New Mexico has enacted legislation that provides a gross receipts deduction for construction-related services, provides a deduction for construction equipment leases, and expands deductions for manufacturing consumables. These deductions apply when the construction project is subject to the Gross Receipts Tax or qualify as an exempt project due to the customer but otherwise would have been taxable. The deduction for sales of construction services to persons engaged in the construction business has been expanded to include construction-related services. “Construction-related service” means a service directly contracted for or billed to a specific construction project, including design, architecture, drafting, surveying, engineering, environmental and structural testing, security, sanitation, and services required to comply with governmental construction-related regulations. “Construction-related service” does not include general business services such as legal or accounting services, equipment maintenance, and real estate sales commissions. Receipts from leasing construction equipment may be deducted from gross receipts if the equipment is leased to an individual in the construction business who delivers a nontaxable transaction certificate to the equipment lessor. The lessee can only use the equipment at the location of a construction project that is subject to the gross receipts tax when it is completed or on the completion of the overall project which it is part of, a construction project that is subject to the gross receipts tax upon the sale of the real property upon which it was constructed, or a construction project that is located on the tribal territory of an Indian nation, tribe or pueblo. “Construction equipment” means equipment used on a construction project, including trash containers, portable toilets, scaffolding, and temporary fencing. (H.B. 184, Laws 2012, effective January 1, 2012)