Tuesday, February 14, 2012
HIRE Initiative, Tax Bills Pass Senate
Several of the bills included in the Democratic Caucus's HIRE Initiative and Tax Initiative passed out of the Senate this week and will be sent to the House. Senate Bills 9, 145, 16 and 311 were all focused on helping small businesses grow, and many received bipartisan support.
"These bills are all steps in making it easier to help the state have a fair tax code," Senator Michael Sanchez said. "From getting New Mexico graduates hired, to making sure that businesses invest in the state and pay their fair share of taxes these bills make sure that fairness is the preeminent concept in our legislation."
Senate Bill 9, sponsored by Senator Peter Wirth, focuses on lowering the overall corporate tax rate for businesses, and making sure that out of state “big box” corporations pay the same rate as in state ones. This piece of legislation would be revenue neutral.
Senate Bill 145, sponsored by Senator Tim Eichenberg, was passed on Sunday, February 12, and would maintain the three percent increase limit on property taxes, which would ease the burden on New Mexicans looking to buy a new home.
Senator Tim Keller's Senate Bill 16 will provide an incentive to businesses that hire graduate and professional students in the science, technology, engineering and health fields and will strategically implement job opportunities in line with the higher education priorities of the State of New Mexico.
Senate Bill 311, sponsored by Senator John Sapien, would require additional investment in New Mexico by companies to then qualify for a tax credit against their corporate income tax. It would be tiered and correlated to the amount they invest in New Mexico—the more they invest in the state, the longer they can claim the credit. There is a sunset on the bill that would cease the tax credit in 2021.
"This bill is designed to give businesses in the manufacturing industry a credit," Senator Sapien said. "But only when there is a demonstrable investment in their communities. We are looking to reward actual performance rather than promises.”