{"data":{"id":"us-nm/7-9-56.3","jurisdiction":"us-nm","citation":"7-9-56.3","heading":"Deduction; gross receipts; trade-support company in a border zone.","body":"A. The receipts of a trade-support company may be deducted from gross receipts if:\n(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;\n(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\n(3) the trade-support company employs at least two employees in New Mexico.\nB. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.\nC. 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.\nD. As used in this section:\n(1) \"dependent\" means \"dependent\" as defined in 26 U.S.C. 152(a), as that section may be amended or renumbered;\n(2) \"employee\" means an individual, other than an individual who:\n(a) is a dependent of the employer;\n(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;\n(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\n(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;\n(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\n(4) \"trade-support company\" means a customs brokerage firm or a freight forwarder.","path":["Chapter 7 - Taxation","ARTICLE 9 Gross Receipts and Compensating Tax"],"source_url":"https://nmonesource.com/nmos/nmsa-unanno/en/item/18507/index.do","current_through":"2026-07-01","vintage":"","retrieved_at":"2026-09-03T15:02:19Z","sha256":"b6f6048c22d3dd0f3db12495511fa270642e67feed1632957e3d14e264a3b548","source_id":"us-nm","stale":false,"prev":"us-nm/7-9-56.2","next":"us-nm/7-9-57"},"notice":"GroundRules: Original legal text. Not legal advice."}