(The Associated Press circulated the following on January 30.)
SANTA FE, N.M. — The House approved a proposal Wednesday to extend a tax incentive for a planned railroad facility in southern New Mexico.
Under a law enacted last year, the state agreed to remove the gross receipts and compensating taxes from locomotive fuel if the Union Pacific Corp. built a $150 million terminal facility near Santa Teresa. The project is to include a locomotive fueling station.
If construction of the facility begins by January 2009, the tax break will take effect July 1, 2009.
Rep. Nathan Cote, D-Las Cruces, said the bill would provide a “safety valve” in case of a construction delay. The tax incentive offer will be extended for another year. If construction starts by Jan. 1, 2010, then the tax break will kick in on July 1, 2010.
Union Pacific is working with the Bureau of Land Management and the state Land Office to acquire land for the terminal.
The state offered the tax break as an economic development incentive because the terminal is to jobs to the area.
“I think this contingent clause is very important so we can begin construction and add those 300 jobs in southern New Mexico,” Cote said.
The House unanimously approved the bill and sent it to the Senate. Gov.
Bill Richardson supports the proposal.
The locomotive fuel tax bill is HB387.