us-nm/stat
NMSA 1978, § 7-9-54.5 — Deduction; compensating tax; test articles
A.
The value of test articles upon which research or testing is conducted in New
Mexico pursuant to a contract with the United States department of defense may be
deducted in computing the compensating tax due.
B.
As used in this section, "test article" means a material or device upon which
research or testing is conducted to determine the properties and qualities of the material
or the properties, qualities or functioning of the device or a technology used with the
device.
C.
The deduction provided by this section does not apply to the value of property
purchased by a prime contractor operating a facility designated as a national laboratory
by an act of congress.
Source: official text