HB 98 — OMNIBUS TAX BILL

n d d i = = o h H.

No one factor contemplated to Subsection G of l ] b ,d i a º e this section shall be considered determinative in considering r i = r t e w d whether tax collection from a spouse would be inequitable.

mEach afactor nmay obe dgiven mdifferent :relative weight, depending on the facts and circumstances presented;

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 8 - e a n e d r e l u [ A d Each factor may be given different relative weight, depending on the facts and circumstances presented;

[C.] I.

(1) "innocent spouse relief" means the HTRC/HB 98/a Page 8 relief from collection of tax liabilities pursuant to this section;

h "7-1-36.

PROPERTY EXEMPT FROM LEVY.-- g o A.

There shall be exempt from levy the money or t hr g e i k property of a delinquent taxpayer in a total amount or value h r i s not in excess of one thousand dollars ($1,000).

h , t, B.

In addition to the property exempt under e u g e b l Subsection A of this section, there shall also be exempt from e e h n d d i = = o h levy on an employer of the taxpayer the greater of the l ] b ,d i a º e following portions of the taxpayer's disposable earnings:

r i = r t e w d (1) seventy-five percent of the taxpayer's mdisposable aearnings nfor oany dpay mperiod; :

bor e(2) dan samount ºeach oweek tequal nto =forty .219419.2AICtimes Februarythe 15,minimum 2021wage (3:58pm)rate spursuant kto mSubsection e - 9 - e a n e d r e l u [ A dof HTRC/HBSection 9850-4-22 disposableNMSA earnings1978. for any pay period;

orThe (2)superintendent anof amountregulation eachand weeklicensing equalshall toprovide fortya timestable thegiving [federalequivalent ]exemptions minimumfor [hourly]pay wageperiods rate pursuant to Subsection A of Sectionother 50-4-22than NMSAone 1978.week.

The superintendent of [the] regulation and licensing [department ] shall provide a table giving equivalent exemptions for pay periods of other than one week.

As used in this section, [(1)] "disposable earnings" HTRC/HB 98/a Page 9 means that part of a taxpayer's wages or salary remaining after deducting the amounts that are required by law to be withheldwithheld." [andSECTION (2)5. "federal minimum hourly wage" means the current highest federal minimum hourly wage rate for an eight- hour day and a forty-hour week.

ItSection is7-1-69 immaterialNMSA whether1978 the(being employerLaws is1965, exemptChapter under248, federalSection law70, fromas payingamended) theis federalamended minimumto hourlyread: wage rate]." h SECTION 5.

Section"7-1-69. 7-1-69 NMSA 1978 (being Laws 1965, g o Chapter 248, Section 70, as amended) is amended to read:

tCIVIL hrPENALTY gFOR eFAILURE iTO kPAY "7-1-69.TAX OR FILE A RETURN.-- A.

CIVILExcept PENALTYas FORprovided FAILUREin TOSubsection PAYC TAXof ORthis FILEsection, Ain hthe rcase iof sfailure RETURN.--due hto ,negligence t,or A.disregard of department rules and regulations, but without intent to evade or defeat a tax, to pay when due the amount of tax required to be paid, to pay in accordance with the provisions of Section 7-1-13.1 NMSA 1978 when required to do so or to file by the date required a return regardless of whether a tax is due, there shall be added to the amount assessed a penalty in an amount equal to the greater of:

Except as provided in Subsection C of this e u g e b l e e h section, in the case of failure due to negligence or disregard n d d i = = o h of department rules and regulations, but without intent to l ] b ,d i a º e evade or defeat a tax, to pay when due the amount of tax r i = r t e w d m a n o required to be paid, to pay in accordance with the provisions d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 10 - e a n e d r e l u [ A d of Section 7-1-13.1 NMSA 1978 when required to do so or to file by the date required a return regardless of whether a tax is due, there shall be added to the amount assessed a penalty in an amount equal to the greater of:

or HTRC/HB 98/a Page 10 (3) a minimum of five dollars ($5.00), but the five-dollar ($5.00) minimum penalty shall not apply to taxes levied under the Income Tax Act, Corporate Income and Franchise Tax Act or taxes administered by the department pursuant to Subsection B of Section 7-1-2 NMSA 1978.

No penalty shall be assessed against a taxpayer h if the failure to pay an amount of tax when due results from a g o mistake of law made in good faith and on reasonable grounds.

t hr g e i k C.

If a different penalty is specified in a compact h r i s or other interstate agreement to which New Mexico is a party, h , t, the penalty provided in the compact or other interstate e u g e b l agreement shall be applied to amounts due under the compact or e e h n d d i = = o h other interstate agreement at the rate and in the manner l ] b ,d i a º e prescribed by the compact or other interstate agreement.

r i = r t e w d D.

In the case of failure, with willful intent to mevade or defeat a ntax, oto dpay mwhen :due the amount of tax required to be paid, there shall be added to the amount fifty percent of the tax or a minimum of twenty-five dollars ($25.00), whichever is greater, as penalty.

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 11 - e a n e d r e l u [ A d HTRC/HB 98 evade or defeat a tax, to pay when due the amount of tax required to be paid, there shall be added to the amount fifty percent of the tax or a minimum of twenty-five dollars ($25.00), whichever is greater, as penalty.

If demand is made for payment of a tax, including penalty imposed pursuant to this section, and if the tax is paid within ten days after the date of such demand, no penalty shall be imposed for the period after the HTRC/HB 98/a Page 11 date of the demand with respect to the amount paid.

If a taxpayer makes electronic payment of a tax but the payment does not include all of the information required by the department pursuant to the provisions of Section 7-1-13.1 NMSA 1978 and if the department does not receive the required information within five business days from the later of the date a request by the department for that information is received by the taxpayer or the due date, the h taxpayer shall be subject to a penalty of two percent per month u » r or any fraction of a month from the fifth day following the t h g e date the request is received.

If a penalty is imposed under l i h r i s Subsection A of this section with respect to the same h , e h transaction for the same period, no penalty shall be imposed t u g e b l under this subsection.

e e , gh n d d i = = o h G.

l ] b ,d i a º r (1) tax due in excess of tax paid in e r = t e w d accordance with an approved estimated basis pursuant to Section m7-1-10 aNMSA n1978; o d m :

b r e t º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 12 - e a n e d r e l u [ A d 7-1-10 NMSA 1978;

or (3) tax that is deemed paid by crediting overpayments found in an audit or managed audit of multiple periods pursuant to Section 7-1-29 NMSA 1978." Hfl1ºSECTIONSECTION 6.

HTRC/HB 98/a Page 12 "7-2-18.18.

(1) holds title to a qualified energy h generator that first produced electricity on or before January g o t hr 1, 2018;

or g e i k (2) leases property upon which a qualified h r i s energy generator operates from a county or municipality under h , t, e u g authority of an industrial revenue bond and if the qualified e b l e e h energy generator first produced electricity on or before n d d i = = o h January 1, 2018.

l ] b ,d i a º e r i = r C.

The amount of the tax credit shall equal one t e w d m a n o cent ($.01) per kilowatt-hour of the first four hundred dthousand mmegawatt-hours :of electricity produced by the qualified energy generator in the taxable year using a wind- or biomass-derived qualified energy resource;

bprovided ethat dthe stotal ºamount oof ttax ncredits =claimed .219419.2AICby Februaryall 15,taxpayers 2021for (3:58pm)HTRC/HB s98/a kPage m13 ea -single 13qualified -energy egenerator using a nwind- eor dbiomass-derived rqualified eenergy lresource ushall [not Aexceed done HTRC/HBcent 98($.01) per kilowatt-hour of the first four hundred thousand megawatt-hours of electricity produced by the qualified energy generator in thea taxable yearyear. using a wind- or biomass-derived qualified energy resource;

provided that the total amount of tax credits claimed by all taxpayers for a single qualified energy generator [in a taxable year] using a wind- or biomass-derived qualified energy resource shall not exceed one cent ($.01) per kilowatt-hour of the first four hundred thousand megawatt-hours of electricity produced by the qualified energy generator in a taxable year.

The amount of the tax credit for electricity produced by a qualified energy generator in the taxable year using a solar-light-derived or solar-heat-derived qualified energy resource shall be at the amounts specified in Paragraphs (1) through [(10)] (11) of this subsection;

provided that the total amount of tax credits claimed [for a taxable year] by all taxpayers in a taxable year for a single qualified energy h generator using a solar-light-derived or solar-heat-derived u » r t h qualified energy resource shall be limited to the first two g e l i hundred thousand megawatt-hours of electricity produced by the h r i s qualified energy generator in the taxable year:

h , e h t u g (1) one and one-half cents ($.015) per e b l e e , gh kilowatt-hour in the first taxable year in which the qualified n d d i = = o h energy generator produces electricity using a solar-light-solar-light-derived l ] b ,d i a º r e r = derived or solar-heat-derived qualified energy resource;

t e w d m a n o (2) two cents ($.02) per kilowatt-hour in the dsecond mtaxable :year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;

bHTRC/HB r98/a ePage t º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 14 -(3) etwo aand none-half ecents d($.025) rper ekilowatt-hour lin uthe [third A d second taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-solar-heat-derived derived qualified energy resource;

(3)(4) twothree and one-half cents ($.025)($.03) per kilowatt-hour in the thirdfourth taxable year in which the qualified energy generator produces electricity using a solar-light-solar-light-derived derived or solar-heat-derived qualified energy resource;

(4)(5) three and one-half cents ($.03)($.035) per kilowatt-hour in the fourthfifth taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-solar-heat-derived derived qualified energy resource;

(5)(6) threefour and one-half cents ($.035)($.04) per kilowatt-hour in the fifthsixth taxable year in which the qualified energy generator produces electricity using a solar-light-solar-light-derived derived or solar-heat-derived qualified energy resource;

(6)(7) fourthree and one-half cents ($.04)($.035) per kilowatt-hour in the sixthseventh taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-solar-heat-derived derived qualified energy resource;

h(8) g (7) three and one-half cents ($.035)($.03) per o t hr kilowatt-hour in the seventheighth taxable year in which the gqualified eenergy iHTRC/HB k98/a qualifiedPage energy15 generator produces electricity using a solar-solar-light-derived h r i s h light-derived or solar-heat-derived qualified energy resource;

,(9) t,two eand uone-half g (8) three cents ($.03)($.025) per kilowatt-hour in e b l e e h the eighthninth taxable year in which the qualified energy generator n d d i = = o h produces electricity using a solar-light-derived or solar-heat-solar-heat-derived l ] b ,d i a º e r i = r derived qualified energy resource;

t(10) etwo wcents d($.02) mper akilowatt-hour nin othe (9)tenth twotaxable andyear one-halfin centswhich ($.025)the perqualified denergy mgenerator :produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 15 - e a n e d r e l u [ A d HTRC/HB 98 kilowatt-hour in the ninth taxable year in which the qualified energy generator produces electricity using a solar-light- derived or solar-heat-derived qualified energy resource;

[and] (10) two cents ($.02) per kilowatt-hour in the tenth taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat- derived qualified energy resource;

A taxpayer eligible for a renewable energy production tax credit pursuant to Subsection B of this section shall be eligible for the renewable energy production tax credit for [ten] one hundred twenty consecutive [years] months, h beginning on the date the qualified energy generator begins u » r t h producing electricity.

g e l i F.

h r i s (1) "biomass" means organic material that is h , e h t u g available on a renewable or recurring basis, including:

eHTRC/HB b98/a lPage e16 e , gh (a) forest-related materials, including n d d i = = o h mill residues, logging residues, forest thinnings, slash, lbrush, ]low-commercial-value bmaterials ,dor iundesirable aspecies, ºsalt rcedar eand rother =phreatophyte brush,or low-commercial-valuewoody materialsvegetation orremoved undesirablefrom species,river tbasins eor wwatersheds dand mwoody amaterial nharvested ofor saltthe cedarpurpose andof otherforest phreatophytefire orfuel woodyreduction vegetationor removedforest dhealth mand :watershed improvement;

b r e t º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 16 - e a n e d r e l u [ A d from river basins or watersheds and woody material harvested for the purpose of forest fire fuel reduction or forest health and watershed improvement;

(d) solid woody waste materials, including landscape or right-of-way tree trimmings, rangeland maintenance residues, waste pallets, crates and manufacturing, construction and demolition wood wastes, excluding pressure-pressure-treated, treated, chemically treated or painted wood wastes and wood contaminated with plastic;

(f) landfill gas, wastewater treatment h g gas and biosolids, including organic waste byproducts generated o t hr during the wastewater treatment process;

and gHTRC/HB e98/a iPage k17 (g) segregated municipal solid waste, h r i s h excluding tires and medical and hazardous waste;

, t, e u g (2) "qualified energy generator" means [a] an e b l e e h electric generating facility with at least one megawatt n d d i = = o h generating capacity located in New Mexico that produces l ] b ,d i a º e r i = r electricity using a qualified energy resource and [that sells t e w d m a n o that] the electricity produced is sold to an unrelated person;

dand m(3) :"qualified energy resource" means a resource that generates electrical energy by means of a fluidized bed technology or similar low-emissions technology or a zero-emissions generation technology that has substantial long-term production potential and that uses only the following energy sources:

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 17 - e a n e d r e l u [ A d HTRC/HB 98 and (3) "qualified energy resource" means a resource that generates electrical energy by means of a fluidized bed technology or similar low-emissions technology or a zero-emissions generation technology that has substantial long-term production potential and that uses only the following energy sources:

A person that holds title to a facility generating electricity from a qualified energy resource or a person that leases such a facility from a county or municipality pursuant to an industrial revenue bond may request certification of eligibility for the renewable energy h g production tax credit from the energy, minerals and natural o t hr resources department, which shall determine if the facility is g e i k a qualified energy generator.

The energy, minerals and naturalHTRC/HB h98/a rPage i18 snatural h resources department may certify the eligibility of an energy , t, e u g generator only if the total amount of electricity that may be e b l e e h produced annually by all qualified energy generators that are n d d i = = o h l ] b ,d certified pursuant to this section and pursuant to Section i a º e r i = r 7-2A-19 NMSA 1978 will not exceed a total of two million tmegawatt-hours eplus wan dadditional mfive ahundred nthousand o megawatt-hours plusproduced anby additionalqualified fiveenergy hundredgenerators thousandusing da msolar-light-derived :or solar-heat-derived qualified energy resource.

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 18 - e a n e d r e l u [ A d megawatt-hours produced by qualified energy generators using a solar-light-derived or solar-heat-derived qualified energy resource.

The energy, minerals and natural resources department may issue rules governing the procedure for administering the provisions of this subsection and shall report annually to the appropriate interim legislative committee information that will allow the legislative committee to analyze the effectiveness of the renewable energy production tax credit, including the identity of HTRC/HB 98/a Page 19 qualified energy generators, the energy production means h g used, the amount of energy produced by those qualified energy o t hr generators and whether any applications could not be approved g e i k due to program limits.

h r i s h H.

A taxpayer may be allocated all or a portion of , t, e u g the right to claim a renewable energy production tax credit e b l e e h without regard to proportional ownership interest if:

n d d i = = o h (1) the taxpayer owns an interest in a l ] b ,d i a º e r i = r business entity that is taxed for federal income tax purposes t e w d m a n o as a partnership;

d(2) mthe :business entity:

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 19 - e a n e d r e l u [ A d HTRC/HB 98 (2) the business entity:

(3) the taxpayer and all other taxpayers HTRC/HB 98/a Page 20 allocated a right to claim the renewable energy production tax h g credit pursuant to this subsection own collectively at least a o t hr five percent interest in a qualified energy generator;

g e i k (4) the business entity provides notice of the h r i s h allocation and the taxpayer's interest to the energy, minerals , t, e u g and natural resources department on forms prescribed by that e b l e e h department for the taxable year to be claimed;

and n d d i = = o h l ] b ,d (5) the energy, minerals and natural resources i a º e r i = r department certifies the allocation for the taxable year to be t e w d m a n o claimed in writing to the taxpayer.

dI. m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 20 - e a n e d r e l u [ A d I.

[A husband and wife] Married individuals who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the credit that would have been allowed on a joint return.

A taxpayer may claim the renewable energy production tax credit by submitting to the taxation and revenue department the certificate issued by the energy, minerals and natural resources department, pursuant to Subsection G or H of this section, documentation showing the HTRC/HB 98/a Page 21 taxpayer's interest in the facility, documentation of the amount of electricity produced by the facility in the taxable year and any other information the taxation and revenue department may require to determine the amount of the tax credit due the taxpayer.

If the requirements of this section have been h g complied with, the department shall approve payment of the o t hr renewable energy production tax credit.

The credit may be g e i k deducted from a taxpayer's New Mexico income tax liability for h r i s h the taxable year for which the credit is claimed.

If the , t, e u g amount of tax credit exceeds the taxpayer's income tax e b l e e h liability for the taxable year:

n d d i = = o h (1) the excess may be carried forward for a l ] b ,d i a º e r i = r period of five taxable years;

or t e w d m a n o (2) if the tax credit was issued with respect dto ma :qualified energy generator that first produced electricity using a qualified energy resource on or after October 1, 2007, the excess shall be refunded to the taxpayer.

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 21 - e a n e d r e l u [ A d HTRC/HB 98 to a qualified energy generator that first produced electricity using a qualified energy resource on or after October 1, 2007, the excess shall be refunded to the taxpayer.

Once a taxpayer has been granted a renewable energy production tax credit for a given facility, that taxpayer shall be allowed to retain the facility's original date of application for tax credits for that facility until either the facility goes out of production for more than six consecutive months in a year or until the facility's ten-year HTRC/HB 98/a Page 22 eligibility has expired." SECTION 7.

h The tax credit provided in this section may not be claimed with u » r t h respect to the same electricity production for which the g e l i renewable energy production tax credit provided in the Income h r i s Tax Act has been claimed.

h , e h t u g B.

A person is eligible for the renewable energy e b l e e , gh production tax credit if the person:

n d d i = = o h (1) holds title to a qualified energy l ] b ,d i a º r e r = generator that first produced electricity on or before January t e w d m a n o 1, 2018;

or d(2) mleases :property upon which a qualified energy generator operates from a county or municipality under authority of an industrial revenue bond and if the qualified energy generator first produced electricity on or before January 1, 2018.

b r e t º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 22 - e a n e d r e l u [ A d (2) leases property upon which a qualified energy generator operates from a county or municipality under authority of an industrial revenue bond and if the qualified energy generator first produced electricity on or before January 1, 2018.

The amount of the tax credit shall equal one cent ($.01) per kilowatt-hour of the first four hundred thousand megawatt-hours of electricity produced by the qualified energy generator in the taxable year using a wind- HTRC/HB 98/a Page 23 or biomass-derived qualified energy resource;

provided that the total amount of tax credits claimed by all taxpayers for a single qualified energy generator [in a taxable year] using a wind- or biomass-derived qualified energy resource shall not exceed one cent ($.01) per kilowatt-hour of the first four hundred thousand megawatt-hours of electricity produced by the qualified energy generator in a taxable year.

The amount of the tax credit for electricity produced by a qualified energy generator in the taxable year using a solar-light-derived or solar-heat-derived qualified h energy resource shall be at the amounts specified in Paragraphs u » r t h (1) through [(10)] (11) of this subsection;

provided that the g e l i total amount of tax credits claimed [for a taxable year] by all h r i s taxpayers in a taxable year for a single qualified energy h , e h t u g generator using a solar-light-derived or solar-heat-derived e b l e e , gh qualified energy resource shall be limited to the first two n d d i = = o h hundred thousand megawatt-hours of electricity produced by the l ] b ,d i a º r e r = qualified energy generator in the taxable year:

t(1) eone wand done-half mcents a($.015) nper okilowatt-hour (1)in onethe andfirst one-halftaxable centsyear ($.015)in perwhich dthe mqualified :energy generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;

b(2) rtwo ecents t($.02) ºper o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 23 - e a n e d r e l u [ A d HTRC/HB 98 kilowatt-hour in the firstsecond taxable year in which the qualified energy HTRC/HB 98/a Page 24 generator produces electricity using a solar-light-solar-light-derived derived or solar-heat-derived qualified energy resource;

(2)(3) two and one-half cents ($.02)($.025) per kilowatt-hour in the secondthird taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-solar-heat-derived derived qualified energy resource;

(3)(4) twothree and one-half cents ($.025)($.03) per kilowatt-hour in the thirdfourth taxable year in which the qualified energy generator produces electricity using a solar-light-solar-light-derived derived or solar-heat-derived qualified energy resource;

(4)(5) three and one-half cents ($.03)($.035) per kilowatt-hour in the fourthfifth taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-solar-heat-derived derived qualified energy resource;

(5)(6) threefour and one-half cents ($.035)($.04) per h kilowatt-hour in the fifthsixth taxable year in which the qualified u » r t h energy generator produces electricity using a solar-light-solar-light-derived g e l i derived or solar-heat-derived qualified energy resource;

h(7) rthree iand sone-half (6) four cents ($.04)($.035) per kilowatt-hour in the hseventh , e h t u g sixth taxable year in which the qualified energy generator e b l e e , gh produces electricity using a solar-light-derived or solar-heat-solar-heat-derived n d d i = = o h derived qualified energy resource;

lHTRC/HB ]98/a bPage ,d25 i(8) a º r e r = (7) three and one-half cents ($.035)($.03) per t e w d m a n o kilowatt-hour in the seventheighth taxable year in which the dqualified menergy :generator produces electricity using a solar-light-derived or solar-heat-derived qualified energy resource;

b(9) rtwo eand tone-half ºcents o($.025) tper nkilowatt-hour =in .219419.2AICthe Februaryninth 15,taxable 2021year (3:58pm)in swhich kthe m e - 24 - e a n e d r e l u [ A d qualified energy generator produces electricity using a solar-solar-light-derived light-derived or solar-heat-derived qualified energy resource;

(8)(10) threetwo cents ($.03)($.02) per kilowatt-hour in the eighthtenth taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat-solar-heat-derived derived qualified energy resource;

(9) two and one-half cents ($.025) per kilowatt-hour in the ninth taxable year in which the qualified energy generator produces electricity using a solar-light- derived or solar-heat-derived qualified energy resource;

[and] (10) two cents ($.02) per kilowatt-hour in the tenth taxable year in which the qualified energy generator produces electricity using a solar-light-derived or solar-heat- derived qualified energy resource;

h g E.

A taxpayer eligible for a renewable energy o t hr production tax credit pursuant to Subsection B of this section g e i k shall be eligible for the renewable energy production tax h r i s h credit for [ten] one hundred twenty consecutive [years] months, , t, e u g beginning on the date the qualified energy generator begins e b l e e h producing electricity.

n d d i = = o h F.

lHTRC/HB ]98/a bPage ,d26 i a º e r i = r (1) "biomass" means organic material that is t e w d m a n o available on a renewable or recurring basis, including:

d(a) mforest-related :materials, including mill residues, logging residues, forest thinnings, slash, brush, low-commercial-value materials or undesirable species, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds and woody material harvested for the purpose of forest fire fuel reduction or forest health and watershed improvement;

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 25 - e a n e d r e l u [ A d HTRC/HB 98 (a) forest-related materials, including mill residues, logging residues, forest thinnings, slash, brush, low-commercial-value materials or undesirable species, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds and woody material harvested for the purpose of forest fire fuel reduction or forest health and watershed improvement;

(d) solid woody waste materials, including landscape or right-of-way tree trimmings, rangeland h maintenance residues, waste pallets, crates and manufacturing, u » r t h construction and demolition wood wastes, excluding g e l i pressure-treated, chemically treated or painted wood wastes and h r i s wood contaminated with plastic;

h , e h t u g (e) crops and trees planted for the e b l e e , gh purpose of being used to produce energy;

n d d i = = o h (f) landfill gas, wastewater treatment lHTRC/HB ]98/a bPage ,d27 i a º r e r = gas and biosolids, including organic waste byproducts generated t e w d m a n o during the wastewater treatment process;

and d(g) msegregated :municipal solid waste, excluding tires and medical and hazardous waste;

b(2) r"qualified eenergy tgenerator" ºmeans oan telectric ngenerating =facility .219419.2AICwith Februaryat 15,least 2021one (3:58pm)megawatt sgenerating kcapacity mlocated ein -New 26Mexico -that eproduces aelectricity nusing ea dqualified renergy eresource land uthe [electricity Aproduced dis (g)sold segregatedto municipalan solidunrelated waste,person; excluding tires and medical and hazardous waste;

(2) "qualified energy generator" means [a] an electric generating facility with at least one megawatt generating capacity located in New Mexico that produces electricity using a qualified energy resource and [that sells that] the electricity produced is sold to an unrelated person;

A person that holds title to a facility h g generating electricity from a qualified energy resource or a o t hr person that leases such a facility from a county or g e i k municipality pursuant to an industrial revenue bond may request h r i s h certification of eligibility for the renewable energy , t, e u g production tax credit from the energy, minerals and natural eHTRC/HB b98/a lPage e28 e h resources department, which shall determine if the facility is n d d i = = o h a qualified energy generator.

The energy, minerals and natural lresources ]department bmay ,dcertify ithe aeligibility ºof ean renergy igenerator =only rif resourcesthe departmenttotal amount of electricity that may certifybe theproduced eligibilityannually ofby anall qualified energy tgenerators ethat ware dcertified mpursuant ato nthis osection generatorand onlypursuant ifto the totalIncome amountTax Act will not exceed a total of electricitytwo thatmillion maymegawatt-hours beplus dan madditional :five hundred thousand megawatt-hours produced by qualified energy generators using a solar-light-derived or solar-heat-derived qualified energy resource.

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 27 - e a n e d r e l u [ A d HTRC/HB 98 produced annually by all qualified energy generators that are certified pursuant to this section and pursuant to the Income Tax Act will not exceed a total of two million megawatt-hours plus an additional five hundred thousand megawatt-hours produced by qualified energy generators using a solar-light- derived or solar-heat-derived qualified energy resource.

The energy, minerals and natural resources h department may issue rules governing the procedure for u » r t h administering the provisions of this subsection and shall g e l i report annually to the appropriate interim legislative h r i s committee information that will allow the legislative committeeHTRC/HB h98/a ,Page e29 hcommittee t u g to analyze the effectiveness of the renewable energy production e b l e e , gh tax credit, including the identity of qualified energy n d d i = = o h generators, the energy production means used, the amount of l ] b ,d i a º r e r = energy produced by those qualified energy generators and t e w d m a n o whether any applications could not be approved due to program dlimits. m :

b r e t º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 28 - e a n e d r e l u [ A d limits.

or (c) owns, through one or more intermediate business entities that are each taxed for federal income tax purposes as a partnership, an interest in the h g business entity described in Subparagraph (b) of this oHTRC/HB t98/a hrPage 30 paragraph;

g e i k (3) the taxpayer and all other taxpayers h r i s h allocated a right to claim the renewable energy production tax , t, e u g credit pursuant to this subsection own collectively at least a e b l e e h five percent interest in a qualified energy generator;

n d d i = = o h (4) the business entity provides notice of the l ] b ,d i a º e r i = r allocation and the taxpayer's interest to the energy, minerals t e w d m a n o and natural resources department on forms prescribed by that ddepartment mfor :the taxable year to be claimed;

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 29 - e a n e d r e l u [ A d HTRC/HB 98 department for the taxable year to be claimed;

A taxpayer may claim the renewable energy production tax credit by submitting to the taxation and revenue department the certificate issued by the energy, minerals and natural resources department, pursuant to Subsection G or H of this section, documentation showing the taxpayer's interest in the facility, documentation of the amount of electricity produced by the facility in the taxable HTRC/HB 98/a Page 31 year and any other h information the taxation and revenue department may require to u » r t h determine the amount of the tax credit due the taxpayer.

g e l i K.

If the requirements of this section have been h r i s complied with, the department shall approve payment of the h , e h t u g renewable energy production tax credit.

The credit may be e b l e e , gh deducted from a taxpayer's New Mexico corporate income tax n d d i = = o h liability for the taxable year for which the credit is claimed.

l ] b ,d i a º r e r = If the amount of tax credit exceeds the taxpayer's corporate t e w d m a n o income tax liability for the taxable year:

d(1) mthe :excess may be carried forward for a period of five taxable years;

b r e t º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 30 - e a n e d r e l u [ A d (1) the excess may be carried forward for a period of five taxable years;

Section 7-2A-30 NMSA 1978 (being Laws 2019, HTRC/HB 98/a Page 32 Chapter 270, Section 20) is amended to read:

DEDUCTION TO OFFSET MATERIAL FINANCIAL EFFECTS OF CHANGES IN DEFERRED TAX AMOUNTS DUE TO CERTAIN CHANGES MADE TO SECTIONS 7-2A-2, 7-2A-3, 7-2A-8.3, 7-4-10 AND 7-4-18 NMSA 1978.-- h g A.

For each of ten consecutive taxable years o t hr beginning on or after January 1, 2026, a filing group subject g e i k to the corporate income tax whose members are part of a h r i s h publicly traded company may claim a deduction, as provided by , t, e u g Subsection B of this section, from taxable income before net e b l e e h operating losses are deducted.

n d d i = = o h B.

The deduction for each taxable year shall not lexceed ]one-tenth bof ,dthe iamount anecessary ºto eoffset rthe iaggregate =increase rin exceednet one-tenthdeferred oftax liabilities, the amountaggregate [of]decrease necessaryin tonet offsetdeferred thetax tassets eor wan daggregate mchange from a nnet odeferred aggregatetax increaseasset into a net deferred tax liabilities,liability, as measured under generally accepted accounting principles, that resulted from the dchanges mto :Sections 7-2A-2, 7-2A-3, 7-2A-8.3, 7-4-10 and 7-4-18 NMSA 1978 made by this 2019 act;

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 31 - e a n e d r e l u [ A d HTRC/HB 98 aggregate decrease in net deferred tax assets or an aggregate change from a net deferred tax asset to a net deferred tax liability, as measured under generally accepted accounting principles, that resulted from the changes to Sections 7-2A-2, 7-2A-3, 7-2A-8.3, 7-4-10 and 7-4-18 NMSA 1978 made by this 2019 act;

(1) the amount of the aggregate change in deferred tax assets and deferred tax liabilities is properly included in the calculation of the deferred tax asset or deferred tax liability reported as part of the consolidated financial statements, as required by the federal Securities HTRC/HB 98/a Page 33 Exchange Act of 1934, for the first reporting period affected by the changes to Sections 7-2A-2, 7-2A-3, 7-2A-8.3, 7-4-10 and 7-4-18 NMSA 1978 made by this 2019 act but for the deduction provided by this section;

and (2) if the deduction provided by this section h is greater than the taxpayer's net income, any excess amount u » r t h shall be carried forward and applied as a deduction to the g e l i taxpayer's net income in future income years until fully h r i s utilized.

h , e h t u g C.

A filing group shall not claim a deduction e b l e e , gh pursuant to this section unless the filing group files a n d d i = = o h preliminary notice with the secretary prior to January 1, 2023 l ] b ,d i a º r e r = and provides necessary information to show the calculation of t e w d m a n o the deduction expected to be claimed, as the secretary may drequire." mSECTION :9.

b r e t º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 32 - e a n e d r e l u [ A d require."»Hfl1 SECTION Hfl1º 6.»Hfl1 Hfl1º9.»Hfl1 Section 7-2E-1.1 NMSA 1978 (being Laws 2007, Chapter 172, Section 2, as amended) is amended to read:

Every eligible employer may apply for, and the taxation and revenue department may [allow ] approve, a tax credit for each qualifying job the employer creates.

(1) twenty-five percent of the first sixteen HTRC/HB 98/a Page 34 thousand dollars ($16,000) in wages paid for the qualifying job if the job is performed or based at a location in a tier one area;

h B.

The purpose of the rural job tax credit is to g o encourage businesses to start new businesses or expand existing t hr g e i k businesses in rural areas of the state.

h r i s C.

The amount of the rural job tax credit shall be h , t, six and one-fourth percent of the first sixteen thousand e u g e b l e e h dollars ($16,000) in wages paid for the qualifying job in a n d d i = = o h qualifying period.

The rural job tax credit may be claimed for l ] b ,d i a º e each qualifying job for a maximum of:

r i = r t e w d (1) four qualifying periods for each mqualifying job performed or based at a nlocation oin da mtier :one area;

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 33 - e a n e d r e l u [ A d HTRC/HB 98 qualifying job performed or based at a location in a tier one area;

(1) the amount of wages paid to each HTRC/HB 98/a Page 35 eligible employee during each qualifying period;

[and ] (3) whether the qualifying job was in a tier one or tier two area;

h (5) the total number of employees employed by g o the employer at the job location on the day prior to the t hr g e i k qualifying period and on the last day of the qualifying period;

h r i s (6) whether the eligible employer is receiving h , t, or is eligible to receive development training program e u g e b l e e h assistance pursuant to Section 21-19-7 NMSA 1978;

and n d d i = = o h (7) whether the eligible employer has ceased l ] b ,d i a º e business operations at any of its business locations in New r i = r t e w d Mexico.

mE. a n o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 34 - e a n e d r e l u [ A d E.

To receive a rural job tax credit with respect to any qualifying period, an eligible employer [must ] shall apply to HTRC/HB 98/a Page 36 the taxation and revenue department once per calendar year on forms and in the manner the department may prescribe.

If all the h requirements of this section have been complied with, the g o taxation and revenue department [may ] shall issue to the t hr g e i k applicant a document granting a tax credit for the appropriate h r i s qualifying period.

The tax credit document shall be numbered h , t, for identification and declare its date of issuance and the e u g e b l amount of rural job tax credit allowed for the respective jobs e e h n d d i = = o h created.

The tax credit documents may be sold, exchanged or l ] b ,d i a º e otherwise transferred and may be carried forward for a period r i = r t e w d of three years from the date of issuance.

The parties to such ma transaction to sell, exchange or transfer a nrural ojob dtax mcredit :document shall notify the department of the transaction within ten days of the sale, exchange or transfer.

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 35 - e a n e d r e l u [ A d HTRC/HB 9898/a aPage transaction37 toG. sell, exchange or transfer a rural job tax credit document shall notify the department of the transaction within ten days of the sale, exchange or transfer.

G.The holder of the tax credit document may claim all or a portion of the rural job tax credit granted by the document against the holder's modified combined tax liability, personal income tax liability or corporate income tax liability.

The holder of the tax credit document may [apply ] claim all or a portion of the rural job tax credit granted by the document against the holder's modified combined tax liability, personal income tax liability or corporate income tax liability.

Notwithstanding the provisions of Section 7-1-8 NMSA 1978, the taxation and revenue department may disclose to any person the balance of rural job tax credit remaining on any h tax credit document and the balance of credit remaining on that g o document for any period.

t hr g e i k I.

The secretary of economic development, the h r i s secretary of taxation and revenue and the secretary of h , t, workforce solutions or their designees shall annually evaluate e u g e b l e e h the effectiveness of the rural job tax credit in stimulating n d d i = = o h economic development in the rural areas of New Mexico and make l ] b ,d i a º e a joint report of their findings to each session of the r i = r t e w d legislature so long as the rural job tax credit is in effect.

mJ. a n o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 36 - e a n e d r e l u [ A d [J.

An eligible employer that creates a qualifying job in the period beginning on or after July 1, 2006 but before July 1, 2007 or creates a qualifying job, the qualifying period of which includes a part of the period between July 1, 2006 and July 1, 2007, for which the eligible employer has not received a rural job tax credit document pursuant to this section may submit an application for, and the taxation and revenue department may issue to the eligible employer applying, a document granting a tax credit for the appropriate qualifying period.

Claims for a rural job tax credit submitted pursuant to the provisions of this subsection shall be submitted within three years from the date of issuance of the rural job tax credit document.

K.] J.

HTRC/HB 98/a Page 38 (1) the job is created due to a business merger, acquisition or other change in organization;

(2) the eligible employee was terminated from employment in New Mexico by another employer involved in the h merger, acquisition or other change in organization;

[and ] or g o (3) the job is performed by:

t hr g e i k (a) the person who performed the job or h r i s its functional equivalent prior to the business merger, h , t, acquisition or other change in organization;

or e u g e b l (b) a person replacing the person who e e h n d d i = = o h performed the job or its functional equivalent prior to the l ] b ,d i a º e business merger, acquisition or other change in organization.

rK. i = r t e w d [L.

]Notwithstanding K.Subsection J of this section, a qualifying job that was created by another employer and for which the rural job tax credit application was received by the taxation and revenue department prior to July 1, 2013 and is under review or has been approved shall remain eligible for the rural job tax credit for the balance of the qualifying periods for which the job qualifies by the new employer that results from a business merger, acquisition or other change in the organization.

NotwithstandingL. Subsection [K] J of this m a n o d m :

bA ejob dshall snot ºbe oeligible tfor n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 37 - e a nrural ejob dtax rcredit epursuant lto uthis [section Aif dthe HTRC/HB 98 section, a qualifying job thatis was created bydue anotherto employeran andeligible foremployer whichentering theinto rurala jobcontract taxor creditbecoming [claima ]subcontractor applicationto wasa receivedcontract bywith thea taxationgovernmental andentity revenuethat departmentHTRC/HB prior98/a toPage July39 1,replaces 2013one and is under review or hasmore beenentities approvedperforming shallfunctionally remainequivalent eligibleservices for the ruralgovernmental jobentity taxin creditNew forMexico unless the balancejob ofis thea qualifying periods for which the job qualifies by the new employer that resultswas fromnot abeing businessperformed merger,by acquisitionan oremployee otherof change in the organization.replaced entity.

[M.]M. L.

A job shall not be eligible for a rural job tax credit pursuant to this section if the job is created due to an eligible employer entering into a contract or becoming a subcontractor to a contract with a governmental entity that replaces one or more entities performing functionally equivalent services for the governmental entity in New Mexico unless the job is a qualifying job that was not being performed by an employee of the replaced entity.

h [N.] M.

g o (1) "dependent" means "dependent" as defined t hr g e i k in 26 U.S.C.

152(a), as that section may be amended or h r i s renumbered;

h , t, [(1)] (2) "eligible employee" means any e u g e b l e e h individual other than an individual who:

n(a) dis da idependent = = o h [(a) bears any of the relationshipsemployer; l ] b ,d i a º e described in Paragraphs (1) through (8) of 26 U.S.C.

Section(b) rif ithe =employer ris tan eestate wor dtrust, 152(a)is toa thegrantor, employerbeneficiary or,or iffiduciary of the employerestate or trust or is a corporation,dependent toof m a ngrantor, obeneficiary dor mfiduciary :of the estate or trust;

b(c) eif dthe semployer ºis oa tcorporation, nis = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 38 - e a ndependent eof d r e l u [ A d an individual who owns, directly or indirectly, more than fifty percent in value of the outstanding stock of the corporationcorporation; or, if the employer is an entity other than a corporation, to any individual who owns, directly or indirectly, more than fifty percent of the capital and profits interests in the entity;

(b) if the employer is an estate or trust, is a grantor, beneficiary or fiduciary of the estate or trust or is an individual who bears any of the relationships described in Paragraphs (1) through (8) of 26 U.S.C.

Section 152(a) to a grantor, beneficiary or fiduciary of the estate or trust;

or (c) is a dependent, as that term is described in 26 U.S.C.

Section 152(a)(9), of the employer or, if the taxpayer is a corporation, of an individual who owns, directly or indirectly, more than fifty percent in value of the outstanding stock of the corporation or, if the employer is an entity other than a corporation, of any individual who owns, directly or indirectly, more than fifty percent of the capital h and profits interests in the entity or, if the employer is an g o estate or trust, of a grantor, beneficiary or fiduciary of the t hr g e i k estate or trust;] h r i s (a) is a dependent of the employer;

h , t, (b) if the employer is an estate or e u g e b l trust, is a grantor, beneficiary or fiduciary of the estate or e e h n d d i = = o h trust or is a dependent of a grantor, beneficiary or fiduciary l ] b ,d i a º e of the estate or trust;

r i = r t e w d (c) if the employer is a corporation, is m a n o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 39 - e a n e d r e l u [ A d HTRC/HB 98 a dependent of an individual who owns, directly or indirectly, more than fifty percent in value of the outstanding stock of the corporation;

or (e) is working or has worked as an HTRC/HB 98/a Page 40 employee or as an independent contractor for an entity thatthat, directly or indirectlyindirectly, owns stock in a corporation of the eligible employer or other interest of the eligible employer that represents fifty percent or more of the total voting power of that entity or has a value equal to fifty percent or more of the capital and profits interestinterests in the entity;

[(2)] (3) "eligible employer" means an employer who is eligible for in-plant training assistance h pursuant to Section 21-19-7 NMSA 1978;

g o [(3)] (4) "metropolitan statistical area" t hr g e i k means a metropolitan statistical area in New Mexico as h r i s determined by the United States bureau of the census;

h , t, [(4)] (5) "modified combined tax liability" e u g e b l e e h means the total liability for the reporting period for the n d d i = = o h gross receipts tax imposed by Section 7-9-4 NMSA 1978 together l ] b ,d i a º e with any tax collected at the same time and in the same manner ras ithat =gross rreceipts ttax, esuch was dthe ascompensating thattax, the withholding tax, the interstate telecommunications gross receipts tax, suchthe assurcharges imposed by Section 63-9D-5 NMSA and the compensatingsurcharge tax,imposed by Section 63-9F-11 NMSA 1978, minus the mamount aof nany ocredit dother mthan :the rural job tax credit applied against any or all of these taxes or surcharges;

bbut e"modified dcombined stax ºliability" oexcludes tall namounts =collected .219419.2AICwith Februaryrespect 15,to 2021 (3:58pm) s k m e - 40 - e a n e d r e l u [ A d withholding tax, the interstate telecommunications gross receipts tax,tax theor surchargescompensating imposedtax by Section 63-9D-5 NMSA and the surcharge imposed by Sectiona 63-9F-11municipality NMSA 1978, minus the amount of any credit other than the rural job tax credit applied against any or allcounty; of these taxes or surcharges;

butHTRC/HB "modified98/a combinedPage tax41 liability"(6) excludes"new alljob" amountsmeans collecteda withjob respectthat tois [localoccupied optionby grossan receiptsemployee taxeswho ]has anot grossbeen receiptsemployed taxin orNew compensatingMexico taxby imposedthe byeligible aemployer municipalityin orthe county;three years prior to the date of hire;

(6)(7) "new"qualifying job" means a new job that iswas occupiedcreated byafter anJuly employee1, who2000 hasand that was not beencreated employeddue to a change in Neworganizational Mexicostructure established by the eligible employer inthat theis threeoccupied yearsby prioran toeligible theemployee datefor at least forty-four weeks of hire;a qualifying period;

[(5)](8) (7) "qualifying job"period" means athe newperiod jobof thattwelve wasmonths createdbeginning afteron Julythe 1,day 2000an andeligible thatemployee wasbegins notworking createdin duea toqualifying ajob changeor inthe organizationalperiod structureof establishedtwelve bymonths thebeginning employeron thatthe isanniversary occupiedof bythe day an eligible employee forbegan atworking leastin [forty-eight ] forty-four weeks of a qualifying period;job;

[(6)](9) (8)"rural "qualifyingarea" period" means theany periodpart of twelve months beginning on the daystate another eligiblethan: employee h begins working in a qualifying job or the period of twelve g o months beginning on the anniversary of the day an eligible t hr g e i k employee began working in a qualifying job;

h(a) ran iH sclass [(7)]county; (9) "rural area" means any part of the h , t, state other than:

e(b) uthe gstate efairgrounds; b l (a) an H class county;

e(c) ean hincorporated nmunicipality dwithin da imetropolitan =statistical =area oif hthe (b)municipality's population is thirty thousand or more according to the statemost fairgrounds;recent federal decennial census;

l ] b ,d i a º e (c) an incorporated municipality within r i = r t e w d a metropolitan statistical area if the municipality's m a n o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 41 - e a n e d r e l u [ A d HTRC/HB 98 population is thirty thousand or more according to the most recent federal decennial census;

[(8)]HTRC/HB 98/a Page 42 (10) "tier one area" means:

[(9)] (11) "tier two area" means any municipality within the rural area if the municipality's population according to the most recent federal decennial census is more than fifteen thousand;

and [(10)] (12) "wages" means all compensation h paid by an eligible employer to an eligible employee through g o the employer's payroll system, including those wages the t hr g e i k employee elects to defer or redirect, such as the employee's h r i s contribution to 401(k) or cafeteria plan programs, but not h , t, including benefits or the employer's share of payroll taxes." e u g e b l e e h SECTION Hfl1º10. 7.»Hfl1 Hfl1º10.»Hfl1 Section 7-8A-9 NMSA n d d i = = o h 1978 (being Laws 1997, Chapter 25, Section 9) is amended to l ] b ,d i a º e read:

rSection i7-8A-9 =NMSA r1978 t(being eLaws w1997, dChapter m25, aSection n9) ois "7-8A-9.amended to read:

NOTICE"7-8A-9. AND PUBLICATION OF LISTS OF ABANDONED d m :

bNOTICE eAND dPUBLICATION sOF ºLISTS oOF tABANDONED nPROPERTY.--The = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 42 - e a n e d r e l u [ A d PROPERTY.--[(a)] The administrator shall publish a notice not later than November 30 of [the ] each year [next following the year] in which abandoned property has been paid or delivered to the administrator.

The notice [must ] shall be published in a newspaper of general circulation in [the ] each county of this statestate. [in which is located the last known address of any person named in the notice.

IfThe aadvertisement holdermust doesbe notin reporta anHTRC/HB address98/a forPage the43 apparentform ownerthat, orin the addressjudgment isof outside this state, the noticeadministrator, mustis belikely publishedto inattract the countyattention in which the holder has its principal place of business within this state or another county that the administratorgeneral reasonablypublic. selects].

The advertisement mustshall becontain: in a form that, in the judgment of the administrator, is likely to attract the attention of the [apparent owner of the unclaimed property ] general public.

TheA. [form must ] advertisement shall contain:

[(1)the ]website A.on which to search for information about abandoned properties;

theB. [name of each person appearing to be the owner of the property, as set forth in the report filed by the holder] website on which to search for information about abandoned properties;

hthe [(2)email ]address B.of the administrator;

theC. [last known address or location of g o each person appearing to be the owner of the property, if an t hr g e i k address or location is set forth in the report filed by the h r i s holder] email address of the administrator;

hthe ,telephone t,number C.and physical mailing address of the administrator;

theD. telephone number and physical mailing e u g e b l address of the administrator;

ea estatement hexplaining nthat dproperty dof ithe =owner =is opresumed hto [(3)be ]abandoned D.and has been taken into the protective custody of the administrator;

a statement explaining that property of l ] b ,d i a º e the owner is presumed to be abandoned and hasE. been taken into r i = r t e w d the protective custody of the administrator;

a statement providing information about the property and mthe return to the property's owner is available to a nperson ohaving da mlegal :or beneficial interest in the property, upon request to the administrator." SECTION 11.

bSection e7-9-3 dNMSA s1978 º(being oLaws t1978, nChapter =46, .219419.2AICSection February1, 15,as 2021amended (3:58pm)by sLaws k2019, mChapter e270, -Section 4323 -and eby aLaws n2019, eChapter d274, rSection e11) lis uamended [to Aread: d HTRC/HB 98 [(4) ] E.

a statement [that] providing information about the property and [its ] the return to the property's owner is available to a person having a legal or beneficial interest in the property, upon request to the administrator.

[(b) The administrator is not required to advertise the name and address or location of an owner of property having a total value less than fifty dollars ($50.00) or information concerning a traveler's check, money order or similar instrument.]" SECTION Hfl1º8.»Hfl1 Hfl1º11.»Hfl1 Section 7-9-3 NMSA (being Laws 1978, Chapter 46, Section 1, as amended by Laws 2019, Chapter 270, Section 23 and by Laws 2019, Chapter 274, Section 11) is amended to read:

"buying" or "selling" means a transfer of h property for consideration or the performance of service for g o consideration;

t hr g e i k B.

"department" means the taxation and revenue hHTRC/HB r98/a iPage s44 department, the secretary of taxation and revenue or an h , t, employee of the department exercising authority lawfully e u g e b l e e h delegated to that employee by the secretary;

n d d i = = o h C.

"digital good" means a digital product delivered l ] b ,d i a º e electronically, including software, music, photography, video, r i = r t e w d m a n o reading material, an application and a ringtone;

dD. m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 44 - e a n e d r e l u [ A d D.

HTRC/HB 98/a Page 45 F.

"lease" or "leasing" means an arrangement whereby, for a consideration, [property is employed for or by h any person other than the owner of the property, except that g o the granting of a license to use property is licensing and is t hr g e i k not a lease] the owner of property grants another person the h r i s exclusive right to possess and use the property for a definite h , t, term;

e u g e b l G.

"licensing" or "license" means an arrangement e e h n d d i = = o h whereby, for a consideration, the owner of property grants l ] b ,d i a º e another person a revocable, non-exclusive right to use the r i = r t e w d property;

mH. a n o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 45 - e a n e d r e l u [ A d HTRC/HB 98 [G.

] H.

[H.I.

] I.

[I.J.

] J.

[J.K.

]"marketplace K.provider" means a person who facilitates the sale, lease or license of tangible personal property or services or licenses for use of real property on HTRC/HB 98/a Page 46 a marketplace seller's behalf, or on the marketplace provider's own behalf, by:

"marketplace(1) provider"listing meansor aadvertising person who facilitates the sale, lease or licenselicense, ofby tangibleany personalmeans, hwhether propertyphysical or serviceselectronic, orincluding licensesby forcatalog, useinternet ofwebsite realor propertytelevision on a g o marketplace seller's behalf, or onradio thebroadcast; marketplace provider's t hr g e i k own behalf, by:

hand r(2) ieither sdirectly (1) listing or advertisingindirectly, thethrough sale,agreements lease or harrangements ,with t,third license,parties bycollecting anypayment means,from whetherthe physicalcustomer orand electronic,transmitting ethat upayment gto ethe bseller, lregardless eof ewhether hthe includingmarketplace byprovider catalog,receives internetcompensation website or televisionother orconsideration radioin nexchange dfor dthe imarketplace =provider's =services; o h broadcast;

andL. l ] b ,d i a º e (2) either directly or indirectly, through r i = r t e w d agreements or arrangements with third parties collecting m a n o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 46 - e a n e d r e l u [ A d payment from the customer and transmitting that payment to the seller, regardless of whether the marketplace provider receives compensation or other consideration in exchange for the marketplace provider's services;

[K.

] L.

[L.M.

] M.

or (2) a national, federal, state, Indian or HTRC/HB 98/a Page 47 other governmental unit or subdivision, or an agency, department or instrumentality of any of the foregoing;

hN. [M.

] N.

g o (1) real property;

t hr g e i k (2) tangible personal property, including h r i s electricity and manufactured homes;

h , t, (3) licenses, including licenses of digital e u g e b l goods, but not including the licenses of copyrights, trademarks e e h n d d i = = o h or patents;

and l ] b ,d i a º e (4) franchises;

rO. i = r t e w d [N.

]"research O.and development services" means an activity engaged in for other persons for consideration, for one or more of the following purposes:

"research and development services" means m a n o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 47 - e a n e d r e l u [ A d HTRC/HB 98 an activity engaged in for other persons for consideration, for one or more of the following purposes:

(4) developing new uses or applications for an existing product, process or system, whether or not the new use or application is offered as the rationale for HTRC/HB 98/a Page 48 purchase, lease or other transfer of the product, process or system;

(5) developing analytical or survey activities h incorporating technology review, application, trade-off study, g o modeling, simulation, conceptual design or similar activities, t hr g e i k whether or not offered for sale, lease or other transfer;

or h r i s (6) designing and developing prototypes or h , t, integrating systems incorporating the advances, developments or e u g e b l e e h improvements included in Paragraphs (1) through (5) of this n d d i = = o h subsection;

l ] b ,d i a º e [O.] P.

"secretary" means the secretary of taxation r i = r t e w d and revenue or the secretary's delegate;

mQ. a n o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 48 - e a n e d r e l u [ A d [P.] Q.

That tangible personal property retains its character as tangible personal property until it HTRC/HB 98/a Page 49 is installed as an ingredient or component part of a construction project in New Mexico.

and [Q.R.

]"use" R.or "using" includes use, consumption or storage other than storage for subsequent sale in the ordinary course of business or for use solely outside this state." SECTION 12.

"use"Section or7-9-7 "using"NMSA includes1978 use,(being consumptionLaws or1966, storageChapter other47, thanSection storage7, foras subsequentamended) saleis inamended theto hread: ordinary course of business or for use solely outside this g o state." t hr g e i k Hfl1ºSECTION 12.

Section"7-9-7. 7-9-7 NMSA 1978 (being Laws h r i s 1966, Chapter 47, Section 7, as amended) is amended to read:

hIMPOSITION ,AND t,RATE "7-9-7.OF TAX--DENOMINATION AS "COMPENSATING TAX".-- A.

IMPOSITIONFor ANDthe RATEprivilege OFof TAX--DENOMINATIONmaking AStaxable euse uof gtangible epersonal bproperty lin eNew eMexico, hthere "COMPENSATINGis TAX".--imposed non dthe dperson iusing =the =property oan hexcise A.tax equal to five and one-eighth percent of the value of tangible property that was:

For the privilege of [using] making taxable use l ] b ,d i a º e of tangible personal property in New Mexico, there is imposed r i = r t e w d m a n o on the person using the property an excise tax equal to five d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 49 - e a n e d r e l u [ A d HTRC/HB 98 and one-eighth percent of the value of tangible property that was:

or (2) acquired [inside or outside of this state as the result of a transaction with a person located outside this state that would have been subject to the gross receipts tax had the tangible personal property been acquired from a person with nexus with New Mexico] in a transaction for which the seller's receipts were not subject to the gross receipts tax.

For the purpose of Subsection A of this section, value of tangible personal property shall be the HTRC/HB 98/a Page 50 adjusted basis of the property for federal income tax purposes determined as of the time of acquisition or introduction into this state or of conversion of the property to taxable use, whichever is h later.

If no adjusted basis for federal income tax purposes is u » r t h established for the property, a reasonable value of the g e l i property shall be used.

h r i s C.

For the privilege of [using] making taxable use h , e h t u g of a license or franchise in New Mexico, there is imposed on e b l e e , gh the person using the license or franchise an excise tax equal n d d i = = o h to the rate provided in Subsection A of this section against l ] b ,d i a º r e r = the value of the license or franchise in its use in this state.

t e w d m a n o The department by rule, ruling or instruction shall fairly dapportion, mwhere :appropriate, the value of a license or franchise to its value in use in New Mexico.

bThe rtax eshall tapply ºonly oto tthe nvalue =of .219419.2AICa Februarylicense 15,or 2021franchise (3:58pm)used sin kNew mMexico ewhere -the 50license -or efranchise awas nacquired ein da rtransaction e l u [ A d apportion, where appropriate, the valuereceipts offrom awhich licensewere ornot franchisesubject to itsthe valuegross inreceipts usetax. in New Mexico.

[For use of a license or franchise to be taxable under this subsection, the value of the license or franchise shall be acquired inside or outside this state as the result of a transaction with a person located outside this state that would have been subject to the gross receipts tax had the license or franchise been acquired from a person with nexus with this state] The tax shall apply only to the value of a license or franchise used in New Mexico where the license or franchise was acquired in a transaction the receipts from which were not subject to the gross receipts tax.

For the privilege of [using] making taxable use of services in New Mexico, there is imposed on the person using the services an excise tax equal to the rate provided in Subsection A of this section against the value of the services at the time the services were performed or the product of the service was acquired.

For use of services to be [taxable under] a taxable use pursuant to this subsection, the services hHTRC/HB shall98/a havePage been51 [performedshall by a person outside this state and u » r t h the product of the service was acquired inside or outside this g e l i state as the result of a transaction with a person located h r i s outside this state that would have been subject to the gross h , e h t u g receipts tax had the service or product of the service been e b l e e , gh acquired from a person with nexus with this state] acquired in n d d i = = o h a transaction the receipts from which were not subject to the l ] b ,d i a º r e r = gross receipts tax.

t e w d m a n o E.

For purposes of this section, receipts are not dsubject mto :the gross receipts tax if the person responsible for the gross receipts tax on those receipts lacked nexus in New Mexico or the receipts were exempt or allowed to be deducted pursuant to the Gross Receipts and Compensating Tax Act.

bF. r e t º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 51 - e a n e d r e l u [ A d HTRC/HB 98 subject to the gross receipts tax if the person responsible for the gross receipts tax on those receipts lacked nexus in New Mexico or the receipts were exempt or allowed to be deducted pursuant to the Gross Receipts and Compensating Tax Act.

[E.] F.

As used in this section, "taxable use" means use by a person who acquires tangible personal property, a license, a franchise or a service, and the use of which would not have qualified for an exemption or deduction pursuant to the Gross Receipts and Compensating Tax Act."»Hfl1Act." SECTION Hfl1º13. 9.»Hfl1 Hfl1º13.»Hfl1 Section 7-9-46 NMSA (being Laws 1969, Chapter 144, Section 36, as amended) is amended to read:

Section 7-9-46 NMSA 1978 (being Laws 1969, Chapter 144, Section 36, as amended) is amended to read:

DEDUCTION--GROSS RECEIPTS TAX--GOVERNMENTAL GROSS RECEIPTS--SALES TO MANUFACTURERS.-- h A.

Receipts from selling tangible personal property g o t hr may be deducted from gross receipts or from governmental gross g e i k receipts if the sale is made to a person engaged in the h r i s business of manufacturing who delivers a nontaxable transaction h , t, e u g certificate to the seller or provides alternative evidence e b l e e h pursuant to Section 7-9-43 NMSA 1978.

TheHTRC/HB buyer98/a [deliveringPage n52 dThe dbuyer i = = o h the nontaxable transaction certificate] must incorporate the l ] b ,d i a º e r i = r tangible personal property as an ingredient or component part t e w d m a n o of the product that the buyer is in the business of dmanufacturing. m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 52 - e a n e d r e l u [ A d manufacturing.

Receipts from selling tangible personal property that is a consumable and used in such a way that it is consumed in the manufacturing process of a product, provided that the tangible personal property is not a tool or equipment used to create the manufactured product, to a person engaged in the business of manufacturing that product and who delivers a nontaxable transaction certificate or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978 to the seller may be deducted [in the following percentages ] from gross receipts or from governmental gross receipts.

[(1)C. twenty percent of receipts received prior to January 1, 2014;

(2)Regarding fortythe percentdeduction allowed pursuant to Subsection B of receiptsthis receivedsection, ina calendarnontaxable yeartransaction 2014;certificate is required if the seller is a seller of electricity or fuel and is a party to an agreement with the department pursuant to Section 7-1-21.1 NMSA 1978.

(3)D. sixty percent of receipts received in calendar year 2015;

(4)The eightypurpose percent of receiptsthe receiveddeductions provided in calendarthis yearsection 2016;is to encourage manufacturing businesses to locate in New Mexico and to reduce the tax burden, including reducing pyramiding, on the tangible personal property that is consumed in the manufacturing process and that is purchased by manufacturing businesses in New Mexico.

andE. h (5) one hundred percent of receipts received g o on or after January 1, 2017.] t hr g e i k C.

RegardingThe thedepartment deductionshall allowedannually pursuantreport to hthe rHTRC/HB i98/a sPage Subsection53 Brevenue ofstabilization thisand section,tax apolicy nontaxablecommittee transactionthe haggregate ,amount t,of certificatedeductions istaken requiredpursuant ifto thethis sellersection, isthe anumber seller of etaxpayers uclaiming geach eof bthe ldeductions electricityand orany fuelother andinformation that is anecessary party to andetermine agreementthat with the edeductions eare hperforming nthe dpurposes dfor iwhich =they =are oenacted. h department pursuant to Section 7-1-21.1 NMSA 1978.

lF. ] b ,d i a º e [C.] D.

TheA purposetaxpayer ofdeducting gross receipts pursuant to this section shall report the deductionsamount deducted separately for each deduction provided in rthis isection =and rattribute tthe eamount wof dthe deduction to the appropriate authorization provided in this section isin toa encouragemanner manufacturingrequired businessesby tothe locatedepartment mthat afacilitates nthe oevaluation dby mthe :legislature of the benefit to the state of these deductions.

bG. e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 53 - e a n e d r e l u [ A d HTRC/HB 98 in New Mexico and to reduce the tax burden, including reducing pyramiding, on the tangible personal property that is consumed in the manufacturing process and that is purchased by manufacturing businesses in New Mexico.

[D.]As E.used in Subsection B of this section, "consumable" means tangible personal property that is incorporated into, destroyed, depleted or transformed in the process of manufacturing a product:

The(1) departmentincluding shallelectricity, annuallyfuels, reportwater, tomanufacturing theaids revenue stabilization and taxsupplies, policychemicals, committeegases, therepair aggregateparts, amountspares of deductions taken pursuant to this section, the number of taxpayers claiming each of the deductions and any other informationtangibles thatused is necessary to determinemanufacture thata theproduct; deductions are performing the purposes for which they are enacted.

[E.]but F.(2) excluding tangible personal property used in:

A taxpayer deducting gross receipts pursuant to this section shall report the amount deducted separately for each deduction provided in this section and attribute the amount of the deduction to the appropriate authorization provided in this section in a manner required by the department that facilitates the evaluation by the h legislature of the benefit to the state of these deductions.

g o [F.] G.

As used in Subsection B of this section, t hr g e i k "consumable" means tangible personal property that is h r i s incorporated into, destroyed, depleted or transformed in the h , t, process of manufacturing a product:

e u g e b l e e h (1) including electricity, fuels, water, n d d i = = o h manufacturing aids and supplies, chemicals, gases, repair l ] b ,d i a º e parts, spares and other tangibles used to manufacture a r i = r t e w d product;

but m a n o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 54 - e a n e d r e l u [ A d (2) excluding tangible personal property used in:

(b) the processing of natural HTRC/HB 98/a Page 54 resources, including hydrocarbons;

and (c) the preparation of meals for immediate consumption on- or off-premises." SECTION Hfl1º14. 10.»Hfl1 Hfl1º14.»Hfl1 Section 7-9-47 NMSA (being Laws 1969, Chapter 144, Section 37, as amended) is amended to read:

Section 7-9-47 NMSA 1978 (being Laws 1969, Chapter 144, Section 37, as amended) is amended to read:

The buyer [delivering the nontaxable transaction certificate] must resell the tangible personal h property or license either by itself or in combination with g o other tangible personal property or licenses in the ordinary t hr g e i k course of business." h r i s SECTION Hfl1º15. 11.»Hfl1 Hfl1º15.»Hfl1 Section 7-9-48 NMSA h , t, 1978 (being Laws 1969, Chapter 144, Section 38, as amended) is e u g e b l e e h amended to read:

nSection d7-9-48 dNMSA i1978 =(being =Laws o1969, hChapter "7-9-48.144, Section 38, as amended) is amended to read:

DEDUCTION--GROSS"7-9-48. RECEIPTS TAX--GOVERNMENTAL l ] b ,d i a º e GROSS RECEIPTS--SALE OF A SERVICE FOR RESALE.--Receipts from r i = r t e w d selling a service for resale may be deducted from gross m a n o d m :

bDEDUCTION--GROSS eRECEIPTS dTAX--GOVERNMENTAL sGROSS ºRECEIPTS--SALE oOF tA nSERVICE =FOR .219419.2AICRESALE.--Receipts Februaryfrom 15,selling 2021 (3:58pm) s k m e - 55 - e a nservice efor dresale rmay ebe ldeducted ufrom [gross A d HTRC/HB 98 receipts or from governmental gross receipts if the sale is made to a person who delivers a nontaxable transaction certificate to the seller or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978.

The buyer [deliveringmust theresell nontaxableHTRC/HB transaction98/a certificate]Page must55 resell the service in the ordinary course of business and the resale must be subject to the gross receipts tax or governmental gross receipts tax." SECTION Hfl1º16. 12.»Hfl1 Hfl1º16.»Hfl1 Section 7-9-49 NMSA (being Laws 1969, Chapter 144, Section 39, as amended) is amended to read:

Section 7-9-49 NMSA 1978 (being Laws 1969, Chapter 144, Section 39, as amended) is amended to read:

Except as otherwise provided by Subsection B of this section, receipts from selling tangible personal property and licenses may be deducted from gross receipts if the sale is h made to a person who delivers a nontaxable transaction g o certificate to the seller or provides alternative evidence t hr g e i k pursuant to Section 7-9-43 NMSA 1978.

The buyer [delivering h r i s the nontaxable transaction certificate] shall be engaged in a h , t, business that derives a substantial portion of its receipts e u g e b l e e h from leasing or selling tangible personal property or licenses n d d i = = o h of the type sold.

The buyer may not utilize the tangible l ] b ,d i a º e personal property or license in any manner other than holding r i = r t e w d m a n o it for lease or sale or leasing or selling it either by itself dor min :combination with other tangible personal property or licenses in the ordinary course of business.

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 56 - e a n e d r e l u [ A d or in combination with other tangible personal property or licenses in the ordinary course of business.

(1) furniture or appliances, the receipts from the rental or lease of which are deductible under HTRC/HB 98/a Page 56 Subsection C of Section 7-9-53 NMSA 1978;

or (3) manufactured homes." SECTION Hfl1º17. 13.»Hfl1 Hfl1º17.»Hfl1 Section 7-9-50 NMSA (being Laws 1969, Chapter 144, Section 40, as amended) is amended to read:

Section 7-9-50 NMSA 1978 (being Laws 1969, Chapter 144, Section 40, as amended) is amended to read:

Except as provided otherwise in Subsection B of this section, receipts from leasing tangible personal property or licenses may be deducted from gross receipts if the lease is made to a lessee who delivers a nontaxable transaction certificate to the lessor or provides alternative evidence h pursuant to Section 7-9-43 NMSA 1978.

The lessee [delivering g o the nontaxable transaction certificate] may not use the t hr g e i k tangible personal property or license in any manner other than h r i s for subsequent lease in the ordinary course of business.

h , t, B.

The deduction provided by this section does not e u g e b l apply to receipts from leasing:

e e h n d d i = = o h (1) furniture or appliances, the receipts from l ] b ,d i a º e the rental or lease of which are deductible under Subsection C r i = r t e w d of Section 7-9-53 NMSA 1978;

m(2) acoin-operated nmachines; o d m :

bor e(3) dmanufactured shomes." ºSECTION o18. t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 57 - e a n e d r e l u [ A d HTRC/HB 98 (2) coin-operated machines;

or (3) manufactured homes." SECTION Hfl1º 14.»Hfl1 Hfl1º18.»Hfl1 Section 7-9-51 NMSA 1978 (being Laws 1969, Chapter 144, Section 41, as amended) is amended to read:

HTRC/HB 98/a Page 57 "7-9-51.

The buyer [delivering the nontaxable transaction certificate] must incorporate the construction material as:

(1) an ingredient or component part of a h construction project that is subject to the gross receipts tax g o upon its completion or upon the completion of the overall t hr g e i k construction project of which it is a part;

h r i s (2) an ingredient or component part of a h , t, construction project that is subject to the gross receipts tax e u g e b l e e h upon the sale in the ordinary course of business of the real n d d i = = o h property upon which it was constructed;

or l ] b ,d i a º e (3) an ingredient or component part of a r i = r t e w d m a n o construction project that is located on the tribal territory of dan mIndian :nation, tribe or pueblo." SECTION 19.

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 58 - e a n e d r e l u [ A d an Indian nation, tribe or pueblo." SECTION Hfl1º15.»Hfl1 Hfl1º19.»Hfl1 Section 7-9-52 NMSA 1978 (being Laws 1969, Chapter 144, Section 42, as amended) is amended to read:

DEDUCTION--GROSS RECEIPTS TAX--SALE OF CONSTRUCTION SERVICES AND CONSTRUCTION-RELATED SERVICES TO HTRC/HB 98/a Page 58 PERSONS ENGAGED IN THE CONSTRUCTION BUSINESS.-- A.

The buyer [delivering the nontaxable transaction certificate] shall have the construction services or construction-related services directly contracted for or billed to:

(1) a construction project that is subject to h the gross receipts tax upon its completion or upon the g o completion of the overall construction project of which it is a t hr g e i k part;

h r i s (2) a construction project that is subject to h , t, the gross receipts tax upon the sale in the ordinary course of e u g e b l business of the real property upon which it was constructed;

or e e h n d d i = = o h (3) a construction project that is located on l ] b ,d i a º e the tribal territory of an Indian nation, tribe or pueblo." r i = r t e w d SECTION Hfl1º20. 16.»Hfl1 Hfl1º20.»Hfl1 Section 7-9-52.1 m a n o d m :

bSection e7-9-52.1 d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 59 - e a n e d r e l u [ A d HTRC/HB 98 NMSA 1978 (being Laws 2012, Chapter 5, Section 6) is amended to read:

DEDUCTION--GROSS RECEIPTS TAX--LEASE OF HTRC/HB 98/a Page 59 CONSTRUCTION EQUIPMENT TO PERSONS ENGAGED IN THE CONSTRUCTION BUSINESS.-- A.

The lessee [delivering the nontaxable transaction certificate] shall only use the construction equipment at the construction location of:

(1) a construction project that is subject to the gross receipts tax upon its completion or upon the h completion of the overall construction project of which it is a g o part;

t hr g e i k (2) a construction project that is subject to h r i s the gross receipts tax upon the sale in the ordinary course of h , t, business of the real property upon which it was constructed;

or e u g e b l e e h (3) a construction project that is located on n d d i = = o h the tribal territory of an Indian nation, tribe or pueblo.

l ] b ,d i a º e C.

As used in this section, "construction r i = r t e w d equipment" means equipment used on a construction project, mincluding atrash ncontainers, oportable dtoilets, mscaffolding :and temporary fencing." SECTION 21.

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 60 - e a n e d r e l u [ A d including trash containers, portable toilets, scaffolding and temporary fencing." SECTION Hfl1º 17.»Hfl1 Hfl1º21.»Hfl1 Section 7-9-54.1 NMSA 1978 (being Laws HTRC/HB 98/a Page 60 1992, Chapter 40, Section 1, as amended) is amended to read:

DEDUCTION--GROSS RECEIPTS FROM SALE OF AEROSPACE SERVICES TO CERTAIN ORGANIZATIONS.-- [A.A.

Receipts from performing or selling an aerospace service for resale may be deducted from gross receipts if the sale is made to a buyer who delivers a nontaxable transaction certificate or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978.

The buyer shall separately state the value of the aerospace service purchased in the buyer's charge for the aerospace service on its subsequent sale to an organization or, if the buyer is an organization, on the organization's subsequent sale to the United States, and the subsequent sale shall be in the ordinary course of business of selling aerospace services to an organization or to the United States.

B.

and (2) "organization" means an organization described in Subsection A of Section 7-9-29 NMSA 1978 other than a prime contractor operating facilities in New Mexico designated as a national laboratory by act of congress.congress." SECTION 22.

B.]Section A.7-9-56.3 NMSA 1978 (being Laws HTRC/HB 98/a Page 61 2003, Chapter 232, Section 1, as amended) is amended to read:

Receipts"7-9-56.3. from performing or selling [on or after October 1, 1995] an aerospace service for resale may be deducted from gross receipts if the sale is made to a buyer who h delivers a nontaxable transaction certificate or provides g o alternative evidence pursuant to Section 7-9-43 NMSA 1978.

TheDEDUCTION--GROSS tRECEIPTS--TRADE-SUPPORT hrCOMPANY gIN eA iBORDER kZONE.-- buyerA. [delivering the nontaxable transaction certificate ] shall h r i s separately state the value of the aerospace service purchased h , t, in the buyer's charge for the aerospace service on its e u g e b l subsequent sale to an organization or, if the buyer is an e e h n d d i = = o h organization, on the organization's subsequent sale to the l ] b ,d i a º e United States, and the subsequent sale shall be in the ordinary r i = r t e w d course of business of selling aerospace services to an m a n o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 61 - e a n e d r e l u [ A d HTRC/HB 98 organization or to the United States.

[C.

A percentage of the receipts from selling aerospace services to or for resale to an organization may be deducted from gross receipts in accordance with the following table:

Deductible Receipts During the Period Percentage October 1, 1995 through September 30, 1996 10% October 1, 1996 through September 30, 1997 25% October 1, 1997 through September 30, 1999 50% October 1, 1999 and thereafter 100%.] B.

As used in this section:

(1) "aerospace services" means research and development services sold to or for resale to an organization for resale by the organization to the United States air force;

and h (2) "organization" means an organization g o described in Subsection A of Section 7-9-29 NMSA 1978 other t hr g e i k than a prime contractor operating facilities in New Mexico h r i s designated as a national laboratory by act of congress." h , t, SECTION Hfl1º18.»Hfl1 Hfl1º22.»Hfl1 Section 7-9-56.3 e u g e b l e e h NMSA 1978 (being Laws 2003, Chapter 232, Section 1, as amended) n d d i = = o h is amended to read:

l ] b ,d i a º e "7-9-56.3.

DEDUCTION--GROSS RECEIPTS--TRADE-SUPPORT r i = r t e w d m a n o COMPANY IN A BORDER ZONE.-- d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 62 - e a n e d r e l u [ A d A.

The department shall compile an annual report on the deduction created pursuant to this section that shall h include the number of taxpayers approved by the department to g o receive the deduction, the aggregate amount of deductions t hr g e i k approved and any other information necessary to evaluate the hHTRC/HB r98/a iPage s62 effectiveness of the deduction.

Beginning in 2016 and every h , t, four years thereafter that the deduction is in effect, the e u g e b l department shall compile and present the annual reports to the e e h n d d i = = o h revenue stabilization and tax policy committee and the l ] b ,d i a º e legislative finance committee with an analysis of the r i = r t e w d effectiveness and cost of the deduction.

mD. a n o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 63 - e a n e d r e l u [ A d HTRC/HB 98 D.

[(1)] (2) "employee" means an individual, other than an individual who:

[(a)(a) bearsis anya dependent of the relationshipsemployer; described in Paragraphs (1) through (8) of 26 U.S.C.

Section 152(a) to the employer or, if the employer is a corporation, to an individual who owns, directly or indirectly, more than fifty percent in value of the outstanding stock of the corporation or, if the employer is an entity other than a corporation, to an individual who owns, directly or indirectly, more than fifty percent of the capital and profits interests in the entity;

(b) if the employer is an estate or trust, is a grantor, beneficiary or fiduciary of the estate or h trust or is an individual who bears any of the relationships u » r described in Paragraphs (1) through (8) of 26 U.S.C.

Section t h g e 152(a) to a grantor, beneficiary or fiduciary of the estate or l i h r i s trust;

or h , e h (c) is a dependent, as that term is t u g e b l described in 26 U.S.C.

Section 152(a)(9), of the employer, or, e e , gh n d d i = = o h if the taxpayer is a corporation, of an individual who owns, l ] b ,d i a º r directly or indirectly, more than fifty percent in value of the e r = t e w d outstanding stock of the corporation or, if the employer is an m a n o d m :

b r e t º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 64 - e a n e d r e l u [ A d entity other than a corporation, an individual who owns, directly or indirectly, more than fifty percent of the capital and profits interests in the entity or, if the employer is an estate or trust, of a grantor, beneficiary or fiduciary of the estate or trust;] (a) is a dependent of the employer;

[(2)]HTRC/HB 98/a Page 63 (3) "port of entry" means an h international port of entry in New Mexico at which customs g o services are provided by United States customs and border t hr g e i k protection;

and h r i s [(3)] (4) "trade-support company" means a h , t, customs brokerage firm or a freight forwarder." e u g e b l SECTION Hfl1º23. 19.»Hfl1 Hfl1º23.»Hfl1 Section 7-9-60 NMSA e e h n d d i = = o h 1978 (being Laws 1970, Chapter 12, Section 4, as amended) is l ] b ,d i a º e amended to read:

rSection i7-9-60 =NMSA r1978 t(being eLaws w1970, dChapter "7-9-60.12, Section 4, as amended) is amended to read:

DEDUCTION--GROSS"7-9-60. RECEIPTS TAX--GOVERNMENTAL m a n o d m :

bDEDUCTION--GROSS eRECEIPTS dTAX--GOVERNMENTAL s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 65 - e a n e d r e l u [ A d HTRC/HB 98 GROSS RECEIPTS TAX--SALES TO CERTAIN ORGANIZATIONS.-- A.

The buyer [delivering the nontaxable transaction certificate] shall employ the tangible personal property in the conduct of functions described in Section 501(c)(3) and shall not employ the tangible personal property in the conduct of an unrelated trade or business as defined in Section 513 of the United States Internal Revenue Code of 1986, as amended or renumbered.

The deduction provided by this section does not apply to receipts from selling construction material, excluding h tangible personal property, whether removable or non-removable,HTRC/HB u98/a »Page r64 non-removable, that is or would be classified for depreciation purposes as t h g e three-year property, five-year property, seven-year property or l i h r i s ten-year property, including indirect costs related to the h , e h asset basis, by Section 168 of the Internal Revenue Code of t u g e b l 1986, as that section may be amended or renumbered, or from e e , gh n d d i = = o h selling metalliferous mineral ore;

except that receipts from l ] b ,d i a º r selling construction material or from selling metalliferous e r = t e w d mineral ore to a 501(c)(3) organization that is organized for mthe apurpose nof oproviding dhomeownership mopportunities :to low-income families may be deducted from gross receipts.

b r e t º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 66 - e a n e d r e l u [ A d the purpose of providing homeownership opportunities to low- income families may be deducted from gross receipts.

For the purposes of this section, "501(c)(3) organization" means an organization that has been granted exemption from the federal income tax by the United States commissioner of internal revenue as an organization described in Section 501(c)(3) of the United States Internal Revenue Code of 1986, as amended or renumbered." SECTIONHTRC/HB Hfl1º98/a 20.»Hfl1Page Hfl1º24.»Hfl165 SectionSECTION 7-9-77.124. NMSA 1978 (being Laws 1998, Chapter 96, Section 1, as amended) is amended to read:

hSection "7-9-77.1.7-9-77.1 NMSA 1978 (being Laws 1998, Chapter 96, Section 1, as amended) is amended to read:

DEDUCTION--GROSS"7-9-77.1. RECEIPTS TAX--CERTAIN MEDICAL g o AND HEALTH CARE SERVICES.-- t hr g e i k A.

ReceiptsDEDUCTION--GROSS ofRECEIPTS aTAX--CERTAIN healthMEDICAL careAND practitionerHEALTH orCARE anSERVICES.-- hA. r i s association of health care practitioners from payments by the h , t, United States government or any agency thereof for provision of e u g e b l medical and other health services by a health care practitioner e e h n d d i = = o h or of medical or other health and palliative services by l ] b ,d i a º e hospices or nursing homes to medicare beneficiaries pursuant to r i = r t e w d the provisions of Title 18 of the federal Social Security Act m a n o d m :

bReceipts eof da shealth ºcare opractitioner tor nan =association .219419.2AICof Februaryhealth 15,care 2021practitioners (3:58pm)from spayments kby mthe eUnited -States 67government -or eany agency thereof for provision of medical and other health services by a nhealth ecare dpractitioner ror eof lmedical uor [other Ahealth dand HTRC/HBpalliative 98services by hospices or nursing homes to medicare beneficiaries pursuant to the provisions of Title 18 of the federal Social Security Act may be deducted from gross receipts.

Receipts of a health care practitioner or an association of health care practitioners from payments by or on behalf of the Indian health service of the United States department of health and human services for provision of medical and other health services by medical doctors and osteopathic physicians to covered beneficiaries may be HTRC/HB 98/a Page 66 deducted from gross receipts.

Receipts of a clinical laboratory from payments by the United States government or any agency thereof for h medical services provided by the clinical laboratory to u » r medicare beneficiaries pursuant to the provisions of Title 18 t h g e of the federal Social Security Act may be deducted from gross l i h r i s receipts.

h , e h E.

Receipts of a home health agency from payments t u g e b l by the United States government or any agency thereof for e e , gh n d d i = = o h medical, other health and palliative services provided by the l ] b ,d i a º r home health agency to medicare beneficiaries pursuant to the e r = t e w d provisions of Title 18 of the federal Social Security Act may mbe adeducted nfrom ogross dreceipts. m :

b r e t º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 68 - e a n e d r e l u [ A d be deducted from gross receipts.

A taxpayer who has receipts that are deductible pursuant to this section and Section 7-9-93 NMSA 1978 shall deduct the receipts under this section prior to calculating the receipts that may be HTRC/HB 98/a Page 67 deducted pursuant to Section 7-9-93 NMSA 1978.

The department shall compile an annual report on the deductions created pursuant to this section that shall include the number of taxpayers approved by the department to receive each deduction, the aggregate amount of deductions approved and any other information necessary to evaluate the h effectiveness of the deductions.

The department shall compile g o and present the annual reports to the revenue stabilization and t hr g e i k tax policy committee and the legislative finance committee with h r i s an analysis of the effectiveness and cost of the deductions and h , t, whether the deductions are providing a benefit to the state.

e u g e b l I.

e e h n d d i = = o h (1) "association of health care practitioners" l ] b ,d i a º e means a corporation, unincorporated business entity or other r i = r t e w d legal entity organized by, owned by or employing one or more mhealth acare npractitioners; o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 69 - e a n e d r e l u [ A d HTRC/HB 98 health care practitioners;

or (b) a health maintenance organization, hospital, hospice, nursing home or an entity that is solely HTRC/HB 98/a Page 68 an outpatient facility or intermediate care facility licensed pursuant to the Public Health Act;

[(1)] (2) "clinical laboratory" means a laboratory accredited pursuant to 42 USCA 263a;

[(2)] (3) "dialysis facility" means an end-end-stage stage renal disease facility as defined pursuant to 42 C.F.R.

[(3)] (4) "health care practitioner" means:

h (a) an athletic trainer licensed g o pursuant to the Athletic Trainer Practice Act;

t hr g e i k (b) an audiologist licensed pursuant to h r i s the Speech-Language Pathology, Audiology and Hearing Aid h , t, Dispensing Practices Act;

e u g e b l e e h (c) a chiropractic physician licensed n d d i = = o h pursuant to the Chiropractic Physician Practice Act;

l ] b ,d i a º e (d) a counselor or therapist r i = r t e w d practitioner licensed pursuant to the Counseling and Therapy mPractice aAct; n o d m :

b e d s º o t n = .219419.2AIC February 15, 2021 (3:58pm) s k m e - 70 - e a n e d r e l u [ A d Practice Act;

HTRC/HB 98/a Page 69 (h) a massage therapist licensed pursuant to the Massage Therapy Practice Act;

(m) an osteopathic physician licensed h pursuant to the Osteopathic Medicine Act;

g o (n) a pharmacist licensed pursuant to t hr g e i k the Pharmacy Act;

h r i s (o) a physical therapist licensed h , t, pursuant to the Physical Therapy Act;

e u g e b l (p) a physician licensed pursuant to the e e h n d d i = = o h Medical Practice Act;

l ] b ,d i a º e (q) a podiatrist licensed pursuant to r i = r t e w d the Podiatry Act;

m(r) a npsychologist olicensed dpursuant mto :the Professional Psychologist Act;

b(s) ea dradiologic stechnologist ºlicensed opursuant tto nthe =Medical .219419.2AICImaging Februaryand 15,Radiation 2021Therapy (3:58pm)Health s k m e - 71 - e a n e d r e l u [ A d HTRC/HB 9898/a (r)Page a70 psychologistand licensedSafety pursuant to the Professional Psychologist Act;

(s) a radiologic technologist licensed pursuant to the Medical Imaging and Radiation Therapy Health and Safety Act;

[(4)] (5) "home health agency" means a for-for-profit profit entity that is licensed by the department of health and certified by the federal centers for medicare and medicaid services as a home health agency and certified to provide h medicare services;

g o [(5)] (6) "hospice" means a for-profit entity t hr g e i k licensed by the department of health as a hospice and certified h r i s to provide medicare services;

h , t, [(6)] (7) "nursing home" means a for-profit e u g e b l e e h entity licensed by the department of health as a nursing home n d d i = = o h and certified to provide medicare services;

and l ] b ,d i a º e [(7)] (8) "TRICARE program" means the program r i = r t e w d defined in 10 U.S.C.