Bill > SB502

This bill establishes a ten-year deduction from gross receipts tax for certain goods and services sold to the U.S. Department of Defense (DOD) related to directed energy and satellites, aiming to boost New Mexico's high-technology sector. Specifically, it allows a deduction for receipts from qualified contractors selling qualified research and development services and qualified directed energy and satellite-related inputs under a contract with the DOD, effective from July 1, 2015, through June 30, 2025. "Directed energy" refers to systems using the frequency spectrum, while "inputs" encompass various components and services for directed energy or satellites, and "qualified contractors" are entities other than national laboratories or their operators, unless the receipts are unrelated to operating the lab. Taxpayers must report these deductions, and the department will compile this information to report annually to legislative committees on the program's benefits, with a review and recommendation on its continuation by December 1, 2022.