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Committee approves amended railroad infrastructure income tax credit bill
Summary
The committee voted unanimously 10–0 to pass an amended HB298 establishing a 50% state income tax credit to maintain or replace short‑line railroad track (limited to $5,000 per mile) and reduced program cap from $6 million to $1 million.
A House Commerce committee approved an amended HB298 to create a New Mexico Railroad Infrastructure Income Tax Credit aimed at short‑line rail maintenance and replacement.
Under the amendment described to the committee, the bill provides a 50% state income tax credit on costs to maintain or replace existing short‑line railroad tracks owned or leased in New Mexico, limited to $5,000 per mile. The amendment removed a second component from the original proposal and reduced the program cap from $6,000,000 to $1,000,000. The sponsor said the change preserves support for marginal redevelopment projects and provides a longer runway for projects to be financially feasible.
Supporters including representatives of Southwest Railroad and local development interests said short‑line rail connects customers and freight networks and that the incentive would help preserve critical regional infrastructure. Committee members asked for examples and were given a sample project near UNM with an estimated tax increase after stabilization to illustrate the long‑term tax base benefits.
The committee voted to give HB298 a due‑pass as amended recommendation, 10–0. The bill will proceed to the next legislative step.
