N.M. Stat. § 7-9-73.3 (2026)

receipts tax; durable medical equipment; medical supplies.
   A. Prior to July 1, 2030, receipts from the sale or rental of durable medical
equipment and medical supplies may be deducted from gross receipts and
governmental gross receipts.

    B. The purpose of the deduction provided in this section is to help protect jobs and
retain businesses in New Mexico that sell or rent durable medical equipment and
medical supplies.

    C. A taxpayer allowed a deduction pursuant to this section shall report the amount
of the deduction separately in a manner required by the department.

   D. The deduction provided in this section shall be taken only by a taxpayer
participating in the New Mexico medicaid program whose gross receipts are no less
than ninety percent derived from the sale or rental of durable medical equipment,
medical supplies or infusion therapy services, including the medications used in infusion
therapy services.

   E. Claiming a deduction provided by this section is authorization by the taxpayer
receiving the deduction for the department to reveal return information necessary to
comply with the requirements of Section 7-1-84 NMSA 1978.

   F. The deduction provided by this section shall be included in the tax expenditure
budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of
the deduction.

   G. As used in this section:

      (1)   "durable medical equipment" means a medical assistive device or other
equipment that:

          (a) can withstand repeated use;

           (b) is primarily and customarily used to serve a medical purpose and is not
useful to an individual in the absence of an illness, injury or other medical necessity,
including improved functioning of a body part;
         (c) is appropriate for use at home exclusively by the eligible recipient for
whom the durable medical equipment is prescribed; and

          (d) is prescribed by a physician or other person licensed by the state to
prescribe durable medical equipment;

      (2)    "infusion therapy services" means the administration of prescribed
medication through a needle or catheter;

       (3)    "medical supplies" means items for a course of medical treatment,
including nutritional products, that are:

          (a) necessary for an ongoing course of medical treatment;

          (b) disposable and cannot be reused; and

          (c) prescribed by a physician or other person licensed by the state to
prescribe medical supplies; and

      (4)   "prescribe" means to authorize the use of an item or substance for a
course of medical treatment.

History: Laws 2014, ch. 26, § 1; 2020, ch. 18, § 1; 2025, ch. 130, § 74.

                                     ANNOTATIONS

The 2025 amendment, effective July 1, 2025, revised reporting requirements, and
removed certain obsolete language; in Subsection E, after "reveal return information"
deleted "to the revenue stabilization and tax policy committee and the legislative finance
committee necessary to analyze the effectiveness and cost of the deduction and
whether the deduction is performing the purpose for which it was created." and added
"necessary to comply with the requirements of Section 7-1-84 NMSA 1978"; and
deleted former Subsection F and added a new Subsection F.

The 2020 amendment, effective July 1, 2020, extended the sunset date for a gross
receipts tax and governmental gross receipts tax deduction for durable medical
equipment and medical supplies, and changed the reporting requirement for the
taxation and revenue department regarding the effectiveness and cost of the deduction
from being presented every five years to every year; in Subsection A, added "Prior to
July 1, 2030", and after the first occurrence of "receipts", deleted "from transactions
occurring prior to July 1, 2020 that are"; and in Subsection F, after "the effectiveness of
the deduction.", deleted "Beginning in 2019 and every five years thereafter", after
"shall", deleted "compile and", and after "present the", deleted "annual reports" and
added "report".
7-9-73.4. Deduction; gross receipts tax; environmental
modifications for medicaid recipients.
   A. Prior to July 1, 2034, receipts of an eligible provider for environmental
modifications reimbursed by the medical assistance division may be deducted from
gross receipts.

   B. As used in this section:

      (1)    "eligible provider" means a provider who meets requirements of the
medical assistance division to provide environmental modifications pursuant to a waiver
granted by the federal department of health and human services to provide home and
community-based services to recipients;

       (2)   "environmental modifications" include the purchasing and installing of
equipment or making physical adaptions to a recipient's residence that are necessary to
ensure the health, welfare and safety of the recipient or enhance the recipient's access
to the home environment and increase the recipient's ability to act independently;

        (3)     "medicaid" means the medical assistance program established pursuant
to Title 19 of the federal Social Security Act and regulations issued pursuant to that act;

       (4)   "medical assistance division" means the medical assistance division of the
health care authority department; and

       (5)    "recipient" means a person whom the medical assistance division has
determined to be eligible to receive medicaid-related services and who meets the
financial and medical level of care criteria to receive medical assistance division
services through one of the division's waiver programs granted by the federal
department of health and human services.

History: Laws 2024, ch. 67, § 12.

                                     ANNOTATIONS

Effective dates. — Laws 2024, ch. 67, § 43 made Laws 2024, ch. 67, § 12 effective
July 1, 2024.