Community Development Incentive Act

This incentive is designed to give businesses a less expensive property tax abatement alternative to Industrial Revenue Bonds (IRBs), particularly when the project is too small to warrant the time and expense associated with IRBs. It is particularly appropriate for mid-size companies that wish to install equipment worth $1 million or more, although there is no actual minimum. The Community Development Incentive Act (CDIA) applies only to equipment (commercial personal property) at a new business facility (including some expansions), not to the acquisition of land or buildings. Unlike IRBs, this incentive does not provide gross receipts tax relief on the purchase of equipment.

• Governing bodies of municipalities and counties may enact a resolution to exempt up to 100% of property taxes for commercial personal property (not real property) for up to 20 years.
• A 'facility' means any factory, mill, plant, refinery, warehouse, dairy, feedlot, building or complex of buildings located within the state, including the land on which the facility is located and all machinery, equipment and other real and tangible personal property located at or within the facility and used in connection with the operation of the facility.
• A 'new business facility' means a facility that is employed by the taxpayer in the operation of a revenue-producing enterprise. The facility may not be a replacement business facility (by the taxpayer or a related entity).
• Albuquerque: 2/3 of county portion of property tax (50% of total property tax). Belen: 2/3 of city and county property tax.

For more information or a free custom analysis of tax incentives for your company, call 800-226-2935 or email us .