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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

3/05/07

HB HM 56

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 Memorial 56 expresses the appreciation of the Legislature to the Economic Development

Department (EDD) for its efforts to promote and sustain manufacturing in New Mexico through

with tax incentives and requests the department continue to develop tax incentive legislation that

promotes manufacturing.

SIGNIFICANT ISSUES

HM 56 states that since 2002 manufacturing jobs in New Mexico have increased about four

percent. The memorial requests that EDD consider other tax incentives to continue this trend.

New Mexico offers more than 27 tax and business development incentives. For example, from

2003 to 2006, companies claimed $22.7 million in tax credits through the manufacturing

investment tax credit; however, no data is available on the number of jobs created by companies

taking this credit.

According to the final report of the Tax Incentive and Accountability Task Force, released by

EDD in April 2006, among the most frequently used and costly incentives are the 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.

BE/nt