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F I S C A L I M P A C T R E P O R T
SPONSOR Campos
DATE TYPED 1/31/05
HB 163
SHORT TITLE Tax Credit for Rural High Wage Jobs
SB
ANALYST Taylor
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
Uncertain
Uncertain
($100.0) Recurring
General Fund
Uncertain
Uncertain
$10.0 Recurring Local Governments
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department
Economic Development Department
SUMMARY
HB 163 amends the high wage tax credit. The definition of an eligible employer is expanded to
include an employer who made more than 50 percent of its sales to persons outside the county in
which the employer is located, provided that that county has a population less than 40 thousand.
Current law (passed in the 2004 legislative session) defines eligible employers as those who
made 50 percent of their sales to persons outside New Mexico. Eligible employers may claim a
“high wage” tax credit equal to 10 percent of the wages paid for economic base jobs that pay
more than $40,000 per year in municipalities with populations greater than 40 thousand and $28
thousand in municipalities with a population less than 40 thousand. The credit may be claimed
for up to four years.
The bill has no effective date, and is presumed effective 90 days after the end of the legislative
session.