RAIL INFRASTRUCTURE TAX CREDIT

SB 129 creates a tax credit for New Mexico railroads to offset costs for infrastructure improvements. It allows eligible railroads (classified as Class 2 or 3 by federal regulators, or owners of rail spurs in NM) to claim a 50% credit on qualified reconstruction/replacement costs (capped at $5,000 per mile of track) or new rail infrastructure projects (capped at $1 million per new customer project). To claim the credit, railroads must first get certification from the Department of Transportation, which limits annual credits to $6 million total. The credit can be carried forward if unused or transferred to another business, but it only applies to state tax liability and excludes federally funded projects.