Proposes a rail infrastructure corporate income tax credit for class 2 and 3 railroads that construct or reconstruct railroad systems.

Proposes a rail infrastructure corporate income tax credit for class 2 and 3 railroads in the state that construct or reconstruct railroad systems. The credit is 50 percent of a
taxpayer�s qualified reconstruction or replacement costs or qualified new rail infrastructure costs, with total credits limited to $1 million for new rail infrastructure expenditures. For reconstruction or replacement expenditures, the amount of credit shall not exceed $5,000 multiplied by the number of miles of railroad track owned or leased in the state at the end of the taxable year. Certification for these credits is done by the Department of Transportation (NMDOT), which may
certify a maximum aggregate of $6 million per calendar year. The credit is not refundable but the amount that exceeds the tax liability in the taxable year may be carried forward for five
consecutive years. The credit may be sold, exchanged, or transferred to another taxpayer.

Pending Committee action.

01/23/2025 Referred to Senate Committees on Tax, Business and Transportation, and Finance.