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New Law Clarifies Uranium Enrichment Tax Break

Gov. Susana Martinez has signed legislation to clarify a tax break New Mexico provides for a uranium enrichment plant in southeastern New Mexico.

SANTA FE, N.M. (AP) — Gov. Susana Martinez has signed legislation to clarify a tax break New Mexico provides for a uranium enrichment plant in southeastern New Mexico.

The change in law will ensure that the plant's utility customers won't be taxed if they sell a uranium compound before it is enriched. Utilities send uranium hexafluoride to the plant near Eunice for enrichment as part of a process for producing nuclear power plant fuel.

Supporters say the original tax break was worded incorrectly. The new law makes clear the gross receipts tax doesn't apply to sales of uranium hexafluoride as well as the service of enriching uranium.

The governor signed the legislation on Thursday. Martinez has until next Wednesday to sign or veto measures passed by the Legislature.