Section 17. Manufacturer'S Equipment Installation

If a manufacturer of equipment agrees to install equipment on a construction project in such a manner that the equipment becomes an ingredient or component part of the construction project, then the manufacturer of the equipment is selling a construction service, (installation of the equipment) and is a “person engaged in the construction business”. Receipts of the manufacturer for installing the equipment may be deducted from gross receipts if the prime contractor delivers a nontaxable transaction certificate (nttc) to the manufacturer. If the manufacturer hires a person to install the equipment, that person is installing such equipment for “a person engaged in the construction business” and may deduct the receipts from gross receipts if the manufacturer delivers an nttc pursuant to Section 7-9-52 NMSA 1978 to the person installing equipment. [3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.210.17 NMAC - Rn, 3 NMAC 2.52.17 & A, 5/31/01] 3.2.210.18 CONSTRUCTION-RELATED SERVICES - LABORATORY WORK AND 3.2.210 NMAC 4 ENVIRONMENTAL TESTING: A. Prior to January 1, 2013, receipts of a person engaged in the business of performing laboratory work, such as the design or testing of dirt or concrete work, from the sale of these services to a person engaged in the construction business are not construction services within the meaning of Section 7-9-52 NMSA 1978 and may not be deducted from the seller's gross receipts pursuant to Section 7-9-52 NMSA 1978. B. Receipts for laboratory work or environmental testing performed on or after January 1, 2013, are receipts from performing construction-related services as defined in Section 7-9-52 NMSA 1978 and are deductible if the requirements of Section 7-9-52 NMSA 1978 are met. C. Example: X is engaged in the construction business. In order to comply with the requirements of the federal environmental protection agency, X must obtain the services of Y, a certified lead paint consultant anuary 1, 2013, are receipts from performing construction-related services as defined in Section 7-9-52 NMSA 1978 and are deductible if the requirements of Section 7-9-52 NMSA 1978 are met. C. Example: X is engaged in the construction business. In order to comply with the requirements of the federal environmental protection agency, X must obtain the services of Y, a certified lead paint consultant. Y will test for the existence of lead paint in any building being demolished or remodeled by X, prepare a federally required report, suggesting additional best management practices, and send samples to a testing lab. Services provided by Y on or after January 1, 2013, are construction-related services and are deductible under Section 7-9-52 NMSA 1978 as long as all the requirements in the statute are met.