The proposed bill establishes a new Rail Infrastructure Corporate Income Tax Credit aimed at incentivizing railroad companies to invest in the reconstruction, replacement, or new construction of rail infrastructure in New Mexico. Taxpayers who qualify can claim a credit equal to fifty percent of their eligible expenditures, with specific caps on the amount based on the type of expenditure. For reconstruction or replacement, the credit is limited to $5,000 per mile of track, while for new infrastructure projects, it is capped at $1 million per new rail-served customer project. The bill also outlines the application process for taxpayers to obtain a certificate of eligibility from the Department of Transportation, which will manage the total annual aggregate amount of credits available, set at $6 million.

Additionally, the bill amends existing law to allow the Department of Transportation to share information regarding rail infrastructure corporate income tax credits with the Taxation and Revenue Department. This includes provisions for maintaining confidentiality and ensuring that the information is used appropriately. The bill is set to take effect for taxable years beginning on or after January 1, 2026.

Statutes affected:
introduced version: 7-1-8.8