Bill > HB108

This bill establishes a "rural infrastructure tax credit" for taxpayers who make qualified investments in rural areas, aiming to stimulate economic development, encourage private investment in manufacturing, attract industry to rural communities, and promote job creation. A qualified investment must be at least one million dollars in a commercial enterprise project located outside of or more than ten miles from municipalities with a population of 55,000 or more, and the project must involve manufacturing, natural resource extraction, or raw material processing, including the construction of at least one building. The credit can be up to thirty percent of the qualified investment's cost, with specific limits on land or fixed asset purchases compared to construction costs, and a maximum of one million dollars per investment, with a limit of three investments per taxpayer annually. Taxpayers must apply for a certificate of eligibility from the New Mexico Finance Authority (the "authority"), which will issue it if the investment is qualified and likely to produce quantifiable benefits, such as increased local hiring and tax collections. The total amount of credits issued annually is capped at ten million dollars, with excess applications carried over to subsequent years. The credit can be carried forward for up to ten years if it exceeds a taxpayer's liability, and specific rules apply to married individuals filing separately and business entities like partnerships. The bill also includes provisions for project completion timelines, reporting requirements to legislative committees, and definitions for key terms like "authority," "department" (taxation and revenue department), "modified combined tax liability" (a specific calculation of tax liability excluding local taxes), and "quantifiable benefits."