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SENATE BILL 211
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Michael Padilla and William P. Soules
AN ACT
RELATING TO TAXATION; CREATING THE QUANTUM FACILITY
INFRASTRUCTURE INCOME TAX CREDIT AND QUANTUM FACILITY
INFRASTRUCTURE CORPORATE INCOME TAX CREDIT; PROVIDING A DELAYED
REPEAL.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Income Tax Act is enacted
to read:
"[NEW MATERIAL] QUANTUM FACILITY INFRASTRUCTURE INCOME TAX
CREDIT.--
A. For taxable years ending prior to January 1,
2035, a taxpayer who is not a dependent of another individual
and who makes at least three million dollars ($3,000,000) in
qualified expenditures for infrastructure for a quantum
facility located in New Mexico may claim a credit against the
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taxpayer's tax liability imposed pursuant to the Income Tax Act
in the amount provided in Subsection B of this section. The
credit provided by this section may be referred to as the
"quantum facility infrastructure income tax credit".
B. Subject to the total aggregate amount allowed
pursuant to Subsection D of this section, the amount of credit
shall be in an amount equal to thirty percent of the amount of
the qualified expenditures made by the taxpayer for
infrastructure for a quantum facility, not to exceed fifty
million dollars ($50,000,000) per quantum facility.
C. Prior to incurring a qualified expenditure, a
taxpayer shall apply for preliminary certification of
eligibility for the credit from the economic development
department on forms and in the manner prescribed by that
department. Such preliminary certification shall be limited to
confirming that the qualified expenditures proposed to be made
by the taxpayer will in whole or in part be used to provide
infrastructure for a quantum facility and an estimate of the
amount of credit for which the taxpayer may be eligible. Only
one certificate of eligibility shall be issued for a quantum
facility, regardless of ownership of the facility.
D. Within twelve months of completion of
construction of a quantum facility, the taxpayer shall seek
final certification from the economic development department.
The maximum aggregate amount of quantum facility infrastructure
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income tax credits and quantum facility infrastructure
corporate income tax credits that may be certified shall not
exceed seventy-five million dollars ($75,000,000); provided
that the maximum aggregate amount shall be increased to one
hundred fifty million dollars ($150,000,000) in the calendar
year the state is awarded a United States national science
foundation regional innovation engines award for quantum
technologies. An application for final certification shall
include information required by the economic development
department to determine eligibility for the credit, including
information substantiating qualified expenditures. If that
department determines that the taxpayer meets the requirements
of this section, that department shall issue a dated
certificate of eligibility to the taxpayer providing the amount
of credit for which the taxpayer is eligible and the taxable
years in which the credit may be claimed. The economic
development department shall provide the department with the
certificates of eligibility issued pursuant to this subsection
in secure electronic format at regularly agreed-upon intervals.
E. A taxpayer allowed to claim the credit shall
claim the credit in a manner required by the department. The
credit shall be claimed within one year of receiving final
certification from the economic development department. The
taxpayer shall claim the amount certified and approved against
the taxpayer's income tax liability. Any amount of credit that
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exceeds the taxpayer's income tax liability shall be refunded
to the taxpayer.
F. Married individuals filing separate returns for
a taxable year for which they could have filed a joint return
may each claim only one-half of the credit that would have been
claimed on a joint return.
G. A taxpayer may be allocated the right to claim
the credit in a proportion to the taxpayer's ownership interest
if the taxpayer owns an interest in a business entity that is
taxed for federal income tax purposes as a partnership or
limited liability company and that business entity has met all
of the requirements to be eligible for the credit. The total
credit claimed by all members of the partnership or limited
liability company shall not exceed the allowable credit
pursuant to this section.
H. As used in this section:
(1) "qualified expenditure" means an
expenditure made by a taxpayer for land and rent paid or
incurred for land, improvements, buildings or infrastructure
required for a quantum facility, but not including any
expenditure for property that is owned by a municipality or
county in connection with an industrial revenue bond project,
property for which the taxpayer has received any credit
pursuant to the Investment Credit Act or property that was
owned by the taxpayer or an affiliate before January 1, 2025.
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If a "qualified expenditure" is an allocation of an
expenditure, the cost accounting methodology used for the
allocation of the expenditure shall be the same cost accounting
methodology used by the taxpayer in its other business
activities;
(2) "quantum facility" means a facility in New
Mexico at which research and development in quantum technology
is conducted, other than a facility operated by a taxpayer for
the United States or any agency, department or instrumentality
thereof; and
(3) "quantum technology" means technology that
relies on quantum superposition or quantum entanglement or
innovations that enable those technologies."
SECTION 2. A new section of the Corporate Income and
Franchise Tax Act is enacted to read:
"[NEW MATERIAL] QUANTUM FACILITY INFRASTRUCTURE CORPORATE
INCOME TAX CREDIT.--
A. For taxable years ending prior to January 1,
2035, a taxpayer that makes at least three million dollars
($3,000,000) in qualified expenditures for infrastructure for a
quantum facility located in New Mexico may claim a credit
against the taxpayer's tax liability imposed pursuant to the
Corporate Income and Franchise Tax Act in the amount provided
in Subsection B of this section. The credit provided by this
section may be referred to as the "quantum facility
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infrastructure corporate income tax credit".
B. Subject to the total aggregate amount allowed
pursuant to Subsection D of this section, the amount of credit
shall be in an amount equal to thirty percent of the amount of
the qualified expenditures made by the taxpayer for
infrastructure for a quantum facility, not to exceed fifty
million dollars ($50,000,000) per quantum facility.
C. Prior to incurring a qualified expenditure, a
taxpayer shall apply for preliminary certification of
eligibility for the credit from the economic development
department on forms and in the manner prescribed by that
department. Such preliminary certification shall be limited to
confirming that the qualified expenditures proposed to be made
by the taxpayer will in whole or in part be used to provide
infrastructure for a quantum facility and an estimate of the
amount of credit for which the taxpayer may be eligible. Only
one certificate of eligibility shall be issued for a quantum
facility, regardless of ownership of the facility.
D. Within twelve months of completion of
construction of a quantum facility, the taxpayer shall seek
final certification from the economic development department.
The maximum aggregate amount of quantum facility infrastructure
income tax credits and quantum facility infrastructure
corporate income tax credits that may be certified shall not
exceed seventy-five million dollars ($75,000,000); provided
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that the maximum aggregate amount shall be increased to one
hundred fifty million dollars ($150,000,000) in the calendar
year the state is awarded a United States national science
foundation regional innovation engines award for quantum
technologies. An application for final certification shall
include information required by the economic development
department to determine eligibility for the credit, including
information substantiating qualified expenditures. If that
department determines that the taxpayer meets the requirements
of this section, that department shall issue a dated
certificate of eligibility to the taxpayer providing the amount
of credit for which the taxpayer is eligible and the taxable
years in which the credit may be claimed. The economic
development department shall provide the department with the
certificates of eligibility issued pursuant to this subsection
in secure electronic format at regularly agreed-upon intervals.
E. A taxpayer allowed to claim the credit shall
claim the credit in a manner required by the department. The
credit shall be claimed within one year of receiving final
certification from the economic development department. The
taxpayer shall claim the amount certified and approved against
the taxpayer's income tax liability. Any amount of credit that
exceeds the taxpayer's income tax liability shall be refunded
to the taxpayer.
F. As used in this section:
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(1) "qualified expenditure" means an
expenditure made by a taxpayer for land and rent paid or
incurred for land, improvements, buildings or infrastructure
required for a quantum facility, but not including any
expenditure for property that is owned by a municipality or
county in connection with an industrial revenue bond project,
property for which the taxpayer has received any credit
pursuant to the Investment Credit Act or property that was
owned by the taxpayer or an affiliate before January 1, 2025.
If a "qualified expenditure" is an allocation of an
expenditure, the cost accounting methodology used for the
allocation of the expenditure shall be the same cost accounting
methodology used by the taxpayer in its other business
activities;
(2) "quantum facility" means a facility in New
Mexico at which research and development in quantum technology
is conducted, other than a facility operated by a taxpayer for
the United States or any agency, department or instrumentality
thereof; and
(3) "quantum technology" means technology that
relies on quantum superposition or quantum entanglement or
innovations that enable those technologies."
SECTION 3. DELAYED REPEAL.--Sections 1 and 2 of this act
are repealed effective January 1, 2036.
SECTION 4. APPLICABILITY.--The provisions of this act
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apply to taxable years beginning on or after January 1, 2025.
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