Pub. 12 2015 Issue 2

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S Summer • 2015 9 in construction and slow growth in government will continue to be a drag on the state economy. On the positive side, the health- care sector is likely to be a source of strength going forward. A panel with Nick Maniatis, Director of the New Mexico State Film Office, Peter Touche, Santa Fe film producer and Douglas Vadnais, attorney with Modrall Sperling Law Firm, discussed the type of funding the film industry is seeking; sources of film funding; how film production companies spend their funding; and the importance of tax incentives to the industry. Other speakers included former ABA credit union expert Keith Leggett, who provided an update on the rapid growth and com- petition posturing of credit unions. Also, Scott Hildenbrand of Sanders O’Neill & Partners, L.P., gave an amazing presentation on balance sheet management. For those interested, the pre- sentations of our speakers can be found on the NMBA website. For the final day of our convention, golfers were treated to playing in a tournament at the highly rated Bali Hai Golf Course. The tournament was won by Michelle Coons (First National Santa Fe), Bill Coons, Jay Jenkins (Carlsbad National Bank) and Joe Morton (Houde Group). Other attendees were treated to a cooking demonstration conducted by Chef Ryan Schaefer. All agreed that the cooking class was a huge success. During our business session, we discussed the value of NMBA BANKPAC. Whether you like it or not, politics play a huge part in our business lives. Often time our US congressional leaders and our state legislators enact legislation which can be very good or very bad for our industry. In the very bad category, Dodd- Frank immediately comes to mind. It is imperative that we sup- port political candidates who support our industry. Thus, the reason we have NMBA BANKPAC. Last year the NMBA pro- duced a CD promoting our PAC. It is our hope that you will show the CD in your bank to your officers, directors and em- ployees, and request that they contribute to NMBA BANKPAC. As a final order of business, the NMBA acknowledged Ken Clayton, the 106th NMBA President, for his efforts on behalf of the NMBA this past year. Many thanks to Ken and his wonder- ful family. State Legislature The Governor called the Legislature into a one day special ses- sion on June 8 to enact a tax package and a capital outlay bill. Both bills were defeated during the last day of the regular legis- lative session in March. The bills’ provisions include: HB 1 (tax package) provisions: • Allow the Taxation and Revenue Department to reveal tax return information to an authorized representative of a local government of another state who is charged with the responsibility for the administration of that state’s tax law; • Increase the annual amount of credits that may be issued to an aggregate of $2 million and eliminates certain re- strictions on the type and number of investments that may be made and still be eligible for the Angel Invest- ment credit; • Create an income tax deduction for certain unreimbursed or uncompensated medical care expenses; • Extend the due date for corporate income tax and fran- chise tax filing and payment for electronic submissions; • Amend the Uniform Division of Income for Tax Purpos- es Act to allow optional single-sales income apportioning for corporate income tax for taxpayers whose principal business activity in the state is a headquarters operation; • Restore the gross receipts tax deduction for trade-sup- port companies that first locate in a border zone in fiscal years 2016-2021; • Create a new section of the Gross Receipts and Compen- sating Tax Act to make deductible through December 31, 2020 the receipts from the sale by a qualified contractor of qualified research and development services and qual- ified directed energy and satellite-related inputs sold pur- suant to a contract with the United States Department of Defense; • Expand the Technology Jobs Tax Credit and to rename it the Technology Jobs and Research and Development Tax Credit Act; and • Provide the same treatment for petroleum products load- ing fee as for gasoline tax to prevent double taxation un- der special circumstances. SB1 (Capital Outlay Bill) The bill authorizes $295 million ($212.3 million from sever- ance tax bond capacity, $30 million from general fund and ap- proximately $52.7 million from other state funds) for the pur- pose of funding 1,033 capital outlay projects statewide. Of the total, $211 million is authorized for state-owned and operated facilities, and $84 million is authorized for local projects. The bill authorizes $12.5 million in local infrastructure projects that are tied to the recruitment of new companies and new jobs to New Mexico, bringing the state’s total commitment to an eco- nomic development closing fund to $50 million. The bill also invests $45 million in large highway projects to repair faltering transportation infrastructure. Additionally, the legislation provides $8 million for critical highway infrastructure upgrades in Santa Teresa, where the state is experiencing an unprecedented growth in trade, ex- ports, and the establishment of new companies. With respect to public health and safety, the legislation provides for the com- pletion of the Meadows long-term care facility at the New Mexi- co Behavioral Health Institute in Las Vegas, investments in law enforcement training facilities and offices, key upgrades at our correctional facilities and other state hospitals, and funding for the continued improvement of our watersheds and of water in- frastructure in our communities.  As a final order of business, the NMBA acknowledged Ken Clayton, the 106th NMBA President, for his efforts on behalf of the NMBA this past year. Many thanks to Ken and his wonderful family.