Bill > SB477

This bill, titled the "Frontier Community Investment Tax Credit," aims to encourage investment in economically disadvantaged areas of New Mexico by creating new tax credits for businesses. Specifically, it establishes a "frontier community investment income tax credit" for individuals and a "frontier community investment corporate income tax credit" for corporations. To qualify, a business must be located in New Mexico, have created at least three new full-time jobs, and have had gross revenues below a certain threshold. The credit is calculated as up to 25% of a qualified investment, with a maximum credit of $25,000 per investment, and a total annual cap of $750,000 for all credits issued by the Economic Development Department. The bill also includes provisions for reporting on the effectiveness of these tax credits and specifies that these credits are only applicable to investments made before December 31, 2024. Additionally, the bill amends existing law to allow the Taxation and Revenue Department to share certain tax return information with legislative committees, specifically the Revenue Stabilization and Tax Policy Committee and the Legislative Finance Committee, to help them assess the effectiveness of tax credits.