HB 255 — TECHNOLOGY READINESS GROSS RECEIPTS CREDIT

HOUSE BILL 255 54TH LEGISLATURE - STATEOFNEWMEXICO- SECOND SESSION , 2020 INTRODUCED BY Abbas Akhil and Christine Chandler and Joseph L.

Sanchez and Jason C.

Harper This document incorporates amendments that have been adopted during the current legislative session.

The document is a tool to show the amendments in context and is not to be used for the purpose of amendments.

CREATING THE TECHNOLOGY READINESS h GROSS RECEIPTS TAX CREDIT FUND;

MAKING A DISTRIBUTION TO THE g o TECHNOLOGY READINESS GROSS RECEIPTS TAX CREDIT FUND;

PROVIDING t hr g e i k A DELAYED REPEAL.

h8 r i s h , t, BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

e u g e b l e e h SECTION 1.

A new section of the Gross Receipts and n d d i = = o h Compensating Tax Act is enacted to read:

l"TECHNOLOGY ] b ,d i a º e "[NEW MATERIAL ] TECHNOLOGY READINESS GROSS RECEIPTS TAX r i = r t e w d m a n o CREDIT--TECHNOLOGY READINESS GROSS RECEIPTS TAX CREDIT FUND.-- dA. m :

bFor etaxable dperiods sbeginning ºJuly o1, t2020 nand =prior .215842.3AICto FebruaryJuly 6,1, 20202023, (1:55pm)a staxpayer kthat mis ea enational laboratory that provides technology readiness assistance to a nbusiness ethat dis rregistered eto ldo ubusiness [in ANew dMexico A.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 claim 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.

For taxable periods beginning July 1, 2020 and prior to July 1, HCEDCº2025»HCEDC HCEDCº2023»HCEDC, 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 claim 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.

HB 255/a Page 1 B.

The purpose of the technology readiness gross receipts tax credit is to help businesses in New Mexico achieve technology maturation of the businesses' technologies developed h at New Mexico national laboratories and increase economic u » r development in the state.

t h g e l i C.

The "technology readiness gross receipts tax h r i s credit fund" is created in the state treasury.

The department h , e h shall administer the fund, and money in the fund shall be used t u g e b l e e , gh to offset technology readiness gross receipts tax credits;

n d d i = = o h provided that money in the fund is subject to appropriation by l ] b ,d i a º r the legislature for any purpose.

Technology readiness gross e r = t e w d m a n o receipts tax credits shall not be credited against any other dfund. m :

b r e t º o t n = .215842.3AIC February 6, 2020 (1:55pm) s k m e - 2 - e a n e d r e l u [ A d fund.

Money in the fund shall revert to the general fund at the end of fiscal year HCEDCº2024. 2026»HCEDC HCEDCº2024»HCEDC.

Subject to the availability of funds in the technology readiness gross receipts tax credit fund, 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 HB 255/a Page 2 assistance to a business, not to exceed one hundred fifty thousand dollars ($150,000) in a fiscal year per business;

provided that the annual aggregate amount of credits allowed per national h laboratory per fiscal year shall be limited as follows:

g o t hr (1) beginning July 1, 2020 and prior to July g e i k 1, 2021, five hundred thousand dollars ($500,000);

h r i s (2) beginning July 1, 2021 and prior to July h , t, 1, 2022, seven hundred fifty thousand dollars ($750,000);

eand u g e b l e e h HCEDCº and»HCEDC n d d i = = o h (3) beginning July 1, 2022 and prior to July l ] b ,d i a º e 1, HCEDCº2023, 2024»HCEDC HCEDCº2023»HCEDC, one million dollars r($1,000,000). i = r t e w d m a n o ($1,000,000) HCEDCº;

and»HCEDCE. HCEDCº.»HCEDC d m :

b e d s º o t n = .215842.3AIC February 6, 2020 (1:55pm) s k m e - 3 - e a n e d r e l u [ A d HCEDCº(4) beginning July 1, 2024 and prior to July 1, 2025, one million five hundred thousand dollars ($1,500,000).»HCEDC E.

h (a) the assistance was made in good gHB o255/a tPage hr3 faith to help the business demonstrate the feasibility of real-real-world g e i k world application of the business's technology;

and h r i s (b) the assistance was not otherwise h , t, e u g available to the business at a reasonable cost through private e b l e e h industry;

n d d i = = o h (2) evidence that the business that received l ] b ,d i a º e the technology readiness assistance is registered to do r i = r t e w d m a n o business in New Mexico;

and d(3) mevidence :that the business's technology is a licensed technology from the national laboratory or the business is a participant in a cooperative research and development agreement with the national laboratory.

b e d s º o t n = .215842.3AIC February 6, 2020 (1:55pm) s k m e - 4 - e a n e d r e l u [ A d (3) evidence that the business's technology is a licensed technology from the national laboratory or the business is a participant in a cooperative research and development agreement with the national laboratory.

and (4) establish a methodology to use state educational institutions that have demonstrated the capability h to provide technology readiness assistance.

gHB o255/a tPage hr4 H.

A taxpayer shall not claim both a technology g e i k readiness gross receipts tax credit and a credit pursuant to h r i s the Laboratory Partnership with Small Business Tax Credit Act h , t, for assistance provided to the same business in the same e u g e b l e e h taxable period.

n d d i = = o h I.

If more than one national laboratory provides l ] b ,d i a º e technology readiness assistance to a business, the national rlaboratories ishall =not rclaim ta etechnology wreadiness dgross mreceipts atax ncredit ountil coordination is developed between the national laboratories shallproviding notthe claimassistance that generates a technologyjoint readinessoperational grossplan dto mensure :that:

b e d s º o t n = .215842.3AIC February 6, 2020 (1:55pm) s k m e - 5 - e a n e d r e l u [ A d receipts tax credit until coordination is developed between the national laboratories providing the assistance that generates a joint operational plan to ensure that: