New Mexico Economic Development and Revenue Strategy
The State Should Align Tax Policy and Economic Development Policy
• The State should also revisit and examine its tax incentive structure. New Mexico has
literally hundreds of tax credits; most are rarely used, while many of the more popular
ones may result in a net loss in revenue to the State.
◆ The State should focus on fewer, more effective tax credits, including an effort to
streamline and market all tax credits relevant to the State's nine existing "target
industries."
A more progressive PIT tax structure can be designed to retain the tax benefits of living in
New Mexico for high income earners while generating more revenue to invest in the
health, education, outdoor, cultural, and quality of life programs and services that can help
support relocation to New Mexico.
© PFM
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