us-nm/stat
NMSA 1978, § 7-9-13.1 — Exemption; gross receipts tax; certain services
A.
Exempted from the gross receipts tax are the receipts from selling research and
development services performed outside New Mexico the product of which is initially
used in New Mexico and that are sold:
(1) between affiliated corporations;
(2) to the United States by persons, other than organizations described in
Subsection A of Section 7-9-29 NMSA 1978, who are prime contractors operating
facilities in New Mexico designated as national laboratories by act of congress; or
(3) to persons, other than organizations described in Subsection A of Section
7-9-29 NMSA 1978, who are prime contractors operating facilities in New Mexico
designated as national laboratories by act of congress.
B.
An "affiliated corporation" means a corporation that directly or indirectly, through
one or more intermediaries controls, is controlled by or is under common control with
the subject corporation. "Control" means ownership of stock in a corporation that
represents at least eighty percent of the total voting power of that corporation and has a
stated or par value equal to at least eighty percent of the total stated or par value of the
stock of that corporation.
Source: official text