EXTEND TECHNOLOGY READINESS GRT CREDIT

HB0082

HOUSE BILL 82

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Joseph L. Sanchez
and
Joshua N. Hernandez

AN ACT

RELATING TO TAXATION; EXTENDING THE TECHNOLOGY READINESS GROSS
RECEIPTS TAX CREDIT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
Section 7-9-96.3 NMSA 1978 (being Laws 2020,
Chapter 22, Section 1, as amended) is amended to read:

"7-9-96.3. TECHNOLOGY READINESS GROSS RECEIPTS TAX
CREDIT.--

A. Prior to July 1, [
2027
]
2035
, a taxpayer that is
a national laboratory that provides technology readiness
assistance to a business that is registered to do business in
New Mexico and has licensed a technology from the national
laboratory or is a participant in a cooperative research and
development agreement with the national laboratory may claim a
tax credit against the taxpayer's gross receipts tax liability
imposed pursuant to the Gross Receipts and Compensating Tax
Act, excluding any local option gross receipts tax liability.
The tax credit provided by this section may be referred to as
the "technology readiness gross receipts tax credit".

B. The purpose of the technology readiness gross
receipts tax credit is to help businesses in New Mexico achieve
technology maturation of the businesses' technologies developed
at New Mexico national laboratories and increase economic
development in the state.

C. The amount of a technology readiness gross
receipts tax credit shall equal the amount of qualified
expenditures incurred by a national laboratory to provide
technology readiness assistance to a business, not to exceed
one hundred fifty thousand dollars ($150,000) in a fiscal year
per business; provided that the annual aggregate amount of
credits allowed per national laboratory per fiscal year shall
be limited to [
one million dollars ($1,000,000)
]:

(1) beginning on July 1, 2026 and prior to
July 1, 2027, two million dollars ($2,000,000);

(2) beginning on July 1, 2027 and prior to
July 1, 2028, three million dollars ($3,000,000);

(3) beginning on July 1, 2028 and prior to
July 1, 2029, four million dollars ($4,000,000); and

(4) beginning on July 1, 2029 and prior to
July 1, 2035, five million dollars ($5,000,000)
.

D. A taxpayer may claim a technology readiness
gross receipts tax credit for the taxable period in which the
taxpayer provides technology assistance pursuant to this
section. That portion of a technology readiness gross receipts
tax credit that exceeds a taxpayer's tax liability in the
taxable period in which the credit is claimed may be carried
forward to succeeding taxable periods.

E. To receive a technology readiness gross receipts
tax credit, a taxpayer shall apply to the department on forms
and in the manner required by the department. The application
shall include the following:

(1) certification from each business that
received technology readiness assistance that:

(a) the assistance was made in good
faith to help the business demonstrate the feasibility of real-world application of the business's technology; and

(b) the assistance was not otherwise
available to the business at a reasonable cost through private
industry;

(2) evidence that the business that received
the technology readiness assistance is registered to do
business in New Mexico; and

(3) evidence that the business's technology is
a licensed technology from the national laboratory or the
business is a participant in a cooperative research and
development agreement with the national laboratory.

F. In addition to the requirements in Subsection E
of this section, a national laboratory shall:

(1) create forms for technology readiness
assistance requests and completion of technology maturation;

(2) establish a technology readiness
assistance program that will assist businesses to reach
technology maturation;

(3) consult with the secretary of economic
development to seek advice on improvements in the operation of
the technology readiness assistance program; and

(4) establish a methodology to use state
educational institutions that have demonstrated the capability
to provide technology readiness assistance.

G. A taxpayer shall not claim both a technology
readiness gross receipts tax credit and a credit pursuant to
the Laboratory Partnership with Small Business Tax Credit Act
for assistance provided to the same business in the same
taxable period.

H. If more than one national laboratory provides
technology readiness assistance to a business, the national
laboratories shall not claim a technology readiness gross
receipts tax credit until coordination is developed between the
national laboratories providing the assistance that generates a
joint operational plan to ensure that:

(1) the assistance provided by each national
laboratory suits the business's needs and challenges; and

(2) the combined claims for a technology
readiness gross receipts tax credit will not exceed the
limitations provided in Subsection C of this section.

I. A national laboratory that claims a technology
readiness gross receipts tax credit shall submit an annual
report in writing to the department, the economic development
department and an appropriate legislative interim committee.
If more than one national laboratory claims a technology
readiness gross receipts tax credit, those laboratories shall
jointly submit an annual report. The annual report shall
summarize activities related to and the results of the
technology readiness assistance programs created by the
national laboratories and shall include:

(1) a description of each business's
technology that has received technology readiness assistance,
including progress toward technology maturation and whether,
and to what extent, the business is still doing business in New
Mexico;

(2) results of surveys of businesses to which
technology readiness assistance is provided;

(3) the total amount of the technology
readiness gross receipts tax credits received in the previous
fiscal year; and

(4) an economic impact study performed by an
uninterested third party.

J. At any time after receipt of an annual report
required pursuant to this section, the department or the
economic development department may provide written
instructions to a national laboratory identifying future
improvements in the national laboratory's technology readiness
assistance program for which it receives a technology readiness
gross receipts tax credit.

K. As used in this section:

(1) "cooperative research and development
agreement" means any agreement between a national laboratory
and a non-federal party under which the laboratory provides
personnel, services, facilities, equipment, intellectual
property or other resources and a non-federal party provides
funds, personnel, services, facilities, equipment, intellectual
property or other resources toward the conduct of specified
research or development efforts that are consistent with the
missions of the laboratory;

(2) "national laboratory" means a prime
contractor designated as a national laboratory by act of
congress that is operating a facility in New Mexico;

(3) "qualified expenditure" means an
expenditure by a national laboratory in providing technology
readiness assistance and is limited to the following:

(a) employee salaries, wages, benefits
and employer payroll taxes;

(b) administrative costs related
directly to the provision of technology readiness assistance;

(c) in-state travel expenses, including
per diem and mileage at the internal revenue service standard
rate; and

(d) supplies and services of contractors
that are related to the provision of technology readiness
assistance;

(4) "state educational institution" means a
state educational institution named in Article 12, Section 11
of the constitution of New Mexico;

(5) "technology maturation" means technology
that has been developed to a stage that results in a prototype
or demonstration of the feasibility of real-world application
of the technology; and

(6) "technology readiness assistance" means
assistance provided to a business by a national laboratory with
the intent to help the business's technology achieve technology
maturation."

SECTION 2.
EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2026.

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