In the 2012 legislative session the New Mexico Legislature passed, and Governor Martinez signed into law, an expansion to the deduction for the sale of tangible personal property to manufacturers. A seller may deduct receipts from sales to a manufacturer of tangible personal property that becomes an ingredient or component part of a manufactured product.
The deduction is phased in as follows:
For the purposes of this deduction, “consumable” is defined as tangible personal property that is incorporated into, destroyed, depleted, or transformed in the process of manufacturing a product, including electricity, fuels, water, manufacturing aids and supplies, chemicals, gases, repair parts, spares, and other tangibles used to manufacture a product. Read more about the consumables deduction.