Belen
Legislative actions impacting rural areas were key issues at the 30-day 2002 session, according to a lobbyist with the Association of Commerce and Industry (ACI).
“Water rights, in-plant training and tax credits for alternative energy project and film production were issues which have impact on rural areas,” said Arnold Cordova, a vice president with the ACI, New Mexico’s statewide business advocate.
Belen Chamber of Commerce members received a run down on the 2002 legislative session Tuesday at the Calvary Chapel of the Rio Grande.
“When we were conducting our 30 roundtable sessions around the state, we realized water was a key issue throughout the state,” he said. “The legislature reflected this by passing a bill allocating $30 million for new expenditure by the state engineer’s office.”
Included in the funds is $6 million for eradication of salt cedar plants in the Rio Grande and Pecos river valley.
“Salt cedar is a thirsty weed on our river systems that uses 100 acres of water yearly,” Cordova said. “This project will remove these plants from the bosque.”
Also part of the $30 million is funding for the state engineer’s office to lease back water rights.
“It is critical for New Mexico to buy back the water rights not being used,” he said. “If we don’t, the state will be put on a priority call so we can provide water for our neighbors down in Texas.”
The water banking bill allows for a new mindset, according to Cordova. “Currently, we work on a use-it-or-lose-it mind set. If people don’t use their water rights, they can be taken away, so people are using water needlessly.”
The water banking bill will allow people to use their water rights only when needed so water will not be wasted.
Another key thing that was done was the appropriation of in-plant training dollars, according to Cordova.
“Last year, after we were able to appropriate $9 million for in-plant training, our governor basically called it a waste of taxpayers’ dollars,” he said.
In-plant training is a program for the state’s economic development department that provides an incentive to help businesses grow, bring in new firms and keep businesses here.
“It is probably responsible for Intel, Avonite, Solo Cup and Sud Chemie being here,” he said.
“In-plant training gives a tax credit for hiring new employees. It gives a tax credit to companies during a limited training period.”
Cordova said this program is a proven economic incentive, which has brought more than 15,000 new jobs to New Mexico.
“And our governor calls it a boondoggle, a waste of our taxpayers’ money. In the governor’s budget, he had zero dollars for in-plant training.”
The legislature passed a bill on the final day of the session. The original bill had been for $15 million, but was amended to $10 million before it was approved.
“In-plant training is geared more to rural areas. Businesses in Rio Rancho get 50-cents-on-a-dollar reimbursement, while, in Belen, it would get 70 cents on a dollar,” he said. “That’s why many companies are locating in such areas as Moriarty, Carlsbad, Silver City and Clovis.”
Two other bills which could have impact on rural areas are the renewable energy production credit and film production tax credit.
The renewable energy production credit provides an income tax credit for electricity produced by solar- and wind-power facilities. The tax credit is equal to 1 cent per kilowatt-hour for the first 400,000 kilowatt hours per year.
The film production tax credit will give film production companies a credit equal to 15 percent of their direct production expenditures. This is a financial incentive which should encourage more companies and film projects to select New Mexico as the location.
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April 18, 2024
