Budget & Taxes (Agriculture)

HB 37 modifies New Mexico's property tax law to allow agricultural land temporarily resting due to a special water district's man-made infrastructure failure (reducing water delivery to 70% or less of prior year levels) to maintain its agricultural tax valuation. This directly affects landowners in areas served by special water districts (like acequias or irrigation districts) whose water supply is disrupted by such failures. The bill requires the water district to certify the water shortage to the county assessor, enabling landowners to retain agricultural tax status without needing to actively farm during the disruption. It updates existing tax rules to include this specific scenario as a qualifying reason for "agricultural use" under property tax valuation.

SB 113 increases New Mexico's agricultural biomass tax credit from $5 to $10 per wet ton for dairy and feedlot owners who transport biomass to facilities generating electricity or biocrude fuel. It directly affects dairy and feedlot operators by allowing them to claim this credit against state income or corporate taxes for eligible biomass transportation. The bill sets a $5 million annual cap on total credits, allows unused credits to carry forward up to four years, and permits credit transfers between taxpayers. This change applies to taxable years ending before January 1, 2030, and aims to incentivize renewable energy production from agricultural waste.