New Mexico 2023 Regular Session

New Mexico Senate Bill SB253

Caption

Grt Deduction For Certain Special Fuels

Impact

The implementation of SB253 is expected to influence state taxation laws significantly by providing financial incentives for businesses dealing in eco-friendly fuel sources. With the effective date set for July 1, 2023, the bill aligns with broader efforts to transition towards sustainable energy practices in New Mexico. By reducing the tax burden on providers of special fuels, the legislation may generally lower costs for consumers and foster economic growth in green fuel sectors.

Summary

Senate Bill 253, introduced in the New Mexico legislature, aims to provide a gross receipts tax deduction for certain special fuels made from vegetable oil or animal fat. Specifically, the bill allows for a fifty percent deduction from gross receipts for the sale of special fuel that consists of at least ninety-nine percent vegetable oil or animal fat. This legislation is positioned to encourage the use of renewable fuels while also supporting local industries involved in the production of these fuels.

Contention

Despite its beneficial intentions, SB253 may face scrutiny regarding its potential implications on state revenue and the effectiveness of the deduction in promoting the adoption of special fuels. Critics could argue that while the bill supports the renewable fuel industry, it may reduce tax income needed for public services. Moreover, there may be discussions about the feasibility and enforcement of verifying the composition of the fuels sold to ensure compliance with the bill's requirements.

Companion Bills

No companion bills found.

Previously Filed As

NM HB351

Clarify point of taxation for gasoline and special fuels taxes

NM HB39

Grt Deduction For Nonathletic Special Events

NM SB446

Removing methanol and methanol fuel from definition of special fuel

NM HB3238

Removing methanol and methanol fuel from the definition of special fuel

NM SB519

Modifies provisions relating to tax credit for certain fuels

NM SB121

Temporary Grt Deductions For Restaurants

NM HB436

Biodiesel Tax Credits

NM HB137

Grt Deductions For Child Care Assistance

NM HB163

25% Grt Deduction For Small Businesses

NM A3009

Provides gross income tax deduction for State fuel taxes paid on certain purchases of motor fuel.

Similar Bills

No similar bills found.