GenTax® V9 Upgrade Phase 3 Business Credit Manager Executive Sponsors Demesia Padilla, CPA Cabinet Secretary John Monforte Deputy Cabinet Secretary Greg Saunders Chief Information Officer September 25, 2013

Introduction GenTax is a commercial-off-the-shelf (COTS) product that is the tax system of record for New Mexico. New Mexico Taxation and Revenue Department  (TRD) is currently engaged in an upgrade of GenTax. Starting in July 2012 and finishing in June 2014,  the GenTax V9 Upgrade Project has successfully completed two of its three phases. From the GenTax V9 Upgrade Project budgetary allocation of $6.23M, 73% or $4.55M is spent. This project is expected to show an ROI on the original appropriation exceeding 3:1 over the next 5 years. Since project inception on 07/01/12, $6.83M in additional revenue has been captured due to the enhanced capabilities in V9 GenTax.

Business Credit Manager (BCM) TRD’s objectives for FY14 are to build upon the expanded Tax collection and management capabilities of the recently implemented upgrade to v9 of the GenTax tax software application. The purpose of the Business Credit module is to electronically process business tax credits, within GenTax, showing how funds are disbursed to the various tax credits for each tax program, by tax return, and tax type, including: Provide TRD with a business credit module which will track and control the validation and offset of business credits in the system. Improve reporting efficiency and accuracy pertaining to all revenue agency aspects by implementing a Business Credits Module in GenTax v9.

Business Objectives (1) Extend the existing functionality and infrastructure of GenTax to support Business Credit Manager. Benefits are efficient use of existing hardware, software resources and the on-going investment in development and training on GenTax. Eliminate manual processing, tracking and use of spreadsheets where possible through automation within GenTax. Benefits are timeliness and accuracy of processing. Consolidate and standardize user interface and reporting for all TRD divisions. Benefits are operational efficiency and improved inter-divisional integration. Provide approval levels and tracking of those approvals, accurate accounting, improved analysis and reporting of business tax credits, including reduced reporting time. Benefits are timeliness, and accessibility for reporting and analysis.

Business Objectives (2) Eliminate over-distribution and duplicate tax credit claims. Benefits are loss-control, taxpayer compliance and taxpayer confidence in the fairness and integrity of the tax system. Create standardized models to accommodate current and future tax credits. Benefits are manageability of existing credits and flexibility and responsiveness in implementing new credits. Provide reporting functionality by tax credit, industry type, tax program, and geographical location. Benefits are accountability and accessibility of information. During Legislative session, provide data and reports to Tax Policy and Research so that timely and accurate fiscal impact and forecast revenue projections of proposed legislation may be prepared. Benefits are improved customer service for Legislative Branch, and support for internal TRD policy-making and analysis.

Contractual Delivery Dates Task Name Duration Start Finish V9 Upgrade Phase 3 261 days 7/1/2013 6/30/2014 BCM System Design and Development 155 days 1/31/2014 BCM System Validation 85 days 2/3/2014 5/30/2014 BCM Production Implementation 21 days 6/2/2014 Project Close-Out 23 days 7/1/2014 7/31/2014

Questions Thank you