Industrial Revenue Bonds can be issued by New Mexico communities to exempt companies from most of the property taxes on land, buildings and equipment. Communities typically grant IRB’s abating between 50 to 95% of property taxes for 20 to 30 years, and Gross Receipts Taxes on equipment are also eliminated through this process. As a real life example, “Company X” announced a new manufacturing plant in New Mexico that would involve an investment of $192 million in land and building and $345 million in equipment, and was awarded an IRB by the local community that abated 95% of the property taxes for a 20 year period. After taking depreciation into account, the company’s total savings amounted to $68.5 million through this one incentive program.
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