Bill > SB247

This bill, effective July 1, 2016, creates a new deduction for the Gross Receipts and Compensating Tax Act in New Mexico, allowing businesses to subtract the value of components and construction services used to build broadband telecommunications network facilities from their taxable receipts until July 1, 2026. Broadband telecommunications network facilities are defined as equipment and infrastructure, like cables and switching gear, that provide internet access at speeds of at least ten megabits per second for downloads and one megabit per second for uploads, and are owned and used by an internet service provider. The purpose of these deductions is to encourage the expansion of broadband services across New Mexico, and taxpayers claiming them must report the deduction amounts separately, while the department will produce annual reports to assess the effectiveness and cost of this tax incentive.