Bill > HB298

This bill establishes a new "rail infrastructure corporate income tax credit" for railroads in New Mexico, allowing them to claim a tax credit for qualified expenses related to reconstructing, replacing, or building new rail infrastructure, such as tracks, bridges, and loading facilities, up to 50% of the expenditure, with specific limits per mile of track or per new customer project. To receive this credit, railroads must apply for a certificate of eligibility from the Department of Transportation, which will then share this information with the Taxation and Revenue Department to facilitate the tax credit process. The total amount of credits certified annually is capped at $6 million, and any unused credit can be carried forward for up to five years. The bill also amends existing law to allow the Taxation and Revenue Department to share information about these rail infrastructure tax credits with the Department of Transportation, enabling better administration and oversight of the program, which is intended to encourage rail expansion, improve freight capacity, and boost business competitiveness. This new tax credit applies to taxable years beginning on or after January 1, 2026, and the Department of Transportation will analyze its effectiveness and report on its impact.

Business and Industry

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=298&year=26