Bill > SB93

This bill establishes a new "rail infrastructure corporate income tax credit" for railroads operating in New Mexico, allowing them to claim a credit against their corporate income tax liability for qualified expenses related to reconstructing, replacing, or expanding rail infrastructure. This credit, available for taxable years before January 1, 2036, aims to encourage improvements that increase freight capacity, reduce highway traffic, and boost the state's business competitiveness. The credit amount is set at fifty percent of qualified expenditures, with specific limits: for reconstruction or replacement, it's capped based on the number of miles of track owned or leased, and for new infrastructure, it's limited per new rail-served customer project. Railroads must apply for a certificate of eligibility from the Department of Transportation (DOT), which will then share this information with the Taxation and Revenue Department to facilitate the credit's administration. The total annual amount of credits certified is capped at $6,000,000, and applications are processed in the order they are received, with any excess considered for the following year. The DOT will also analyze the credit's effectiveness and report on its impact, such as job creation. Furthermore, this bill amends existing law to allow the DOT to share information regarding these rail infrastructure tax credits with the Taxation and Revenue Department, enabling better coordination and oversight. The provisions of this act apply to taxable years beginning on or after January 1, 2026.

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=93&year=26