New Mexico – Locomotive Fuel Deduction Expanded

SALT Report 2342 – The New Mexico State Legislature recently enacted legislation that expands the deduction for locomotive fuel loaded or used by a common carrier in a locomotive engine from the gross receipts and compensating use tax. The purpose of the deduction is to encourage the construction and operation of locomotive refueling facilities and other railroad capital investments in New Mexico.

Specifically, House Bill 120 lowers the qualifying capital investment amount to include amounts of $50 million or more that will create new or repair existing railroad infrastructure, such as railroad facilities, track, signals, and railroad support networks, located in New Mexico. The deduction applies to investments made after July 1, 2012 and for railroad infrastructure improvements that are not required by a regulatory agency, such as regular or preventative maintenance, or to correct problems that have been identified by an agency as needing corrective action.

The provisions in this Bill are effective July 1, 2013.

For Further Information

New Mexico State Legislature – House Bill 120, Laws 2013