Bill > HB299

This bill creates a temporary deduction from gross receipts tax for private, for-profit child daycare and pre-kindergarten service providers in New Mexico, effective from July 1, 2016, to July 1, 2024. This means that the portion of their income received from the state for providing these services will not be subject to the gross receipts tax, which is a tax on the total amount of money received from sales of goods and services. The purpose of this deduction is to provide these for-profit providers with the same tax benefit as non-profit providers and to encourage the expansion of child care and pre-kindergarten services. Providers claiming this deduction must report it separately, and the state's tax department will produce an annual report starting in 2017 to assess the deduction's effectiveness and cost, which will be presented to legislative committees.