Good Intentions vs. Effective Outcomes: An Analysis of Selected New Mexico Tax Incentives

Tax incentives given in the name of economic development are the dominant form of spending for job creation in New Mexico; these types of tax incentives are also the least transparent and most poorly monitored. Thus, in response to New Mexico’s costly, ineffective, and insufficiently disclosed tax incentives, this report recommends the following changes: the state should ensure internet sales are taxed, adopt combined reporting for all multistate corporate entities, close the Locomotive Fuel Sales Tax Exemption, disclose online the costs and benefits of each economic development incentive deal for all its incentive programs, and more.