New Mexico 2025 Regular Session

New Mexico Senate Bill SB129 Compare Versions

Only one version of the bill is available at this time.

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28	28	SENATE BILL 129
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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37	37	NEW
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39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Crystal Brantley
48	48	AN ACT
49	49	RELATING TO TAXATION; CREATING THE RAIL INFRASTRUCTURE
50	50	CORPORATE INCOME TAX CREDIT; ALLOWING THE TAXATION AND REVENUE
51	51	DEPARTMENT AND THE DEPARTMENT OF TRANSPORTATION TO SHARE
52	52	INFORMATION CONCERNING RAIL INFRASTRUCTURE CORPORATE INCOME TAX
53	53	CREDITS.
54	54	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
55	55	SECTION 1. A new section of the Corporate Income and
56	56	Franchise Tax Act is enacted to read:
57	57	"[NEW MATERIAL] RAIL INFRASTRUCTURE CORPORATE INCOME TAX
58	58	CREDIT.--
59	59	A. For taxable years prior to January 1, 2036, a
60	60	taxpayer that is a railroad that incurs qualified
61	61	reconstruction or replacement expenditures or qualified new
62	62	rail infrastructure expenditures may claim a tax credit against
63	63	.229331.2 underscored material = new
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90	90	the taxpayer's tax liability for that taxable year imposed
91	91	pursuant to the Corporate Income and Franchise Tax Act. The
92	92	tax credit provided by this section may be referred to as the
93	93	"rail infrastructure corporate income tax credit".
94	94	B. The amount of credit that may be allowed
95	95	pursuant to this section shall be equal to fifty percent of a
96	96	taxpayer's qualified reconstruction or replacement expenditures
97	97	or qualified new rail infrastructure expenditures; provided
98	98	that:
99	99	(1) for qualified reconstruction or
100	100	replacement expenditures, the amount of tax credit shall not
101	101	exceed an amount equal to the product of five thousand dollars
102	102	($5,000) multiplied by the number of miles of railroad track
103	103	owned or leased in the state by the taxpayer as of the close of
104	104	the taxable year; and
105	105	(2) for qualified new rail infrastructure
106	106	expenditures, the amount of tax credit shall not exceed one
107	107	million dollars ($1,000,000) for each new rail-served customer
108	108	project of the taxpayer.
109	109	C. A taxpayer that seeks to claim a tax credit
110	110	provided by this section shall apply for a certificate of
111	111	eligibility from the department of transportation during the
112	112	taxable year in which, or within three months after, the
113	113	qualified reconstruction or replacement expenditures or
114	114	qualified new rail infrastructure expenditures are incurred.
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143	143	The application shall include the number of miles of railroad
144	144	track that the taxpayer owns or leases in New Mexico, a
145	145	description of the amount of qualified reconstruction or
146	146	replacement expenditures or qualified new rail infrastructure
147	147	expenditures completed, supporting expenditure detail and the
148	148	amount of tax credit requested.
149	149	D. If the department of transportation determines
150	150	that a taxpayer is a railroad and meets the requirements to
151	151	claim a tax credit pursuant to this section, that department
152	152	shall issue to the taxpayer a dated certificate of eligibility
153	153	providing the amount of the tax credit for which the taxpayer
154	154	is eligible and the taxable year in which the credit may be
155	155	claimed. The department of transportation shall provide the
156	156	taxation and revenue department with the certificates of
157	157	eligibility issued pursuant to this subsection in an electronic
158	158	format at regularly agreed-upon intervals.
159	159	E. The department of transportation may certify a
160	160	maximum annual aggregate amount of credits of six million
161	161	dollars ($6,000,000) per calendar year. If a taxpayer applies
162	162	for and meets the requirements for the tax credit, but the
163	163	maximum aggregate amount of credits has been certified for that
164	164	taxable year, the department of transportation shall issue the
165	165	taxpayer a certificate of eligibility for the next taxable year
166	166	in which there are available certifications. The department of
167	167	transportation shall publish to its website on a regular basis
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196	196	the number of rail infrastructure corporate income tax credits
197	197	that have been certified in each calendar year. Completed
198	198	applications shall be made on forms and in the manner
199	199	prescribed by the department of transportation and considered
200	200	in the order received.
201	201	F. To receive a tax credit provided by this
202	202	section, a taxpayer shall claim the credit on forms and in the
203	203	manner prescribed by the department within twelve months
204	204	following the calendar year in which the certificate of
205	205	eligibility was issued. The claim shall include a certificate
206	206	of eligibility issued pursuant to this section.
207	207	G. A certificate of eligibility issued pursuant to
208	208	this section may either be submitted by the taxpayer with that
209	209	taxpayer's return or be sold, exchanged or otherwise
210	210	transferred to another taxpayer. The parties to such a
211	211	transaction shall notify the department of the sale, exchange
212	212	or transfer within ten days of the sale, exchange or transfer.
213	213	The notification shall include the names, addresses and
214	214	taxpayer identification numbers of the parties to the transfer,
215	215	the amount of the credit being transferred, the year that the
216	216	credit was originally allowed to the transferring taxpayer and
217	217	the taxable year or years for which the credit may be claimed.
218	218	H. That portion of a tax credit that exceeds a
219	219	taxpayer's tax liability in the taxable year in which the tax
220	220	credit is claimed shall not be refunded but may be carried
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249	249	forward for a maximum of five consecutive taxable years.
250	250	I. The credit provided by this section shall be
251	251	included in the tax expenditure budget pursuant to Section
252	252	7-1-84 NMSA 1978, including the total annual aggregate cost of
253	253	the credit.
254	254	J. The department of transportation may promulgate
255	255	rules necessary for administering the provisions of this
256	256	section.
257	257	K. As used in this section:
258	258	(1) "qualified new rail infrastructure
259	259	expenditures" means gross expenditures for new rail
260	260	infrastructure incurred by a taxpayer, including the new
261	261	construction of industrial leads, switches, sidings, rail
262	262	loading docks and transloading structures involved with
263	263	servicing new customer locations or existing customer
264	264	expansions adjacent to a railroad located in New Mexico;
265	265	(2) "qualified reconstruction or replacement
266	266	expenditures" means gross expenditures for maintenance,
267	267	reconstruction or replacement of railroad infrastructure,
268	268	including track, roadbed, bridges, industrial leads, sidings
269	269	and track-related structures in New Mexico that are owned or
270	270	leased by a taxpayer claiming the credit provided by this
271	271	section. "Qualified reconstruction or replacement
272	272	expenditures" does not include expenditures used to generate a
273	273	federal tax credit or expenditures funded by a state or federal
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302	302	grant;
303	303	(3) "railroad" means a railroad that is
304	304	classified by the federal surface transportation board as a
305	305	class two or class three railroad located wholly or partly in
306	306	New Mexico or an owner or lessee of a rail siding, yard track,
307	307	industrial spur or industry track located in New Mexico on or
308	308	adjacent to a railroad; and
309	309	(4) "rail-served customer project" means
310	310	construction of railroad infrastructure to provide rail
311	311	service."
312	312	SECTION 2. Section 7-1-8.8 NMSA 1978 (being Laws 2019,
313	313	Chapter 87, Section 2, as amended) is amended to read:
314	314	"7-1-8.8. INFORMATION THAT MAY BE REVEALED TO OTHER STATE
315	315	AND LEGISLATIVE AGENCIES.--An employee of the department may
316	316	reveal confidential return information to the following
317	317	agencies; provided that a person who receives the information
318	318	on behalf of the agency shall be subject to the penalties in
319	319	Section 7-1-76 NMSA 1978 if the person fails to maintain the
320	320	confidentiality required:
321	321	A. a committee of the legislature for a valid
322	322	legislative purpose, return information concerning any tax or
323	323	fee imposed pursuant to the Cigarette Tax Act;
324	324	B. the attorney general, return information
325	325	acquired pursuant to the Cigarette Tax Act for purposes of
326	326	Section 6-4-13 NMSA 1978 and the master settlement agreement
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355	355	defined in Section 6-4-12 NMSA 1978;
356	356	C. the commissioner of public lands, return
357	357	information for use in auditing that pertains to rentals,
358	358	royalties, fees and other payments due the state under land
359	359	sale, land lease or other land use contracts;
360	360	D. the secretary of [human services ] health care
361	361	authority or the secretary's delegate under a written agreement
362	362	with the department:
363	363	(1) the last known address with date of all
364	364	names certified to the department as being absent parents of
365	365	children receiving public financial assistance, but only for
366	366	the purpose of enforcing the support liability of the absent
367	367	parents by the child support enforcement division or any
368	368	successor organizational unit;
369	369	(2) return information needed for reports
370	370	required to be made to the federal government concerning the
371	371	use of federal funds for low-income working families;
372	372	(3) return information of low-income taxpayers
373	373	for the limited purpose of outreach to those taxpayers;
374	374	provided that the [human services department ] health care
375	375	authority shall pay the department for expenses incurred by the
376	376	department to derive the information requested by the [human
377	377	services department] health care authority if the information
378	378	requested is not readily available in reports for which the
379	379	department's information systems are programmed;
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408	408	(4) return information required to administer
409	409	the Health Care Quality Surcharge Act; and
410	410	(5) return information in accordance with the
411	411	provisions of the Easy Enrollment Act;
412	412	E. the department of information technology, by
413	413	electronic media, a database updated quarterly that contains
414	414	the names, addresses, county of address and taxpayer
415	415	identification numbers of New Mexico personal income tax
416	416	filers, but only for the purpose of producing the random jury
417	417	list for the selection of petit or grand jurors for the state
418	418	courts pursuant to Section 38-5-3 NMSA 1978;
419	419	F. the state courts, the random jury lists produced
420	420	by the department of information technology under Subsection E
421	421	of this section;
422	422	G. the director of the New Mexico department of
423	423	agriculture or the director's authorized representative, upon
424	424	request of the director or representative, the names and
425	425	addresses of all gasoline or special fuel distributors,
426	426	wholesalers and retailers;
427	427	H. the public regulation commission, return
428	428	information with respect to the Corporate Income and Franchise
429	429	Tax Act required to enable the commission to carry out its
430	430	duties;
431	431	I. the state racing commission, return information
432	432	with respect to the state, municipal and county gross receipts
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461	461	taxes paid by racetracks;
462	462	J. the gaming control board, tax returns of license
463	463	applicants and their affiliates as provided in Subsection E of
464	464	Section 60-2E-14 NMSA 1978;
465	465	K. the director of the workers' compensation
466	466	administration or to the director's representatives authorized
467	467	for this purpose, return information to facilitate the
468	468	identification of taxpayers that are delinquent or noncompliant
469	469	in payment of fees required by Section 52-1-9.1 or 52-5-19 NMSA
470	470	1978;
471	471	L. the secretary of workforce solutions or the
472	472	secretary's delegate, return information for use in enforcement
473	473	of unemployment insurance collections pursuant to the terms of
474	474	a written reciprocal agreement entered into by the department
475	475	with the secretary of workforce solutions for exchange of
476	476	information;
477	477	M. the New Mexico finance authority, information
478	478	with respect to the amount of municipal and county gross
479	479	receipts taxes collected by municipalities and counties
480	480	pursuant to any local option municipal or county gross receipts
481	481	taxes imposed, and information with respect to the amount of
482	482	governmental gross receipts taxes paid by every agency,
483	483	institution, instrumentality or political subdivision of the
484	484	state pursuant to Section 7-9-4.3 NMSA 1978;
485	485	N. the superintendent of insurance, return
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514	514	information with respect to the premium tax and the health
515	515	insurance premium surtax;
516	516	O. the secretary of finance and administration or
517	517	the secretary's designee, return information concerning a
518	518	credit pursuant to the Film Production Tax Credit Act;
519	519	P. the secretary of economic development or the
520	520	secretary's designee, return information concerning a credit
521	521	pursuant to the Film Production Tax Credit Act;
522	522	Q. the secretary of public safety or the
523	523	secretary's designee, return information concerning the Weight
524	524	Distance Tax Act;
525	525	R. the secretary of transportation or the
526	526	secretary's designee, return information concerning the Weight
527	527	Distance Tax Act and return information concerning rail
528	528	infrastructure corporate income tax credits for which
529	529	eligibility is certified or otherwise determined by the
530	530	secretary or the secretary's designee ;
531	531	S. the secretary of energy, minerals and natural
532	532	resources or the secretary's designee, return information
533	533	concerning tax credits or deductions for which eligibility is
534	534	certified or otherwise determined by the secretary or the
535	535	secretary's designee;
536	536	T. the secretary of environment or the secretary's
537	537	designee, return information concerning tax credits for which
538	538	eligibility is certified or otherwise determined by the
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567	567	secretary or the secretary's designee; and
568	568	U. the secretary of state or the secretary's
569	569	designee, taxpayer information required to maintain voter
570	570	registration records and as otherwise provided in the Election
571	571	Code."
572	572	SECTION 3. APPLICABILITY.--The provisions of this act
573	573	apply to taxable years beginning on or after January 1, 2025.
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