New Mexico 2025 Regular Session

New Mexico Senate Bill SB211 Compare Versions

Only one version of the bill is available at this time.

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28	28	SENATE BILL 211
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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37	37	NEW
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39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Michael Padilla and William P. Soules
48	48	AN ACT
49	49	RELATING TO TAXATION; CREATING THE QUANTUM FACILITY
50	50	INFRASTRUCTURE INCOME TAX CREDIT AND QUANTUM FACILITY
51	51	INFRASTRUCTURE CORPORATE INCOME TAX CREDIT; PROVIDING A DELAYED
52	52	REPEAL.
53	53	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
54	54	SECTION 1. A new section of the Income Tax Act is enacted
55	55	to read:
56	56	"[NEW MATERIAL] QUANTUM FACILITY INFRASTRUCTURE INCOME TAX
57	57	CREDIT.--
58	58	A. For taxable years ending prior to January 1,
59	59	2035, a taxpayer who is not a dependent of another individual
60	60	and who makes at least three million dollars ($3,000,000) in
61	61	qualified expenditures for infrastructure for a quantum
62	62	facility located in New Mexico may claim a credit against the
63	63	.228774.5GLG underscored material = new
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90	90	taxpayer's tax liability imposed pursuant to the Income Tax Act
91	91	in the amount provided in Subsection B of this section. The
92	92	credit provided by this section may be referred to as the
93	93	"quantum facility infrastructure income tax credit".
94	94	B. Subject to the total aggregate amount allowed
95	95	pursuant to Subsection D of this section, the amount of credit
96	96	shall be in an amount equal to thirty percent of the amount of
97	97	the qualified expenditures made by the taxpayer for
98	98	infrastructure for a quantum facility, not to exceed fifty
99	99	million dollars ($50,000,000) per quantum facility.
100	100	C. Prior to incurring a qualified expenditure, a
101	101	taxpayer shall apply for preliminary certification of
102	102	eligibility for the credit from the economic development
103	103	department on forms and in the manner prescribed by that
104	104	department. Such preliminary certification shall be limited to
105	105	confirming that the qualified expenditures proposed to be made
106	106	by the taxpayer will in whole or in part be used to provide
107	107	infrastructure for a quantum facility and an estimate of the
108	108	amount of credit for which the taxpayer may be eligible. Only
109	109	one certificate of eligibility shall be issued for a quantum
110	110	facility, regardless of ownership of the facility.
111	111	D. Within twelve months of completion of
112	112	construction of a quantum facility, the taxpayer shall seek
113	113	final certification from the economic development department.
114	114	The maximum aggregate amount of quantum facility infrastructure
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143	143	income tax credits and quantum facility infrastructure
144	144	corporate income tax credits that may be certified shall not
145	145	exceed seventy-five million dollars ($75,000,000); provided
146	146	that the maximum aggregate amount shall be increased to one
147	147	hundred fifty million dollars ($150,000,000) in the calendar
148	148	year the state is awarded a United States national science
149	149	foundation regional innovation engines award for quantum
150	150	technologies. An application for final certification shall
151	151	include information required by the economic development
152	152	department to determine eligibility for the credit, including
153	153	information substantiating qualified expenditures. If that
154	154	department determines that the taxpayer meets the requirements
155	155	of this section, that department shall issue a dated
156	156	certificate of eligibility to the taxpayer providing the amount
157	157	of credit for which the taxpayer is eligible and the taxable
158	158	years in which the credit may be claimed. The economic
159	159	development department shall provide the department with the
160	160	certificates of eligibility issued pursuant to this subsection
161	161	in secure electronic format at regularly agreed-upon intervals.
162	162	E. A taxpayer allowed to claim the credit shall
163	163	claim the credit in a manner required by the department. The
164	164	credit shall be claimed within one year of receiving final
165	165	certification from the economic development department. The
166	166	taxpayer shall claim the amount certified and approved against
167	167	the taxpayer's income tax liability. Any amount of credit that
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196	196	exceeds the taxpayer's income tax liability shall be refunded
197	197	to the taxpayer.
198	198	F. Married individuals filing separate returns for
199	199	a taxable year for which they could have filed a joint return
200	200	may each claim only one-half of the credit that would have been
201	201	claimed on a joint return.
202	202	G. A taxpayer may be allocated the right to claim
203	203	the credit in a proportion to the taxpayer's ownership interest
204	204	if the taxpayer owns an interest in a business entity that is
205	205	taxed for federal income tax purposes as a partnership or
206	206	limited liability company and that business entity has met all
207	207	of the requirements to be eligible for the credit. The total
208	208	credit claimed by all members of the partnership or limited
209	209	liability company shall not exceed the allowable credit
210	210	pursuant to this section.
211	211	H. As used in this section:
212	212	(1) "qualified expenditure" means an
213	213	expenditure made by a taxpayer for land and rent paid or
214	214	incurred for land, improvements, buildings or infrastructure
215	215	required for a quantum facility, but not including any
216	216	expenditure for property that is owned by a municipality or
217	217	county in connection with an industrial revenue bond project,
218	218	property for which the taxpayer has received any credit
219	219	pursuant to the Investment Credit Act or property that was
220	220	owned by the taxpayer or an affiliate before January 1, 2025.
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249	249	If a "qualified expenditure" is an allocation of an
250	250	expenditure, the cost accounting methodology used for the
251	251	allocation of the expenditure shall be the same cost accounting
252	252	methodology used by the taxpayer in its other business
253	253	activities;
254	254	(2) "quantum facility" means a facility in New
255	255	Mexico at which research and development in quantum technology
256	256	is conducted, other than a facility operated by a taxpayer for
257	257	the United States or any agency, department or instrumentality
258	258	thereof; and
259	259	(3) "quantum technology" means technology that
260	260	relies on quantum superposition or quantum entanglement or
261	261	innovations that enable those technologies."
262	262	SECTION 2. A new section of the Corporate Income and
263	263	Franchise Tax Act is enacted to read:
264	264	"[NEW MATERIAL] QUANTUM FACILITY INFRASTRUCTURE CORPORATE
265	265	INCOME TAX CREDIT.--
266	266	A. For taxable years ending prior to January 1,
267	267	2035, a taxpayer that makes at least three million dollars
268	268	($3,000,000) in qualified expenditures for infrastructure for a
269	269	quantum facility located in New Mexico may claim a credit
270	270	against the taxpayer's tax liability imposed pursuant to the
271	271	Corporate Income and Franchise Tax Act in the amount provided
272	272	in Subsection B of this section. The credit provided by this
273	273	section may be referred to as the "quantum facility
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302	302	infrastructure corporate income tax credit".
303	303	B. Subject to the total aggregate amount allowed
304	304	pursuant to Subsection D of this section, the amount of credit
305	305	shall be in an amount equal to thirty percent of the amount of
306	306	the qualified expenditures made by the taxpayer for
307	307	infrastructure for a quantum facility, not to exceed fifty
308	308	million dollars ($50,000,000) per quantum facility.
309	309	C. Prior to incurring a qualified expenditure, a
310	310	taxpayer shall apply for preliminary certification of
311	311	eligibility for the credit from the economic development
312	312	department on forms and in the manner prescribed by that
313	313	department. Such preliminary certification shall be limited to
314	314	confirming that the qualified expenditures proposed to be made
315	315	by the taxpayer will in whole or in part be used to provide
316	316	infrastructure for a quantum facility and an estimate of the
317	317	amount of credit for which the taxpayer may be eligible. Only
318	318	one certificate of eligibility shall be issued for a quantum
319	319	facility, regardless of ownership of the facility.
320	320	D. Within twelve months of completion of
321	321	construction of a quantum facility, the taxpayer shall seek
322	322	final certification from the economic development department.
323	323	The maximum aggregate amount of quantum facility infrastructure
324	324	income tax credits and quantum facility infrastructure
325	325	corporate income tax credits that may be certified shall not
326	326	exceed seventy-five million dollars ($75,000,000); provided
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355	355	that the maximum aggregate amount shall be increased to one
356	356	hundred fifty million dollars ($150,000,000) in the calendar
357	357	year the state is awarded a United States national science
358	358	foundation regional innovation engines award for quantum
359	359	technologies. An application for final certification shall
360	360	include information required by the economic development
361	361	department to determine eligibility for the credit, including
362	362	information substantiating qualified expenditures. If that
363	363	department determines that the taxpayer meets the requirements
364	364	of this section, that department shall issue a dated
365	365	certificate of eligibility to the taxpayer providing the amount
366	366	of credit for which the taxpayer is eligible and the taxable
367	367	years in which the credit may be claimed. The economic
368	368	development department shall provide the department with the
369	369	certificates of eligibility issued pursuant to this subsection
370	370	in secure electronic format at regularly agreed-upon intervals.
371	371	E. A taxpayer allowed to claim the credit shall
372	372	claim the credit in a manner required by the department. The
373	373	credit shall be claimed within one year of receiving final
374	374	certification from the economic development department. The
375	375	taxpayer shall claim the amount certified and approved against
376	376	the taxpayer's income tax liability. Any amount of credit that
377	377	exceeds the taxpayer's income tax liability shall be refunded
378	378	to the taxpayer.
379	379	F. As used in this section:
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408	408	(1) "qualified expenditure" means an
409	409	expenditure made by a taxpayer for land and rent paid or
410	410	incurred for land, improvements, buildings or infrastructure
411	411	required for a quantum facility, but not including any
412	412	expenditure for property that is owned by a municipality or
413	413	county in connection with an industrial revenue bond project,
414	414	property for which the taxpayer has received any credit
415	415	pursuant to the Investment Credit Act or property that was
416	416	owned by the taxpayer or an affiliate before January 1, 2025.
417	417	If a "qualified expenditure" is an allocation of an
418	418	expenditure, the cost accounting methodology used for the
419	419	allocation of the expenditure shall be the same cost accounting
420	420	methodology used by the taxpayer in its other business
421	421	activities;
422	422	(2) "quantum facility" means a facility in New
423	423	Mexico at which research and development in quantum technology
424	424	is conducted, other than a facility operated by a taxpayer for
425	425	the United States or any agency, department or instrumentality
426	426	thereof; and
427	427	(3) "quantum technology" means technology that
428	428	relies on quantum superposition or quantum entanglement or
429	429	innovations that enable those technologies."
430	430	SECTION 3. DELAYED REPEAL.--Sections 1 and 2 of this act
431	431	are repealed effective January 1, 2036.
432	432	SECTION 4. APPLICABILITY.--The provisions of this act
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461	461	apply to taxable years beginning on or after January 1, 2025.
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