Wednesday, April 03, 2013

New Mexico offers BNSF fuel break

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A new law in New Mexico will provide a tax break to lower the cost of locomotive fuel for the BNSF Railway Co., the Associated Press reported Wednesday.

New Mexico Gov. Susana Martinez signed legislation into law Tuesday to extend the incentive to BNSF if it spends at least $50 million to upgrade tracks, signals, or other rail-related infrastructure with the state's borders.

BNSF has nearly 1,400 workers in New Mexico, with major railyards in Albuquerque, Belen, and Clovis.

The new law takes effect in July, and offers BNSF a tax break similar to that provided in 2011 to the rival Union Pacific Corp., AP said. That year, New Mexico agreed to lift gross receipts and compensating taxes from locomotive fuel for UP if it invested at least $100 million on a terminal facility near Santa Teresa, N.M.