Tax break on locomotive fuel clears NM House
Posted at: 02/22/2013 10:24 AM
By: The Associated Press
SANTA FE, N.M. (AP) - The BNSF Railway Co. could receive a tax break on locomotive fuel in New Mexico under a proposal approved by the House.
Supporters say the measure offers the company similar tax treatment as provided to the Union Pacific Corp.
New Mexico has agreed to remove the gross receipts and compensating taxes from locomotive fuel if Union Pacific spent at least $100 million on a terminal facility near Santa Teresa.
To qualify for tax incentive in the legislation, BNSF will need to invest at least $50 million to improve railroad infrastructure in the state, including tracks and other facilities.
The company has railyards in Albuquerque, Belen and Clovis, and nearly 1,400 employees in the state. The bill passed the House on a 64-1 vote Thursday and goes to the Senate.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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