NMSA 1978, § 7-9-52 — 7-9-52

Deduction; gross receipts tax; sale of construction services
and construction-related services to persons engaged in the
construction business.

# A.

Receipts from selling a construction service or a construction-related service may
be deducted from gross receipts if the sale is made to a person engaged in the
construction business who delivers a nontaxable transaction certificate to the person
performing the construction service or a construction-related service or provides
alternative evidence pursuant to Section 7-9-43 NMSA 1978.

# B.

The buyer shall have the construction services or construction-related services
directly contracted for or billed to:
(1) a construction project that is subject to the gross receipts tax upon its
completion or upon the completion of the overall construction project of which it is a
part;
(2) a construction project that is subject to the gross receipts tax upon the
sale in the ordinary course of business of the real property upon which it was
constructed; or
(3) a construction project that is located on the tribal territory of an Indian
nation, tribe or pueblo.