NATIONAL RESEARCH FACILITY GROSS RECEIPTS

HB 504 amends New Mexico tax law to exclude gross receipts from prime contractors operating specific facilities from certain manufacturing-related tax deductions. It directly affects national laboratories designated by Congress and state-owned research facilities in New Mexico, preventing them from claiming deductions normally available to manufacturers. The bill adds a new exception to existing tax deduction rules (Sections 7-9-46 and 7-9-46.1), specifying that receipts from these facilities cannot be deducted as they would be for other manufacturers. This change aims to align tax treatment for federal and state research entities with standard manufacturing deduction rules. The bill was referred to committees but was postponed indefinitely in June 2025.