NMSA 1978, § 7-9-56.3 — 7-9-56.3

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.