New Mexico Legislature: Tax Credits, Energy Initiatives among Successes of 2007 Regular Session

With the close of its 2007 regular session, the New Mexico State Legislature wrapped up "one of the most productive sessions in state history." Those were the words of Gov. Bill Richardson, following the legislature's adjournment last month. The governor had outlined a number of economic development and energy initiatives in his 2007 State of the State Address that he hoped would be brought to bear (see the Jan. 15, 2007 issue of the Digest). While not all of the initiatives were realized during the regular session, there were a few victories providing the governor cause to celebrate:

• Senate Bill 418 increases the state's Renewable Portfolio Standard, signed into law by Gov. Richardson in 2004. The bill requires that at least 15 percent of an electric utility's power supply come from renewable sources by 2015 and 20 percent by 2020 -- up from the prior requirement that 10 percent of the state's electricity come from such sources by 2011.
• House Bill 188 creates the Renewable Energy Transmission Authority, which will lead efforts to promote clean energy jobs and resources in New Mexico. The bill's fiscal impact report notes, "The executive budget proposal provides a $1 million non-recurring recommendation to establish the Authority. This bill, however, does not propose any appropriation."
• Tax cuts totaling $84 million in 2007, $102 million in 2008, and $125 million in 2009 were approved by the legislature. The cuts are intended to help spur economic development, healthcare and energy initiatives.

Another development resulting from the regular session is the creation of a new Workforce Solutions Department that would oversee programs currently run by other agencies. House Bill 1280 "transfers all functions, personnel, appropriations, property, contractual obligations, etc. from the Labor Department and the Office of Workforce Training and Development to the new department, effective July 1, 2007." The legislature also passed two bills designed to encourage business activity. The bills would maintain a number of incentives enacted in earlier sessions, including:

• House Bill 839 - provides for tax credits for angel investments and aircraft manufacturing and related companies; makes permanent the state's high-wage jobs tax credit; re-enacts the state's rural jobs tax credit; and creates a gross receipts tax deduction for financial management firms, which "provide high-wage jobs and improve the investment and financial planning sector environment."
• Senate Bill 463 - provides a credit for manufacturers of alternative energy technologies and for producers of alternative energy.

One education item of note, the New Mexico State Legislature passed House Bill 220 -- legislation that creates a math and science advisory council and creates a math and science proficiency fund. The bill appropriates $3 million from the state's general fund to the math and science proficiency fund to support summer math, science and reading institutes. Another $620,000 is targeted "to the public education department to work with national laboratories, other federal science-related facilities, and science and technology businesses to create internships; and to work with the institutions of higher education and the mathematics and science advisory council to increase the rigor of mathematic and science teacher preparation courses."



The extent to which the legislature addressed New Mexico’s water problems - a concern Gov. Richardson expressed in his 2007 State of the State Address - is unclear to SSTI. Press reports indicate the legislature approved $45 million for water and wastewater projects; however, the governor had called for a "Water Innovation Fund to inspire and invest in the latest technological breakthroughs" and no mention of it is made. Repeated requests for more information on the fund were unanswered as of press time.



To see other proposals passed, the governor called for a special session that began on March 20. However, twice senators have quickly voted to adjourn.



Bills cited in this article may be accessed through the New Mexico State Legislature at http://legis.state.nm.us/lcs/. A list of bills acted on by Gov. Richardson is available at: http://legis.state.nm.us/lcs/legRpt/legisreports15dis.asp