Deduction; gross receipts; trade-support company in a

border zone. A. The receipts of a trade-support company may be deducted from gross receipts if: (1) the trade-support company first locates in New Mexico within twenty miles of a port of entry on New Mexico's border with Mexico on or after January 1, 2016 but before January 1, 2021; (2) the receipts are received by the company within a five-year period beginning on the date the trade-support company locates in New Mexico and the receipts are derived from its business activities and operations at its border zone location; and (3) the trade-support company employs at least two employees in New Mexico. B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department. C. The deduction provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978 with an analysis of the effectiveness and cost of the deduction. D. As used in this section: (1) "dependent" means "dependent" as defined in 26 U.S.C. 152(a), as that section may be amended or renumbered; (2) "employee" means an individual, other than an individual who: (a) is a dependent of the employer; (b) if the employer is an estate or trust, is a grantor, beneficiary or fiduciary of the estate or trust or is a dependent of a grantor, beneficiary or fiduciary of the estate or trust; (c) if the employer is a corporation, is a dependent of an individual who owns, directly or indirectly, more than fifty percent in value of the outstanding stock of the corporation; or (d) if the employer is an entity other than a corporation, estate or trust, is a dependent of an individual who owns, directly or indirectly, more than fifty percent of the capital and profits interests in the entity; (3) "port of entry" means an international port of entry in New Mexico at which customs services are provided by United States customs and border protection; and (4) "trade-support company" means a customs brokerage firm or a freight forwarder. History: Laws 2003, ch. 232, § 1; 2007, ch. 172, § 6; 2015 (1st S.S.), ch. 2, § 8; 2021, ch. 65, § 22; 2025, ch. 130, § 70.