As used in the Investment Credit Act:

A. "department" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;

B. "equipment" means an essential machine, mechanism or tool, or a component or fitting thereof, used directly and exclusively in a manufacturing operation and subject to depreciation for purposes of the Internal Revenue Code by the taxpayer carrying on the manufacturing operation. "Equipment" does not include any vehicle that leaves the site of the manufacturing operation for purposes of transporting persons or property or any property for which the taxpayer claims the credit pursuant to Section 7-9-79 NMSA 1978;

C. "manufacturing" means combining or processing components or materials, including recyclable materials, to increase their value for sale in the ordinary course of business, including genetic testing and production, but not including:

(1) construction;

(2) farming;

(3) power generation, except for electricity generation at a facility other than one for which both location approval and a certificate of convenience and necessity are required prior to commencing construction or operation of the facility, pursuant to the Public Utility Act [Chapter 62, Articles 1 to 6 and 8 to 13 NMSA 1978] and the Electric Utility Industry Restructuring Act of 1999 [repealed]; or

(4) processing natural resources, including hydrocarbons;

D. "manufacturing operation" means a plant, including a genetic testing and production facility, employing personnel to perform production tasks, in conjunction with equipment not previously existing at the site, to produce goods;

E. "recyclable materials" means materials that would otherwise become solid waste if not recycled and that can be collected, separated or processed and placed in use in the form of raw materials or products; and

F. "taxpayer" means a person liable for payment of any tax, a person responsible for withholding and payment over or for collection and payment over of any tax or a person to whom an assessment has been made, if the assessment remains unabated or the amount thereof has not been paid.

History: Laws 1979, ch. 347, § 3; 1983, ch. 206, § 2; 1986, ch. 20, § 69; 1990, ch. 3, § 1; 1991, ch. 159, § 2; 1991, ch. 162, § 2; 2001, ch. 284, § 4; 2002, ch. 37, § 7.

Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law. Laws 2003, ch. 336, § 9 repealed the Electric Utility Industry Restructuring Act of 1999, effective June 20, 2003.

Cross references. — For the Internal Revenue Code, see 26 U.S.C.S. § 1 et seq.

The 2002 amendment, effective May 15, 2002, substituted Subsection C(3) for former provisions, which detailed population and net taxable value requirements for electricity generation facilities in class B counties to be excepted from the exclusion in Subsection C.

The 2001 amendment, effective June 15, 2001, inserted "other than electricity generation facilities in any class B county with" in Paragraph C(3); and added Paragraphs C(3)(a) to (f).

The 1991 amendment, effective June 14, 1991, deleted "'director' or 'division'" following "'department'" in Subsection A; in the introductory paragraph of Subsection C, inserted "including recyclable materials" and substituted "including genetic testing and production, but not including" for "but does not include"; inserted "including a genetic testing and production facility" in Subsection D; added Subsection E; and redesignated former Subsection E as Subsection F. Laws 1991, ch. 159, § 2 enacted identical amendments to this section. The section was set out as amended by Laws 1991, ch. 162, § 2. See 12-1-8 NMSA 1978.

The 1990 amendment, effective January 1, 1991, in Subsection B, rewrote the first sentence which read: " 'equipment' means an essential machine, or tool, used directly and exclusively in a manufacturing process, and subject to depreciation for purposes of the Internal Revenue Code" and added the language beginning "or any property" at the end of the second sentence.