Bill > SB129

This bill creates a new tax credit for railroads operating in New Mexico that invest in rail infrastructure. The Rail Infrastructure Corporate Income Tax Credit allows railroads (specifically Class Two or Class Three railroads) to claim a tax credit for qualified expenditures related to reconstructing, replacing, or creating new rail infrastructure. The credit is worth 50% of eligible expenses, with specific limits: for reconstruction or replacement expenditures, the credit cannot exceed $5,000 multiplied by the number of miles of track owned or leased in the state, and for new rail infrastructure, the credit is capped at $1 million per new rail-served customer project. Railroads must apply to the Department of Transportation for a certificate of eligibility, and the department can certify a maximum of $6 million in credits annually. Credits can be carried forward for up to five years if they exceed the taxpayer's current tax liability, and they can also be sold or transferred to other taxpayers. The bill also amends existing law to allow the Taxation and Revenue Department to share information about these tax credits with the Department of Transportation. The tax credit provisions will apply to taxable years beginning on or after January 1, 2025, and are designed to encourage rail infrastructure investment in New Mexico.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=129&year=25