Bill > HB230

This bill amends the Technology Jobs Tax Credit Act to include "and Research and Development" in its title and purpose, aiming to foster a favorable tax environment for technology businesses engaged in research, development, and experimentation to boost employment and wages in New Mexico. Key changes include an increase in the basic and additional tax credit percentages from four to five percent of qualified expenditures, which are defined as costs associated with qualified research at a qualified facility, excluding certain previously credited or reimbursed expenses. The bill also introduces a new category for "qualified research and development small business" with specific employee and expenditure limits, and clarifies definitions for terms like "annual payroll expense" and "base payroll expense" to better account for business reorganizations. Furthermore, it modifies how credits can be claimed, allowing basic credits to be applied against compensating, withholding, or gross receipts taxes (excluding local option gross receipts tax) and additional credits against income or corporate income taxes, with provisions for refunds for qualified small businesses and a three-year carryforward period for unclaimed credits. The bill also mandates taxpayer reporting to ensure compliance and introduces a temporary provision for transitioning existing research and development small business tax credits and updates references to the act.