A. A taxpayer may apply for approval of a credit within one year following the end of the reporting period in which the qualified expenditure was made.

B. A taxpayer having applied for and been granted approval for a basic credit by the department pursuant to the Technology Jobs and Research and Development Tax Credit Act may claim the amount of the approved basic credit against the taxpayer's compensating tax, withholding tax or gross receipts tax, excluding local option gross receipts tax, due to the state of New Mexico; provided that no taxpayer may claim an amount of approved basic credit for a reporting period in which the basic credit is being claimed that exceeds the sum of the taxpayer's compensating tax, withholding tax and gross receipts tax, excluding local option gross receipts tax, due for that reporting period.

C. Any amount of approved basic credit not claimed against the taxpayer's compensating tax, withholding tax or gross receipts tax, excluding local option gross receipts tax, due may be claimed in subsequent reporting periods for a period of up to three years from the date of the original claim.

History: Laws 2000 (2nd S.S.), ch. 22, § 9; 2015 (1st S.S.), ch. 2, § 16.

The 2015 (1st S.S.) amendment, effective January 1, 2016, amended the provisions for claiming the basic credit pursuant to the Technology Jobs and Research and Development Tax Credit Act; in the catchline, added "basic", and after "credit", deleted "for certain taxes"; in Subsection A, after "the end of the", deleted "calendar year" and added "reporting period"; in Subsection B, after "Technology Jobs", added "and Research and Development", after "compensating tax,", added "withholding tax", after the first occurrence of "gross receipts tax,", deleted "or withholding tax" and added "excluding local option gross receipts tax", after "approved basic credit for", deleted "any" and added "a"; after "reporting period", added "in which the basic credit is being claimed", after "sum of the taxpayer's", added "compensating tax, withholding tax and", after the second occurrence of "gross receipts tax,", deleted "compensating tax and withholding tax" and added "excluding local option gross receipts tax"; deleted Subsection C, relating to claiming the tax credit against the taxpayer's income tax or corporate income tax due to the state of New Mexico, and redesignated former Subsection D as Subsection C; and in Subsection C, after "against the taxpayer's", added "compensating tax, withholding tax or", after the first occurrence of "gross receipts tax", deleted "compensating tax or withholding tax" and added "excluding local option gross receipts tax", after "due", deleted "and any amount of approved additional credit not claimed against the taxpayer's income tax or corporate income tax due for a reporting period", and after "subsequent reporting periods", deleted "provided that a husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the additional credit that would have been allowed them on a joint return" and added "for a period of up to three years from the date of the original claim".

Applicability. — Laws 2015 (1st S.S.), ch. 2, § 25 provided that Laws 2015 (1st S.S.), ch. 2, § 16 apply to taxpayers that make a qualified expenditure beginning on or after January 1, 2015.

Specific period for application. — The Technology Jobs Tax Credit Act [Technology Jobs and Research and Development Tax Credit Act] does not allow a taxpayer to apply for a tax credit during any other period than specified in this section. Team Specialty Prods., Inc v. Taxation & Revenue Dep't., 2005-NMCA-020, 137 N.M. 50, 107 P.3d 4.

Legislature intended a one-year limitation period in enacting Subsection A of this section. Team Specialty Prods., Inc v. Taxation & Revenue Dep't., 2005-NMCA-020, 137 N.M. 50, 107 P.3d 4.

Mandatory period to apply for credit. — The one-year prescribed period contained in Subsection A of this section to apply for a tax credit is mandatory. Team Specialty Prods., Inc v. Taxation & Revenue Dep't., 2005-NMCA-020, 137 N.M. 50, 107 P.3d 4.

No authority to grant extension. — The Technology Jobs Tax Credit Act [Technology Jobs and Research and Development Tax Credit Act] contains no provision granting the department the authority to grant an extension of the one-year period. Team Specialty Prods., Inc v. Taxation & Revenue Dep't., 2005-NMCA-020, 137 N.M. 50, 107 P.3d 4.

The use of "may" in Subsection A of this section does not require the conclusion that the department must, or has the discretion to, permit filing beyond the one-year mentioned in this section. Team Specialty Prods., Inc v. Taxation & Revenue Dep't., 2005-NMCA-020, 137 N.M. 50, 107 P.3d 4.

Taxpayer was not denied substantive due process because the hearing officer found that the failure of taxpayer to file the application on time under this section was because of the negligence of their former employees and not because of their malfeasance and criminal conduct. Team Specialty Prods., Inc v. Taxation & Revenue Dep't., 2005-NMCA-020, 137 N.M. 50, 107 P.3d 4.