NM IDEA is committed to improving the State's business climate to encourage job creation and investment in our communities.
2019 Legislative Priorities
· NMIDEA supports funding the New Mexico Partnership at $3 million annually.
For the New Mexico Partnership, the only business recruitment arm for the State of New Mexico and the entity charged with marketing all regions and assets of New Mexico to the world, the current full budget (personal, marketing, etc.) of $1.1 million is not adequate to ensure New Mexico can bring more jobs to our state. As comparison, the City of Corpus Christi, TX (pop. 305,215) spends $1,246,970 on marketing their community alone, nearly $150,000 more than what a statewide entity in New Mexico is charged to do.
· NMIDEA supports $1.5 million in funding for the Economic Development Grant Fund.
The continued growth and development of local and regional economic development agencies is critical to ensure that communities across the state are able to assist new businesses, work to retain and grow existing businesses, and recruit new businesses. However, many communities throughout New Mexico, particularly rural communities, do not have the financial capacity to hire adequate personnel. Funding the Economic Development Grant Fund allows the state to provide matching state grants to local and regional economic development agencies to expand their business attraction efforts and entice the retention and expansion of local companies.
· NMIDEA supports boosting communities’ capacity for incentivizing job creation and for directing the proceeds of a local option gross receipts tax to economic development projects and increase funding for economic development services.
The Local Economic Development Act (LEDA) allows municipalities and counties to ask for voter approval to impose an infrastructure gross receipts tax (GRT) from which the revenue may be used for economic development purposes. Unfortunately, the rate of the tax allowed in New Mexico is a fraction of a similar tax in Texas, and very little of the proceeds may be used for economic development marketing and professional services. This concept does not have a financial implication to the State’s budget, but allows communities to be more heavily involved in their economic development planning and focus.
· NMIDEA supports spurring collaborative and innovation discussions to create new economic development concepts and ideas to enhance New Mexico economy. Topics of discussion should include:
Economic development programs must be financed through more permanent sources of funding (i.e., dedicated sources of revenue for the State of New Mexico) and must have full-funding levels within the Economic Development Department’s base budget, rather than annually requesting additional, necessary funding through special appropriations. The message to companies considering New Mexico for a location or considering expanding here is stronger when we appropriately fund our economic development programs and incentives.
New Mexico must enact specific action plans toward the recruitment of talent and critical skills to the state. We suggest a stronger collaboration between the economic development community and the State’s institutions of higher education’s alumni bases. These individuals have lived in New Mexico and have an affinity with their past home. They are also strong examples of our exported talent to companies with presence elsewhere. Both concepts create economic development and corporate partnership opportunities for New Mexico and our institutions of higher education.
New Mexico is running out of quality commercial and industrial spaces. We strongly support efforts that will incentivize new development of these spaces throughout New Mexico.
· NMIDEA supports maintaining critical economic development tax credits and making them more accessible for qualifying companies.
We support further corrections to the High Wage Jobs Tax Credit that will reduce complexity and confusion, reduce delays in approvals and processing, and creates recognition of market fluctuations that do not penalize use of the credit by businesses.
We support making the Angel Investment Tax Credit a refundable tax credit to incentivize out-of-state investments to flow into New Mexico based companies.
We support efforts to streamline the tax protest process and reduce unnecessary formal litigation to ensure efficient and predictable decisions from the Taxation & Revenue Department regarding applications for economic development tax incentives.
We support continuance of the Investment Tax Credit and encourage further enhancements to the credit, including con-version to a deduction and removal of the job creation requirement, in support of capital investment in New Mexico communities and parity with what other states offer.
· NMIDEA supports policies that increase broadband deployment through public-private partnerships and initiatives, including legislative actions to share infrastructure and access, to create tax policies that incentivize infrastructure development, and to promote adoption of new technologies.
We support legislation that further encourages broadband deployment through use of a tax deduction for broadband investment, and legislation that provides an appropriation to help broadband carriers deploy broadband throughout the state.
We also encourage the consideration of investment in broadband as an eligible investment for the Investment Tax Credit.
· NMIDEA supports continued funding and support of critical economic development programs, including: Job Training Incentive Program (JTIP), Local Economic Development Act (LEDA), Main Street, Soloworks, Office of Science and Technology, and the Office of International Trade.
· NMIDEA supports past Jobs Council initiatives, including introducing physics in middle schools.
NMIDEA Contact Information:
Eileen Chavez Yarborough, Board President - email@example.com, 505-287-6685
Eric Montgomery, Board Legislative Committee Chair, firstname.lastname@example.org, 575-621-8876
Jason Espinoza, Lobbyist - email@example.com, 505-417-4001