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A MEMORIAL

REQUESTING THE ECONOMIC DEVELOPMENT DEPARTMENT AND THE

TAXATION AND REVENUE DEPARTMENT TO EXAMINE THE EFFECTIVENESS

OF CURRENT INCENTIVES TO PROMOTE AND SUSTAIN MANUFACTURING.

WHEREAS, manufacturing is a significant source of

employment and economic benefit in the state; and

WHEREAS, retaining and encouraging growth in existing

manufacturing operations is as important to the state's

economy as attracting new manufacturers; and

WHEREAS, there is intense competition among states and

nations for manufacturers because of the number of jobs

manufacturers provide and the relatively high salaries that

are paid to workers in those jobs; and

WHEREAS, the state of New Mexico has historically proven

to be very successful in attracting new manufacturing

operations and now needs to make a substantial effort to

retain these operations as important parts of the economic

infrastructure; and

WHEREAS, other states and nations have become very

aggressive in providing tax and other incentives to attract

manufacturing operations; and

WHEREAS, New Mexico cannot afford to become complacent

in reviewing and revising tax and other business incentives as

it seeks to retain manufacturers in and recruit manufacturers

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to New Mexico;

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF

REPRESENTATIVES OF THE STATE OF NEW MEXICO that the economic

development department and the taxation and revenue department

be requested to examine the effectiveness of current tax

incentives and other incentives to attract and retain

manufacturing operations to the state; and

BE IT FURTHER RESOLVED that, in conducting this

examination, these departments be requested to consult with

representatives of current manufacturing operations in the

state, members of the general business community, tax policy

experts, economists and local government officials; and

BE IT FURTHER RESOLVED that these departments be

requested to report the results of their examination and their

recommendations for any new legislation to the legislative

finance committee and the interim revenue stabilization and

tax policy committee no later than November 1, 2008; and

BE IT FURTHER RESOLVED that copies of this memorial be

transmitted to the secretary of economic development and the

secretary of taxation and revenue.