SB 93

                                1  SENATE BILL 93
                                2      57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
                                3  INTRODUCED BY
                                4  Crystal Brantley and Carrie Hamblen and Gabriel Ramos
                                5
                                6
                                7
                                8
                                9
                                10  AN ACT
                                11   RELATING TO TAXATION; CREATING THE RAIL INFRASTRUCTURE
                                12   CORPORATE INCOME TAX CREDIT; ALLOWING THE TAXATION AND REVENUE
                                13   DEPARTMENT AND THE DEPARTMENT OF TRANSPORTATION TO SHARE
                                14   INFORMATION CONCERNING RAIL INFRASTRUCTURE CORPORATE INCOME TAX
                                15   CREDITS.
                                16
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                                17   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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                                18        SECTION 1.    A new section of the Corporate Income and
                                19   Franchise Tax Act is enacted to read:
                                20        "[NEW MATERIAL] RAIL INFRASTRUCTURE CORPORATE INCOME TAX
                                21   CREDIT.--
                                22  A.   For taxable years prior to January 1, 2036, a
                                23   taxpayer that is a railroad that incurs qualified
                                24   reconstruction or replacement expenditures or qualified new
                                25   rail infrastructure expenditures may claim a tax credit against
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                                1    the taxpayer's tax liability for that taxable year imposed
                                2    pursuant to the Corporate Income and Franchise Tax Act.     The
                                3    tax credit provided by this section may be referred to as the
                                4    "rail infrastructure corporate income tax credit".
                                5  B.   The purpose of the rail infrastructure corporate
                                6    income tax credit is to incentivize incremental expansions or
                                7    improvements to rail infrastructure that would not reasonably
                                8    occur but for the availability of the credit, increase freight
                                9    capacity, reduce highway externalities and enhance the
                                10   competitiveness of New Mexico businesses.
                                11  C.   The amount of credit that may be allowed
                                12   pursuant to this section shall be equal to fifty percent of a
                                13   taxpayer's qualified reconstruction or replacement expenditures
                                14   or qualified new rail infrastructure expenditures; provided
                                15   that:
                                16  (1)   for qualified reconstruction or
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                                17   replacement expenditures, the amount of tax credit shall not
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                                18   exceed an amount equal to the product of five thousand dollars
                                19   ($5,000) multiplied by the number of miles of railroad track
                                20   owned or leased in the state by the taxpayer as of the close of
                                21   the taxable year; and
                                22  (2)   for qualified new rail infrastructure
                                23   expenditures, the amount of tax credit shall not exceed one
                                24   million dollars ($1,000,000) for each new rail-served customer
                                25   project of the taxpayer.
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                                1  D.   A taxpayer that seeks to claim a tax credit
                                2    provided by this section shall apply for a certificate of
                                3    eligibility from the department of transportation during the
                                4    taxable year in which, or within three months after, the
                                5    qualified reconstruction or replacement expenditures or
                                6    qualified new rail infrastructure expenditures are incurred.
                                7    The application shall include the number of miles of railroad
                                8    track that the taxpayer owns or leases in New Mexico, a
                                9    description of the amount of qualified reconstruction or
                                10   replacement expenditures or qualified new rail infrastructure
                                11   expenditures completed, supporting expenditure detail and the
                                12   amount of tax credit requested.
                                13  E.   A taxpayer shall apply for certification of
                                14   eligibility for the credit provided by this section from the
                                15   department of transportation on forms and in the manner
                                16   prescribed by that department.    The total annual aggregate
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                                17   amount of credits that may be certified in any calendar year is
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                                18   six million dollars ($6,000,000).      Completed applications shall
                                19   be considered in the order received.     Applications for
                                20   certification received after this limitation has been met in a
                                21   calendar year shall not be approved for that calendar year, but
                                22   shall be considered for certification in the following calendar
                                23   year.   The department of transportation shall publish on its
                                24   website on a regular basis the number of rail infrastructure
                                25   corporate income tax credits that have been certified in each
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                                1    calendar year.
                                2  F.   If the department of transportation determines
                                3    that a taxpayer is a railroad and meets the requirements to
                                4    claim a tax credit pursuant to this section, that department
                                5    shall issue to the taxpayer a dated certificate of eligibility
                                6    providing the amount of the tax credit for which the taxpayer
                                7    is eligible and the taxable year in which the credit may be
                                8    claimed.    The department of transportation shall provide the
                                9    taxation and revenue department with the certificates of
                                10   eligibility issued pursuant to this subsection in an electronic
                                11   format at regularly agreed-upon intervals.
                                12  G.   A certificate of eligibility issued pursuant to
                                13   this section may either be submitted by the taxpayer with that
                                14   taxpayer's return or be sold, exchanged or otherwise
                                15   transferred to another taxpayer for the full value of the
                                16   credit.    The parties to such a transaction shall notify the
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                                17   department of the sale, exchange or transfer within ten days of
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                                18   the sale, exchange or transfer.    The notification shall include
                                19   the names, addresses and taxpayer identification numbers of the
                                20   parties to the transfer, the amount of the credit being
                                21   transferred, the year that the credit was originally allowed to
                                22   the transferring taxpayer and the taxable year or years for
                                23   which the credit may be claimed.
                                24  H.   To receive a tax credit provided by this
                                25   section, a taxpayer shall claim the credit on forms and in the
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                                1    manner prescribed by the department within twelve months
                                2    following the calendar year in which the certificate of
                                3    eligibility was issued.    The claim shall include a certificate
                                4    of eligibility issued pursuant to this section.
                                5  I.   That portion of a tax credit that exceeds a
                                6    taxpayer's tax liability in the taxable year in which the tax
                                7    credit is claimed shall not be refunded but may be carried
                                8    forward for a maximum of five consecutive taxable years.
                                9  J.   The department of transportation shall analyze
                                10   the effectiveness and cost of the credit and whether the credit
                                11   is performing the purpose for which it was created and shall
                                12   report the number of jobs retained or created as a result of
                                13   the credit and any other information required by the
                                14   legislature to aid in evaluating the effectiveness of the
                                15   credit.
                                16  K.   The credit provided by this section shall be
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                                17   included in the tax expenditure budget pursuant to Section
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                                18   7-1-84 NMSA 1978, including the total annual aggregate cost of
                                19   the credit.
                                20  L.   The department of transportation may promulgate
                                21   rules necessary for administering the provisions of this
                                22   section.
                                23  M.   As used in this section:
                                24  (1)   "qualified new rail infrastructure
                                25   expenditures" means gross expenditures for new rail
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                                1    infrastructure incurred by a taxpayer, including the new
                                2    construction of industrial leads, switches, sidings, rail
                                3    loading docks and transloading structures involved with
                                4    servicing new customer locations or existing customer
                                5    expansions adjacent to a railroad located in New Mexico;
                                6  (2)   "qualified reconstruction or replacement
                                7    expenditures" means gross expenditures for maintenance,
                                8    reconstruction or replacement of railroad infrastructure,
                                9    including track, roadbed, bridges, industrial leads, sidings
                                10   and track-related structures in New Mexico that are owned or
                                11   leased by a taxpayer claiming the credit provided by this
                                12   section.    "Qualified reconstruction or replacement
                                13   expenditures" does not include expenditures used to generate a
                                14   federal tax credit or expenditures funded by a state or federal
                                15   grant;
                                16  (3)   "railroad" means a railroad that is
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                                17   classified by the federal surface transportation board as a
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                                18   class two or class three railroad located wholly or partly in
                                19   New Mexico or an owner or lessee of a rail siding, yard track,
                                20   industrial spur or industry track located in New Mexico on or
                                21   adjacent to a railroad; and
                                22  (4)   "rail-served customer project" means
                                23   construction of railroad infrastructure to provide rail
                                24   service."
                                25        SECTION 2.    Section 7-1-8.8 NMSA 1978 (being Laws 2019,
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                                1    Chapter 87, Section 2, as amended) is amended to read:
                                2  "7-1-8.8.    INFORMATION THAT MAY BE REVEALED TO OTHER STATE
                                3    AND LEGISLATIVE AGENCIES.--An employee of the department may
                                4    reveal confidential return information to the following
                                5    agencies; provided that a person who receives the information
                                6    on behalf of the agency shall be subject to the penalties in
                                7    Section 7-1-76 NMSA 1978 if the person fails to maintain the
                                8    confidentiality required:
                                9  A.   a committee of the legislature for a valid
                                10   legislative purpose, return information concerning any tax or
                                11   fee imposed pursuant to the Cigarette Tax Act;
                                12  B.   the attorney general, return information
                                13   acquired pursuant to the Cigarette Tax Act for purposes of
                                14   Section 6-4-13 NMSA 1978 and the master settlement agreement
                                15   defined in Section 6-4-12 NMSA 1978;
                                16  C.   the commissioner of public lands, return
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                                17   information for use in auditing that pertains to rentals,
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                                18   royalties, fees and other payments due the state under land
                                19   sale, land lease or other land use contracts;
                                20  D.   the secretary of health care authority or the
                                21   secretary's delegate under a written agreement with the
                                22   department:
                                23  (1)   the last known address with date of all
                                24   names certified to the department as being absent parents of
                                25   children receiving public financial assistance, but only for
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                                1    the purpose of enforcing the support liability of the absent
                                2    parents by the child support enforcement division or any
                                3    successor organizational unit;
                                4  (2)   return information needed for reports
                                5    required to be made to the federal government concerning the
                                6    use of federal funds for low-income working families;
                                7  (3)   return information of low-income taxpayers
                                8    for the limited purpose of outreach to those taxpayers;
                                9    provided that the health care authority [department] shall pay
                                10   the department for expenses incurred by the department to
                                11   derive the information requested by the health care authority
                                12   [department] if the information requested is not readily
                                13   available in reports for which the department's information
                                14   systems are programmed;
                                15  (4)   return information required to administer
                                16   the Health Care Quality Surcharge Act and the Health Care
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                                17   Delivery and Access Act; and
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                                18  (5)   return information in accordance with the
                                19   provisions of the Easy Enrollment Act;
                                20  E.   the department of information technology, by
                                21   electronic media, a database updated quarterly that contains
                                22   the names, addresses, county of address and taxpayer
                                23   identification numbers of New Mexico personal income tax
                                24   filers, but only for the purpose of producing the random jury
                                25   list for the selection of petit or grand jurors for the state
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                                1    courts pursuant to Section 38-5-3 NMSA 1978;
                                2  F.   the state courts, the random jury lists produced
                                3    by the department of information technology under Subsection E
                                4    of this section;
                                5  G.   the director of the New Mexico department of
                                6    agriculture or the director's authorized representative, upon
                                7    request of the director or representative, the names and
                                8    addresses of all gasoline or special fuel distributors,
                                9    wholesalers and retailers;
                                10  H.   the public regulation commission, return
                                11   information with respect to the Corporate Income and Franchise
                                12   Tax Act required to enable the commission to carry out its
                                13   duties;
                                14  I.   the state racing commission, return information
                                15   with respect to the state, municipal and county gross receipts
                                16   taxes paid by racetracks;
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                                17  J.   the gaming control board, tax returns of license
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                                18   applicants and their affiliates as provided in Subsection E of
                                19   Section 60-2E-14 NMSA 1978;
                                20  K.   the director of the workers' compensation
                                21   administration or to the director's representatives authorized
                                22   for this purpose, return information to facilitate the
                                23   identification of taxpayers that are delinquent or noncompliant
                                24   in payment of fees required by Section 52-1-9.1 or 52-5-19 NMSA
                                25   1978;
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                                1  L.   the secretary of workforce solutions or the
                                2    secretary's delegate, return information for use in enforcement
                                3    of unemployment insurance collections pursuant to the terms of
                                4    a written reciprocal agreement entered into by the department
                                5    with the secretary of workforce solutions for exchange of
                                6    information;
                                7  M.   the New Mexico finance authority, information
                                8    with respect to the amount of municipal and county gross
                                9    receipts taxes collected by municipalities and counties
                                10   pursuant to any local option municipal or county gross receipts
                                11   taxes imposed, and information with respect to the amount of
                                12   governmental gross receipts taxes paid by every agency,
                                13   institution, instrumentality or political subdivision of the
                                14   state pursuant to Section 7-9-4.3 NMSA 1978;
                                15  N.   the superintendent of insurance, return
                                16   information with respect to the premium tax and the health
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                                17   insurance premium surtax;
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                                18  O.   the secretary of finance and administration or
                                19   the secretary's designee, return information concerning a
                                20   credit pursuant to the Film Production Tax Credit Act;
                                21  P.   the secretary of economic development or the
                                22   secretary's designee, return information concerning a credit
                                23   pursuant to the Film Production Tax Credit Act;
                                24  Q.   the secretary of public safety or the
                                25   secretary's designee, return information concerning the Weight
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                                1    Distance Tax Act;
                                2  R.   the secretary of transportation or the
                                3    secretary's designee, return information concerning the Weight
                                4    Distance Tax Act and return information concerning rail
                                5    infrastructure corporate income tax credits for which
                                6    eligibility is certified or otherwise determined by the
                                7    secretary or the secretary's designee;
                                8  S.   the secretary of energy, minerals and natural
                                9    resources or the secretary's designee, return information
                                10   concerning tax credits or deductions for which eligibility is
                                11   certified or otherwise determined by the secretary or the
                                12   secretary's designee;
                                13  T.   the secretary of environment or the secretary's
                                14   designee, return information concerning tax credits for which
                                15   eligibility is certified or otherwise determined by the
                                16   secretary or the secretary's designee; and
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                                17  U.   the secretary of state or the secretary's
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                                18   designee, taxpayer information required to maintain voter
                                19   registration records and as otherwise provided in the Election
                                20   Code."
                                21        SECTION 3.     APPLICABILITY.--The provisions of this act
                                22   apply to taxable years beginning on or after January 1, 2026.
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