Committee recommends due pass for hotel restoration tax credit bill

Melissa Mitten, senior director of state and local government affairs for the American Hotel and Lodging Association, told the House committee she supported House Bill 506, a proposed tax credit to support the restoration and rehabilitation of qualifying hotels.

"I appreciate the opportunity to testify and support House Bill 506," Mitten said, and described the measure as aimed at allowing property owners to invest to improve guest experiences and create jobs. She said the New Mexico hotel industry employs nearly 53,000 people and pays more than $2.3 billion in wages and salaries.

Mitten told lawmakers the credit targets smaller and older properties and includes a minimum-size and renovation requirement: eligible properties must have at least 15 guest rooms and be willing to renovate at least 40% of rooms. She said the bill dovetails with Route 66 and would help hotels in rural towns such as Silver City and Santa Rosa.

Representative Matthews asked whether the bill would flow to hotels that are viable in low‑traffic areas and whether the program requires feasibility or economic impact analysis. Mitten and committee members said the bill contemplates partnering with the state tourism department, which the witnesses said already assesses grants and economic impacts and would oversee applications and feasibility data.

Representative Murphy described the bill as a jobs and small‑business measure and asked about differences in standards tied to community size; Murphy said she planned to support a due pass while discussing uniform standards offline. After brief discussion, the committee moved and recorded a due pass recommendation for House Bill 506.

The committee did not record a full roll-call transcript in the submitted excerpt; a due pass recommendation was entered and the committee proceeded to the next agenda item.

The measure will next be scheduled for further consideration on the House floor or by subsequent committee action.