Did you know...
The state of New Mexico offers some tax incentives to businesses?
This author didn't know there were so many tax incentives through the state of New Mexico.
And this author certainly doesn' t know all the details of each tax break available. It certainly looks like New Mexico is doing its share to help small communities with economic development.
Read through this list...
New Mexico Tax Breaks for Businesses
1. No inventory tax
2. Tax Exemption Related to IRBs. (Industrial Revenue Bond) Watch this blog for more info
about what an IRB is and how it works.
3. Manufacturing Investment Tax Credit.
4. Technology Jobs Tax Credit. A company can take a credit of 4 percent of technological research costs against gross receipts, compensating or payroll taxes, and the credits can be carried forward.
5. Double-Weighted Sales Factor. This is a favorable way to calculate New Mexico corporate income tax liability, especially for companies with investment in plant and payroll in New Mexico but substantial product sales outside New Mexico.
6. Research and Development Gross Receipts Tax Deduction. Services exported from the state, are exempt from GRT.
7. Research and Development Small Business Tax Credit.
8 High-Wage Jobs Tax Credit.
9. Child Care Income Tax Credit. Employers can take a corporate income tax credit for employees’ childcare services they provide or pay for.
10. Aerospace Tax Deductions. New Mexico offers three deductions for the aerospace industry.
11. Renewable Energy Production Credit. A qualified energy generator can earn credit.
12. Distilling and Brewing Preferential Tax Rate.
Now ask yourself, what more can Bosque Farms provide?
Let's just take one option that this author has heard as an idea for keeping businesses here in Bosque Farms and attracting new ones. Lowering Gross Reciept Taxes.
Did you know that Bosque Farms already has one of the lowest GRT rates in the Valencia County? Did you know that Bosque Farms relies on GRT to pay the men who keep the sewer running and lease the police cars? The money has to come from somewhere. If it is lowered by even a little bit each resident would have to spend even more here in Bosque Farms to make up for the decrease revenue Bosque Farms would be recieving or your property taxes might be raised or your water rates.
It is like cutting a pie, you cut one slice smaller, the other slices will be larger.
How will decreasing GRT keep businesses? The theory is that with lower GRT you will spend more and the businesses will earn more that they get to keep in their pocket thus they will have more to spend... you get the idea. But if your paying more in water, sewer or property tax rates will you spend more? This author won't. In fact, this author will spend less.
Lowering GRT is probably not going to happen and it really doesn't make sense within the bigger picture. Watch this blog for other economic development ideas and some more good reasons voting no on any economic development bond issue put before us voters.
Labels: Businesses, Reader's Posts