NMSA 1978, § 7-9-121 — 7-9-121

Credit; gross receipts tax; legal services for wildfire
compensation recovery.

# A.

A taxpayer who sells legal services to and at the request of a person eligible to
receive compensation pursuant to the federal Hermit's Peak/Calf Canyon Fire
Assistance Act may claim a tax credit against gross receipts taxes due in an amount
equal to the amount of gross receipts tax due on the receipt for the sale; provided that:
(1) the legal services are directly related to recovering the compensation;
(2) the taxpayer did not pass the amount of gross receipts tax on to the
person eligible to receive the federal compensation; and
(3) the legal services were sold to a person who states in writing in a manner
that the department may require that the person is eligible to receive the federal
compensation, the services were directly related to recovering the compensation and
the gross receipts tax was not passed on to the person.

# B.

A taxpayer may claim the tax credit for the taxable period in which the legal
services are provided. To receive the credit, the taxpayer shall apply to the department
on forms and in a manner prescribed by the department. The maximum aggregate
amount of tax credits that may be allowed in a fiscal year is five million dollars
($5,000,000). Completed applications shall be considered in the order received.
Applications received after the aggregate amount has been met shall not be approved.

# C.

That portion of the tax credit claimed by a taxpayer that exceeds the taxpayer's
gross receipts tax liability in the taxable period in which the credit is claimed shall not be
refunded to the taxpayer but may be carried forward for thirty-six consecutive taxable
periods.

# D.

As used in this section, "legal services" means services performed by a licensed
attorney for a client, regardless of the attorney's form of business entity or whether the
services are prepaid, including legal representation before courts or administrative
agencies; drafting legal documents, such as contracts or patent applications; legal
research; advising and counseling; arbitration; mediation; and notary public and other
ancillary legal services performed for a client in conjunction with a licensed attorney.
"Legal services" does not include lobbying or government relations services, title
insurance agent services, licensing or selling legal software or legal document
templates, insurance investigation services or any legal representation involving
financial crimes or tax evasion in New Mexico.