SB 172 — TECHNOLOGY READINESS GRT CREDIT

SENATE TAX, BUSINESS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR SENATE BILL 172 57TH LEGISLATURE --STATEOFNEWMEXICO- STATEOFNEWMEXICO- SECOND SESSION , 2026 INTRODUCED4 BY6 Roberto8 "Bobby"10 J.AN ACT RELATING TO TAXATION;

Gonzales and Michael Padilla and Leo Jaramillo 7 9 AN ACT RELATING TO TAXATION;

TECHNOLOGY READINESS GROSS RECEIPTS TAX w l n d 18 CREDIT.-- = = 19 a l A.

Prior to July 1, [2027[2027] ]2036, 2035, a taxpayer that is a l i a e r 20 a national laboratory that provides technology readiness a t m m 21 assistance to a business that is registered to do business in d r e 22 New Mexico and has licensed a technology from the national c e s k 23 laboratory or is a participant in a cooperative research and e a n b 24 development agreement with the national laboratory may claim a u [ tax credit against the taxpayer's gross receipts tax liability .233137.1.233851.1 STBTC/SB 172 imposed pursuant to the Gross Receipts and Compensating Tax Act, excluding any local option gross receipts tax liability.

provided that the annual aggregate amount of credits allowed per national laboratory per fiscal year shall e et 17 be limited to [one million dollars ($1,000,000)($1,000,000)]: ]:

ew el n d 18 (1) beginning on July 1, 20262027 and prior to = = l ] 19 July 1, 2027,2028, two million dollars ($2,000,000);

a l r i a e r 20 (2) beginning on July 1, 20272028 and prior to a t em am t21 July 1, 2028,2029, three million dollars ($3,000,000);

m m 21 e d r e 22 (3) beginning on July 1, 20282029 and prior to c e rs ck 23 July 1, 2029,2030, four million dollars ($4,000,000);

and e a n b 24 (4) beginning on July 1, 20292030 and prior to u [ July 1, 2035,2036, five million dollars ($5,000,000).

.233137.1.233851.1 - 2 - STBTC/SB 172 D.

and e et 17 (b) the assistance was not otherwise ew el n d 18 available to the business at a reasonable cost through private = = l ] 19 industry;

a l r i a e r 20 (2) evidence that the business that received a t em am t21 the technology readiness assistance is registered to do m m 21 e d r e 22 business in New Mexico;

and c e rs ck 23 (3) evidence that the business's technology is e a n b 24 a licensed technology from the national laboratory or the u [ business is a participant in a cooperative research and .233137.1.233851.1 - 3 - STBTC/SB 172 development agreement with the national laboratory.

A taxpayer shall not claim both a technology readiness gross receipts tax credit and a credit pursuant to e et 17 the Laboratory Partnership with Small Business Tax Credit Act ew el n d 18 for assistance provided to the same business in the same = = l ] 19 taxable period.

a l r i a e r 20 H.

If more than one national laboratory provides a t em am t21 technology readiness assistance to a business, the national m m 21 e d r e 22 laboratories shall not claim a technology readiness gross c e rs ck 23 receipts tax credit until coordination is developed between the e a n b 24 national laboratories providing the assistance that generates a u [ joint operational plan to ensure that:

.233137.1.233851.1 - 4 - STBTC/SB 172 (1) the assistance provided by each national laboratory suits the business's needs and challenges;

(1) a description of each business's e et 17 technology that has received technology readiness assistance, ew el n d 18 including progress toward technology maturation and whether, = = l ] 19 and to what extent, the business is still doing business in New a l r i a e r 20 Mexico;

a t em am t21 (2) results of surveys of businesses to which m m 21 e d r e 22 technology readiness assistance is provided;

c e rs ck 23 (3) the total amount of the technology e a n b 24 readiness gross receipts tax credits received in the previous u [ fiscal year;

and .233137.1.233851.1 - 5 - STBTC/SB 172 (4) an economic impact study performed by an uninterested third party.

(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 e et 17 property or other resources toward the conduct of specified ew el n d 18 research or development efforts that are consistent with the = = l ] 19 missions of the laboratory;

a l r i a e r 20 (2) "national laboratory" means a prime a t em am t21 contractor designated as a national laboratory by act of m m 21 e d r e 22 congress that is operating a facility in New Mexico;

c e rs ck 23 (3) "qualified expenditure" means an e a n b 24 expenditure by a national laboratory in providing technology u [ readiness assistance and is limited to the following:

.233137.1.233851.1 - 6 - STBTC/SB 172 (a) employee salaries, wages, benefits and employer payroll taxes;

(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 e et 17 of the technology;

and ew el n d 18 (6) "technology readiness assistance" means = = l ] 19 assistance provided to a business by a national laboratory with a l r i a e r 20 the intent to help the business's technology achieve technology t e a t maturation." m m 21 ematuration." d r e 22 SECTION 2.

EFFECTIVE DATE.--The effective date of the c e rs ck 23 provisions of this act is July 1, 2026.2027.

e a n b 24 - 7 - u [ .233137.1.233851.1