Protect New Mexico

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HB 337: RURAL INFRASTRUCTURE TAX CREDIT

An Act Relating To Taxation; Creating The Rural Infrastructure Tax Credit.

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MILD HB 337
RURAL INFRASTRUCTURE TAX CREDIT

Legislative URL:
HB 337 on nmlegis.gov
Emergency Clause:
No
Germane:
N/A
Location:
HWMC
Action:
[7] HTPWC/HWMC-HTPWC [21] DP-HWMC API.
Issue(s):

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
HTPWC Committee Report
Fiscal Impact Report

Related Events

Upcoming:
Summary

This bill creates the Rural Infrastructure Tax Credit, available prior to January 1, 2021 to a taxpayer who makes a qualified investment of at least $1,000,000 in a commercial enterprise project that meets certain criteria including, among others, that it is located in a county that is not a class A county, and, whose purpose is to manufacture goods, extract natural resources or process raw materials for sale.

 

The Rural Infrastructure Tax Credit may be up to 30 percent of the cost of the qualified investment against the taxpayer’s modified combined tax liability or the taxpayer’s tax liability pursuant to the provisions of the Income Tax Act and the Corporate Income and Franchise Tax Act. The amount of the credit associated with the purchase of land or fixed assets may not exceed 50 percent of the amount of the credit associated with the cost of construction of one or more buildings.

 

The tax credit may not exceed $1,000,000 per qualified investment for not more than three qualified investments by the taxpayer in a taxable year. The total amount of Rural Infrastructure Tax Credits may not exceed $10,000,000 in any calendar year. To claim the Rural Infrastructure Tax Credit, a taxpayer must provide to the Department of Taxation and Revenue a certificate of eligibility issued by the New Mexico Finance Authority and any other information that the department may require.

 

A possible benefit of this bill might be stimulation of economic development and job creation in rural