Summary:

 Senate Bill 212 (SB 212) creates the Quantum Testing and Evaluation Gross Receipts Tax Credit, allowing national laboratories conducting quantum research under a memorandum of agreement with a federal quantum agency to claim a credit against gross receipts tax liability. The credit amount matches federal funding received for quantum testing and evaluation services, with a total statewide cap of $15 million per year and an aggregate program cap of $60 million. The credit applies to taxable periods beginning July 1, 2025, and expires July 1, 2035. 

Legislation Overview:

 Senate Bill 212 (SB 212) establishes a gross receipts tax credit for national laboratories in New Mexico that conduct quantum testing and evaluation under a federal agreement.

A national laboratory is defined as a prime contractor operating a facility in New Mexico under congressional authorization. A federal quantum agency refers to the entity administering the federal government’s quantum benchmarking initiative.

The credit amount equals the federal funding received for quantum testing, evaluation, or fabrication of quantum devices, but the total credit statewide cannot exceed $15 million per year. The Economic Development Department (EDD) will certify eligibility and issue tax credit certificates. The program is capped at $60  million in total. Taxpayers must claim the credit within one year of receiving federal funds. Unused credit amounts can be carried forward for 60 consecutive tax periods. If multiple national laboratories qualify, they must develop a joint operational plan to ensure combined tax credit claims do not exceed $15 million annually. National laboratories receiving the credit must submit annual reports to the Taxation and Revenue Department, EDD, and a legislative interim committee detailing program impact. The credit expires on July 1, 2035.

Implications

SB 212 is designed to strengthen quantum research and development in New Mexico by aligning state tax incentives with federal funding programs. By offsetting gross receipts tax liabilities, the bill reduces operational costs for national laboratories, allowing them to expand quantum research initiatives. The requirement for federal matching funds ensures that state incentives are directly tied to federally funded projects, increasing accountability. However, the $60 million program cap and $15 million annual limit may restrict participation if demand exceeds funding availability. The 60-period carryforward provision provides flexibility but could delay the state realizing the full fiscal impact of the credit. The reporting requirement ensures legislative oversight, allowing policymakers to assess the program’s economic and scientific impact. If multiple national laboratories qualify, the requirement for a joint operational plan may cause administrative delays but ensures fair distribution of the tax credit. 

Current Law:

 New Mexico does not currently offer a gross receipts tax credit specifically for quantum research conducted by national laboratories. SB 212 introduces a targeted incentive to support federal quantum research initiatives and attract additional federal funding to the state.