpayer's", deleted "gross receipts tax, compensating tax and withholding", after the next occurrence of "tax", deleted "due" and added "liabilities", after "not claimed against the taxpayer's", deleted "gross receipts tax, compensating tax or withholding", and after the next occurrence of "tax", deleted "due" and added "liabilities"; in Subsection C, Paragraph C(2), after "sum of the taxpayer's", deleted "gross receipts tax, compensating tax and withholding", and after the next occurrence of "tax", deleted "due" and added "liabilities"; and added Subsection D.
The 2000 amendment, effective May 17, 2000, inserted "except as provided in Subsection C of this section" in the first sentence of Subsection B and added Subsection C.
The 1997 amendment, effective June 20, 1997, redesignated the second sentence in Subsection A as the first sentence of Subsection B and rewrote the remainder of Subsection B.
The 1990 amendment, effective January 1, 1991, in the first sentence in Subsection A, substituted "following the end of the calendar year" for "after" and added "into New Mexico" at the end and rewrote Subsection B which read "A taxpayer having applied for and been granted approval for an investment credit pursuant to the Investment Credit Act may claim a refund in an amount equal to the investment credit upon evidence satisfactory to the secretary of taxation and revenue that the taxpayer has paid an element of the price denominated a gross receipts tax on the qualified equipment for which a claim for refund is made."
No offset for prior years investment credits. — A taxpayer was not entitled to an offset in the amount it owed for compensating taxes for investment credits it had made in previous years, because it had not claimed the credits within the one-year statute of limitations period. Although the taxpayer argued that it was entitled to an offset under the doctrine of equitable recoupment, a taxpayer is not entitled to seek a credit after the statute-of-limitations period has expired unless the state is imposing a tax on the same taxable event on a ground that is inconsistent with the original payment by the taxpayer. Vivigen, Inc. v. Minzner, 1994-NMCA-027, 117 N.M. 224, 870 P.2d 1382.