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F I S C A L I M P A C T R E P O R T
SPONSOR Lujan, B.
ORIGINAL DATE
LAST UPDATED
2/27/07
HB HJM 58
SHORT TITLE Economic Development Tax Incentives
SB
ANALYST Earnest
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
NFI
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
House Joint Memorial 58 expresses the appreciation of the Legislature to the Economic
Development Department (EDD) for its efforts to promote and sustain manufacturing in New
Mexico and requests the department continue to develop tax incentive legislation that promotes
manufacturing.
SIGNIFICANT ISSUES
The memorial states that since 2002 manufacturing jobs in New Mexico have increased just less
than four percent. The memorial requests that EDD consider other such incentives to continue
this trend.
New Mexico offers more than 27 tax and business development incentives. The final report of
the Tax Incentive and Accountability Task Force, released by EDD in April 2006, recommended
the Taxation and Revenue Department (TRD) report annually on the impact of the most
frequently used and costly incentives. These incentives include industrial revenue bonds (IRB),
manufacturing investment tax credit, high wage job tax credit, rural jobs tax credit, technology
jobs tax credit, and research and development small business tax credit.