N.M. Admin. Code § 3.2.210.17
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.
N.M. Admin. Code § 3.2.210.17