Republican Gov. Susana Martinez says she will ask the Legislature to lower New Mexico's corporate income tax rate to provide an incentive for economic development.
Martinez proposes to reduce the corporate tax rate to 4.9 percent from 7.6 percent over several years. The governor says New Mexico's tax rate is higher than neighboring states and needs to be reduced to make New Mexico more competitive.
The tax change is among several economic development proposals the governor will submit to the Legislature, which convenes Jan. 15. Martinez outlined her plans in a speech Thursday to the Greater Albuquerque Chamber of Commerce.
The governor also wants to change how New Mexico determines taxes for corporations that do business in multiple states, and offer a tax credit for small businesses that create jobs.