Cheers to five more years

ALBUQUERQUE

ALBUQUERQUE, N.M. — An initiative that helps businesses transform New Mexico national laboratories’ technologies into viable products and services will continue driving innovations to market into 2027. Passed by the state legislature and signed into law by Gov. Michelle Lujan Grisham in March, the bill graduates the pilot Technology Readiness Gross Receipts Tax Credit Initiative into a five-year program.

ALBUQUERQUE, N.M. — An initiative that helps businesses transform New Mexico national laboratories’ technologies into viable products and services will continue driving innovations to market into 2027. Passed by the state legislature and signed into law by Gov. Michelle Lujan Grisham in March, the bill graduates the pilot Technology Readiness Gross Receipts Tax Credit Initiative into a five-year program.

“We couldn’t be happier that the legislature supported extending the life of this program,” said Mary Monson, Sandia National Laboratories senior manager of Technology Partnerships and Business Development. “The New Mexico Senate and House of Representatives unanimously voted in favor of the bill that could help create jobs and enhance the state economy through technology commercialization.”

The program is offered in partnership between the state of New Mexico, Sandia and Los Alamos national laboratories. Since the establishment of the pilot in 2020, Sandia provided technical assistance to companies in cybersecurity, energy, robotics and medical industries. This includes businesses maturing technology that could reduce heating and cooling bills, assist with imaging procedures to diagnose life-threatening diseases and protect critical infrastructure from hackers.

Currently, there are 11 New Mexico companies accessing technical assistance from Sandia and Los Alamos national laboratories through this avenue. The initiative has accelerated technology transfer to New Mexico businesses, resulting in 10 licenses and two Cooperative Research and Development Agreements, with more in the pipeline, according to the Sandia business development team.

“The assistance we’ve been able to provide has been exciting and rewarding,” said David Kistin, Sandia manager of technology and economic development. “Some of the assistance included testing components in simulated spaces. In another project, we are helping a company advance disinfectant technology licensed from Sandia. We’re looking forward to seeing what the businesses do next.”

Labs claim up to $1M per year for technical assistance

Each year, national labs call for proposals and companies to submit statements of intent. If selected to work with Sandia or Los Alamos national laboratories, the companies can receive up to $150,000 worth of technical assistance during a 12-month period.

The new law that extends this program enables the state’s national laboratories to claim up to $1 million per fiscal year in tax credits against their gross receipts tax liabilities for their work with businesses. Initially through the pilot program, each lab could claim up to $500,000 the first year, $750,000 the second year and $1 million the third year.

“New Mexico is the only state with two Department of Energy research labs,” said Cabinet Secretary Alicia Keyes of the New Mexico Economic Development Department. “This program can provide New Mexico businesses with an unmatched opportunity to tap into scientific expertise and use this collaboration to push ideas and products into the marketplace.”

Eligible businesses must be registered to do business in New Mexico and have a facility in the state. They also must have licensed a technology from the laboratories or participate in a Cooperative Research and Development Agreement with a New Mexico national lab.

Work provided by scientists and engineers may include prototyping, proofs-of-concept and other activities that are not available in the private sector.

“Los Alamos and Sandia are committed to assisting companies during the critical stage between technology development and commercialization,” said Deputy Program Manager Mariann Johnston of the Los Alamos Feynman Center for Innovation.

Sandia program lead Genaro Montoya said when technology is transferred from laboratories, companies sometimes struggle to commercialize it without further technical validation, but “through this program, we are able to help.”

For more information, visit the Technology Readiness Gross Receipts initiative website.


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