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SENATE BILL 212
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 TESTING AND
EVALUATION GROSS RECEIPTS TAX CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Gross Receipts and
Compensating Tax Act is enacted to read:
"[NEW MATERIAL] QUANTUM TESTING AND EVALUATION GROSS
RECEIPTS TAX CREDIT.--
A. Prior to July 1, 2035, a taxpayer that is a
national laboratory that, pursuant to a memorandum of agreement
with a federal quantum agency, receives federal funds to
provide quantum testing and evaluation services 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.
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The tax credit provided by this section may be referred to as
the "quantum testing and evaluation gross receipts tax credit".
B. The purpose of the credit is to provide a match
for federal funds related to quantum testing and evaluation
services, to encourage recruitment of quantum businesses in New
Mexico and to increase economic development in New Mexico.
C. The amount of a credit shall equal the amount
that the taxpayer receives in federal matching funds for
quantum testing and evaluation or the fabrication of quantum
devices; provided that the total annual aggregate amount of
credits that may be claimed in a calendar year shall not exceed
fifteen million dollars ($15,000,000).
D. A taxpayer shall apply for certification of
eligibility for the tax credit from the economic development
department on forms and in the manner prescribed by that
department. The total aggregate amount of tax credits that may
be certified shall not exceed sixty million dollars
($60,000,000). If the economic development 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 tax credit
for which the taxpayer is eligible and the taxable periods 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 an
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electronic format at regularly agreed upon intervals.
E. A taxpayer allowed to claim a credit pursuant to
this section shall claim the tax credit on forms and in a
manner required by the department. The credit shall be claimed
within one year of the end of the year in which the taxpayer
receives federal matching funds for quantum testing and
evaluation or the fabrication of quantum devices.
F. A taxpayer may claim the credit for the taxable
period in which the memorandum of agreement is in effect. That
portion of credit that exceeds a taxpayer's tax liability in
the taxable period in which the credit is claimed may be
carried forward for sixty consecutive taxable periods.
G. If more than one national laboratory incurs
qualified expenditures in a taxable period, the national
laboratories shall not claim the credit until coordination is
developed between the national laboratories that generates a
joint operational plan to ensure that the combined claims for a
credit will not exceed the limitations provided in Subsection C
of this section.
H. A national laboratory that claims the 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
the credit, those laboratories shall jointly submit an annual
report.
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I. As used in this section:
(1) "federal quantum agency" means the federal
agency responsible for administering the federal government's
quantum benchmarking initiative;
(2) "national laboratory" means a prime
contractor designated as a national laboratory by act of
congress that is operating a facility in New Mexico; and
(3) "quantum testing and evaluation" means the
federal quantum agency's quantum benchmarking initiative that
aims to determine if it is possible to build an industrially
useful quantum computer much faster than conventional
predictions and is designed to verify and validate whether a
quantum computing approach can achieve utility-scale operation,
meaning its computational value exceeds its cost, by the year
2033."
SECTION 2. DELAYED REPEAL.--Section 1 of this act is
repealed effective July 1, 2035.
SECTION 3. APPLICABILITY.--The provisions of this act
apply to taxable periods beginning on or after July 1, 2025.
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